Digital signage leasing – cheaper than buying.
Digital signage leasing is one of the more affordable solutions, as is rental when compared to purchasing digital signage hardware. Using these tax efficient methods of acquiring digital signage hardware is one of the closely guarded secrets.
Do you know this type of company?
Do you have a competitor who changes their advertising hardware every 18 to 24 months? Are they constantly updating their digital signage hardware? If this is the case, you can be guaranteed that the company is using one of the secrets within the digital advertising industry and that is to use a digital signage leasing company, as reported by Digital Signage Systems Limited.
Why consider digital signage leasing?
As you can appreciate, constantly updating and changing the electronic signage hardware is both time consuming and expensive. What would your competitors do with the old signs that have just been replaced? Well the plain truth is that digital signage leasing companies will normally take old hardware away and dispose of it, selling the old hardware to company that usually reselling it or hiring the hardware out.
Digital signage leasing puts the buyer in charge so they can control what hardware is used, keeping an eye on the ROI, once the hardware as paid for its self, plans can be made for other locations.
Leasing the digital advertising hardware provides a flexible solution, the customer may thing a screen size of 26” is large enough for their use, but by renting a unit realize that the screen size does not give enough impact to the marketing campaign, so they can then change the hardware with a simple change in the hire agreement. Once the client has decided on a larger size and is comfortable with the solution, they can then re-connect with the digital signage leasing company and lease the hardware.
Hardware leasing is more tax efficient for most businesses, but it is best to consult your tax adviser.
Digital Signage Agency.
If you are thinking of starting your own digital advertising agency, leasing the hardware is a sure way of starting out. You could lease 1 unit in a prime location then promote the advertising spots to the local business owners. It is not uncommon for advertising agencies to charge from $250 for a 30 second ad on a digital kiosk, whilst the media player will store in excess of 700 adverts of 30 second length. Now for a second, if you calculate that leasing the hardware will cost you $219 per month over a 24 month lease, and you have sold 100 30 second ads, but the real truth is that some, (not all) will upgrade to a longer length commercial.
To recap, 100 advertisers buy a single 30 second advertising spot at $250, the advertisers supply the media for the advertising campaign. So the turnover is $250 x 100 = $25,000 per month in sales. Your outgoings are $219 per kiosk, so if you had 3 in position the total cost for leasing the digital signage is $659, not forgetting the electricity or internet connection, so if we rounded it up to $1000 per month for outgoings you ought to be covered. This gives a profit per month of $24,000 and that is without anyone upgrading! Over a year, you stand to make $240,000 from this single location.