How Effective Point-of-Purchase Signs Can Increase Sales

Posted by Jim Hollen on Jun 18, 2015 2:30:00 PM

We all know the importance of branding and how essential point-of-purchase signs are in communicating a brand message, drawing attention to a display or product, and getting busy shoppers to stop to further investigate a product. Even the kids in the picture below understand the importance of effective signage.

lemonadeStand

Despite our intuitive understanding of the importance of effective signs, most of us rarely get an opportunity to see first-hand what impact signs can have. In today’s blog we will look at one simple example of what a difference effective signage made for one of our customers.

Sunfood is a California-based company focused on healing, energy, and longevity through education and by providing the most calorie-sparse, nutrient-dense organic, non-GMO, raw, vegan, and gluten-free superfoods on the market. Sunfood distributes to over 1900 locations in the U.S. and hundreds more internationally.

Several examples of Sunfood’s retail merchandising set are shown below. Sunfood has been successful in getting end cap locations in most of its retail locations, which is generally great for sales. But, what is missing from the merchandising presentations below? That’s right, effective point-of-purchase signs. Despite the quality of their product and the attractiveness of their packaging, Sunfood has been missing out on an opportunity to build their brand and increase sales by adding effective signs.

natural food retail displays - sunfoods

 

With merchandising sets like the ones pictured above, Sunfood was averaging 6.4 turns annually per store nationwide. In mid-2012 they ran a 5-store test in which they added prominent header and side signs to the most basic of wire racks shown below.

 sunfood natural foods retail point of purchase display

What they found was that by adding the signs they were able to more effectively promote the Sunfood brand. Average turns for the 5-store test increased 30% to 8.3 compared to the national average of 6.4. In the top selling test store Sunfood products turned 14.8 times, nearly reaching $10,000 in monthly sales. What that means in terms of sales lift is that a store carrying 12 Sunfood products which would typically have average annual sales volume of about $124,800 would likely see sales increase to $163,200, an increase in sales of $38,400. Larger stores that carry 48 Sunfood products could see annual sales increase from $499,200 to an estimated $652,800, an increase of $153,600.

Effective POP signs do make a difference. RICH LTD. produces the side and header signs pictured above on our wide format printing equipment in our graphics department. They are very simple to install in the field, and they do a great job of dressing up a very basic rack. With the kind of incremental sales these signs can generate, the return on investment is a no brainer.
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