By Neil Bell, Owner of New South Outdoor

I am going to be building some wood pole signs this year. I would much rather have steel signs, but the numbers on the wood signs are much more attractive and reduce risk. Some of the best ROIs I have ever had in the billboard business have been from wood pole signs.

I have found that advertisers don’t care what the sign is made of as long as it doesn’t look run down. They want a good, visible read in the right location.

Here is an example of the economics of it. I have about 10 sites slated to be built on a highway between two towns this year. It is not an area that will command high rates, and panels get $400 per 4 weeks. I can build a wood 10’x40’ with lights for about $15,000. For 10 signs, you are looking at $150,000. If I were to build monopoles, the cheapest I think I could get it done for would be around $45,000 per sign. This would be $450,000.

For argument’s sake on the steel signs, let’s assume we can get a little more because they are monopoles – $500 per 4 weeks. That’s $1000 per 4 weeks at 85% occupancy ($850) for 13 periods, which totals $11,000 per year. With lease, power, and sales expenses, you would possibly net 75% of that, which is $8250 per year. At a build cost of $45,000, you would achieve an 18% ROI.

For the wood signs, let’s assume the $400 rate. That’s $800 per 4 weeks at 85% occupancy ($680) for 13 periods, totaling $8840. With lease, power, and sales expenses, you could net 75% of that, which is $6630 per year. At a build cost of $15,000, you would achieve a 44% ROI.

Many will say a wood sign may blow over long before a steel one. At these build costs, you could build it back two times over and still be in it for less.

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