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The Economic Context of On-Premise Business Signs and How to Establish Value in the Marketplace

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Types of On-Premise Business Signage

The phrase "place-based communication and graphic devices and systems" may better describe the complexity of on-premise commercial communication than the term "signage." This is so because modernly there are more ways to communicate commercial messages than by traditional on-premise signage, generally referenced as freestanding, projecting, wall (or fascia), roof and canopy/awning (or "face lift") signs. For example, product franchise corporations (e.g., McDonald's) and gasoline chain retailers (e.g., BP Oil) have developed very effective alternate forms of signage -- the most obvious that of "signature" buildings featuring colors or logos emphasized in major media advertising. In some instances, the signature attributes of the building go beyond display of corporate colors or logos and represent the logo or product itself, as does Chili's in Denver, Colorado. Other types of non-sign signage include product displays and dispensers or special site lighting and landscaping.

All forms of alternate signage or place-based communication and graphics devices/systems are used interchangeably by the market-savvy, well-capitalized retailer to offset sign regulations which, for example, limit size or restrict placement of the "traditional" sign. By reinforcing the message conveyed by other media advertising, on-site signature signage enables the business to enhance communication with the consumer public. In cases of severe regulatory downsizing of an on-premise sign, signature signage can successfully substitute for the sign altogether.

An on-premise business sign also possesses a property interest which can be defined and separately valued as the "visibility component" of a real estate site, further complicating the attempt to define what a sign is and how it should be treated in the regulatory sense. Therefore, if one is to accurately measure the contributory value or "economics" of signage to a site, one must understand the total effect of all communication available or being utilized by the business, particularly the communication afforded by window signs, product displays and dispensers, lighting and landscaping, specialized color treatments and architecture.

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