The 6 Best Ways to Save Money on your POP Display

If you are like most customers, saving money on your POP display is an important objective. If you can save money on your POP display, you can stretch your budget further and improve your return on investment. Of course, there are other ways to improve your return on investment, including creating visually appealing displays that sell more product and drive more revenue. In fact, if you interested in learning how to get your display for free, you might want to check out our blog entitled: Point of Purchase Displays: How to Get Them for Free.

Today, however, we want to focus on the 6 best ways to save money on your POP display. Adopting these 6 cost savings approaches can make a meaningful difference in the amount you pay for your custom display stands. Here are the 6 ways:

  1. Start Early– Increasingly, it seems that planning horizons for brands and retailers have shrunk. Shorter planning horizons can often result in a hasty design process, fewer manufacturing options, more mistakes, and even rush charges.

The benefits of getting an early start on your POP display development process can be significant. Given more time, your POP display manufacturing partner can reduce manufacturing costs by taking advantage of overseas production opportunities, for example, as well as leveraging its supply chain and sourcing capabilities more effectively. You will also be able to avoid costly and unnecessary expedited shipping charges like air freight or FEDEX overnight charges.

  1. Increase Your Order Size– Increasing your order size can help drive meaningful per unit cost savings. Rather than ordering 4 times a year, for example, consider doubling your quantities and ordering twice a year. Most manufacturers offer volume discounts or better pricing for larger orders since longer production runs generally yield real cost savings and expenses like tooling costs and set-up charges can be spread over a greater number of units. You should be careful to consider costs such as inventory holding costs, the cost of capital, etc. in determining your order size. The ideal order size is known as the economic order quantity, which is depicted in the graph below.
  1. Design for Maximum Material Yield– Material yield is a critically important consideration in designing any POP display. It comes into play in cases in which material inputs include sheet goods such as plywood, MDF, acrylic, sheet metal, and PVC. The most common size of sheet goods is 4’x8’ so trying to maximize the yield of these materials can have a big impact on cost.

Say, for instance, that you want the MDF shelves on your display to be 25” wide by 13” deep. Sounds reasonable, right? Sure, until you do the math. If you can reduce your shelf size to 23.5” wide by 11.5” deep, you can get 16 shelves out of a sheet instead of only 10 shelves. That is a 60% increase in material yield which means real cost savings.

  1. Embrace Value Engineering– If you are working with the right POP manufacturing partner, be sure to ask them for their ideas on how to value engineer your display to save money. If they are experienced, they should be able to present you with a set of design options and tradeoffs that can yield cost savings for you.

Value engineering ideas might come in the form of size changes that impact material yield as discussed above. In addition, they might suggest that you consider cheaper materials such as PVC instead of acrylic, reduced material thicknesses for non-structural display components, less labor-intensive approaches to millwork joinery, and other design changes that might result in production efficiencies without really impacting the aesthetics of your display.

  1. Design for Optimal Shipping Economics– Many customers mistakenly focus on the manufactured cost of a display, but the real aim should be to minimize the total delivered cost of the display. Shipping costs can represent an important component of overall delivered cost so it is worth thinking about early in the design process.

Designing a custom display stand that knocks down efficiently can save a lot of shipping cost. The trick is to reduce the box size without requiring too much effort to assemble the display at the store level. If your display takes more than 15 or 20 minutes to assemble, you may have to rethink your design. Properly designed, an effective knock-down display can save 50% or more in shipping costs compared to the assembled version of the same display.

Considering box size early in the design process is also important in the same way that material yield is important. For example, if you create a knock-down display that fits in a box that is 9” wide x 13” deep x 14” high, you should be able to fit 75 units per pallet. If you were able to shrink each of these dimensions by 1”, so 8” wide x 12” deep x 13” high, you should be able to fit 120 units per pallet, or 60% more. That is likely to translate into something close to 60% savings in shipping costs.

  1. Select Experienced Manufacturing Partners who are Vertically Integrated– A lot of POP display companies have exited the manufacturing business and have adopted business models whereby they design, outsource, and do project management. While some may execute this approach effectively and serve their customers well, chances are you will be paying more for your displays compared to a POP display company that owns the means of production and actually does the manufacturing. The reason is that every outsourced participant adds a mark-up on the value they add, which is an inherently inflationary approach.

Generally, the more vertically integrated a manufacturer is, the more cost effective your display will be. There are limits to this, however, since it may make sense to outsource certain processes to other companies that specialize in a particular area if they are able to operate extremely efficiently. Furthermore, a less vertically integrated manufacturer with a sophisticated supply chain could possibly achieve a superior cost structure compared to an inefficient highly vertically integrated manufacturer.

More important than how much of the manufacturing process a company does in-house is the experience that the company has and the expertise it offers its customers regarding how to save money on their POP custom display stands.

Leave a Reply

Your email address will not be published.