The trends in digital signage industry are growing and businesses are eager to find out how to take advantage of this opportunity to improve communication with the customers. Some of the issues that you may want to consider when it comes to pricing structures include; When you are dealing in digital signage or when you are planning to purchase digital signage software, it is very important that you understand the pricing structures. In this article, we will discuss the cost of digital signage and some of the aspects that determine the cost.
Key Factors Affecting Digital Signage Pricing
The cost of digital signage can greatly differ depending on some factors that are listed below. It is generally the following factors that determine the cost of the overall price:
1. Hardware Costs
The main cost in digital signage is the cost of hardware which is the displays, media players and the accessories used in mounting the displays.
Basic screens cost between $200 and $1,000 while commercial screens are slightly expensive, costing $1,500 and above.
The cost of media players ranges from $100 to $800 according to the processing and storage capacity.
2. Software Licensing and Subscription Fees
Digital signage software is available at various price levels and can be categorized as follows:
There is also a one-time purchase option where the software costs from $300 up to $5 000, depending on the options and the ability to expand the program.
Subscription based: There are many suppliers who provide SaaS (Software as a Service) solutions and charges can be anything between $10 to $100 per screen per month.
Costs may be incurred through aspects such as cloud storage, remote management, and analytical tools based on artificial intelligence.
3. Content Creation and Management
o Customization may increase the cost of developing the content. Companies can either develop content on their own or seek the services of other individuals in areas such as animated graphics, features, and videos.
A basic package of content creation is likely to cost anything from $500 to $2,000 and content management services are likely to be from $50 to $500 per month.
4. Installation and Setup Costs
The installation of digital signage can be done in two ways, do it yourself or by hiring the services of a professional.
The price for a basic model may range from $100 to $500, while the medium and top models producing sound through electrical installation and connected to home networking system range from thousands of dollars.
5. Maintenance and Support
o Updating, correcting, and servicing of the equipment also increases the total cost.
Some of them provide maintenance contracts for as low as $50 per month and others charge per visit.
How Digital Signage Resellers Can Benefit from Pricing Strategies
Pricing is critical for a digital signage reseller because it determines the packages to offer to the clients. Here’s how:
• Offer different packages: Give the client the opportunity to choose between the basic service and the enhanced service with additional options.
• Bundling: create multiple- product packages from the HC, and software content with added value propositions.
• Utilize volume discounts: Most manufacturers are known to give discounts for large quantities in order to improve the profits of the resellers.
• Offer payment schemes: They can make monthly installments or can opt for leasing facilities that can help them to attract more clients.
Final Thoughts
It is crucial to know about the pricing strategies of digital signage if one has to invest wisely. No matter if you are a business owner who decided to purchase digital signage software or a reseller who is willing to maximize profit, the information about the cost factors will be useful. It can be said that the key to the successful implementation of digital signage is the provision of optimal cost and usability.
