Does anyone use billboards? How do they compare to bandit signs?

Question

Having second thoughts about bandit signs.  Anybody tried using billboards?

Dev Horn · Answer

P.S. I personally think @Jon Klaus has a better idea.  Buy a truck for $3K, get signage on it for $1K - then move that around on the weekends, loan it to people that are moving into your rent houses, etc.  Much more economical and useful than a billboard!

Dev Horn · Answer

We've done billboards, and of course, HomeVestors built their business on billboards and still use them.  They are hard to compare to bandit signs which are cheap and probably violate local ordinances.  Billboards are SUPER expensive (depending upon your market, of course) and and generally seen by a lot more people than a bandit sign.

For example, in LA County a large billboard (called a Bulletin) on the freeway can run as high as $25K per month.  Here are example MONTHLY costs for CBS Outdoor (for signs of various sizes and locations) in that county:

AREA: Los Angeles County

SHELTERS

• Individual (NET) Unit Cost:  $1500
• 3 – 5 Units (NET) cost      per unit:  $900
• Production costs: $100 per ad + shipping and       handling

• Production costs: $100 per ad + shipping and       handling

POSTERS

• Individual (NET) Unit Cost:  $1,500 - $4,000
• 3-5 Units (NET) cost      per unit:  $1,200 - $2,500
• Production costs:        $150 per ad + shipping and handling.

• Production costs:        $150 per ad + shipping and handling.

BULLETINS (Surface   Street)

• Individual (NET) Unit Cost:  $3,500 - $6,500
• Production costs:        $750 per vinyl + shipping and handling
• ***This ballpark range does not include Sunset       Blvd. inventory.

• Production costs:        $750 per vinyl + shipping and handling
• ***This ballpark range does not include Sunset       Blvd. inventory.

BULLETINS (Freeway)

• Individual (NET) Unit Cost:  $8,900 – $25,000+
• Production costs:        $750 per vinyl + shipping and handling

• Production costs:        $750 per vinyl + shipping and handling

*Pricing may vary by location.

*All pricing is per 4 weeks.

*Unit Cost pricing does not include cost of production.

//

In Dallas, our costs are about 50-60% of the LA costs.  In small markets, the costs may run 20-30% of the LA costs.  It all has to do with traffic and LA is about the highest trafficed market.

SO, how do you win with billboards?  You get REMNANT inventory.  I believe this is how HomeVestors got so many of their signs in the early days.  They had a buyer work with the big outdoor companies and they scooped up remnant inventory at a much lower cost.

You generally want to run on billboards at least 6 months - so a $3,000 bulletin X 6months + $750 for the vinyl = $18,750.

NOW, I mentioned we've run them in Dallas, and we got a great (remnant) deal on I35 North which is super congested during rush hour.  So we were paying maybe 30% of the list cost..... and we don't think we made money off of them.  It was great for branding, but they just didn't seem to generate enough activity to justify the expense.  That was a few years ago.  With changes in the market, they might work better now.

Whatever the case, you want to get remnant inventory.  And you need a brand and message that are super easy to recall.  With those two factors, outdoor (billboards, bus-stop signage, etc.) could be an effective marketing strategy.

Jon Klaus · Answer

Homevestors has used billboards for a long time, so I assume they are getting results.  However, they are big enough that branding may be a more important part of their strategy, so imitating might not work.

I'm about to put signage on a truck and 16' enclosed trailer.  I'll post on how that goes once I have it out there for a while.

Jon Klaus · Answer

I already own the truck and trailer and have my GC using it to build and rehab houses in my target buying area.

Elijah Glenn · Answer

Noone knows?

Jerryll Noorden · Answer

Don't use bandit signs, period.

They look dirty, selfish pollute the city, ruins the image of the town, (how would you like it if 34 investors would put bandit signs with WE BUY HOUSES, all over your neighborhood. It looks tacky.

Having said that, is that the image you want to show the public of your company? Do you see Nike putting bandit signs? No. Do you see that loser investor that is not competent enough to get a decent site, that is credible enough not having to take such desperate measures? Yup!

That is the image you give yourself if you do this.

And the better reason not to do it...

I do 0 marketing. All my leads come for free organically.

So little ol'timer Ms. Daisy gets into her carriage on a lovely Sunday and passes a "WE BUY HOUSES  15552736376"

"Ohh dear" Ms. Daisy sighed out... "what was that? a lovely sign to buy my house but I didnt have time to take out my latest Samsung10X to take a hi def little picture, oh bother".

BUT... Ms. Daisy proclaimed.. I do have the interwebbles.

So dear ol Ms. Daisy goes to our best friend, Mr. Google and asks:

Who put bandit signs in CT?

And she finds the #1 ranking most amazing smartest sexiest, manliest, gorgeousteststst god like creatures around.. and she says

"well looksie here, that hot young manhunk is just delicious.. I will call that sweet piece of manmeat"

And we .. ahem.. I mean they get the deal.

Sure you get some leads being desperate and trying too hard... but you get ALL of the deals being stuck up "I don't need you, you need me" attitude ;)

So do not do bandit signs.

EVERYONE IN CONNECTICUT...

Don't mind me. You SHOULD do bandit signs, and write your phone numbers SUPER tiny on the board and write the We Buy Houses super large.. oh wait you are already doing that. GOOD job (you dopes).

Billboards...

I am about to experiment with it. I saw an ad, where you can put the billboard up from the comfort of your home. As low as 10 dollars dudette.

How awesome is that!

If you do do it (I said doodoo :D :D) let me know how she blows!

Lynn Henley · Answer

Aroldo,

Did you ever get information on installing a billboard on your property?  If not, is that something you'd still like to consider?

Thanks!

Lynn

Aroldo Villarreal · Answer

Hello all,

I have  a lot next to a major highway and was interested in installing a giant (14' x 48') metal billboard on there. My plan was to install it, rent it out until I get my initial investment, and then throw my own sign of "We Buy Houses" up there. Anyone have any idea of how much it costs to actually buy and install on your own lot? I know Lamar does it for "free", but you don't get control and get only a monthly rent. It is technically your own.

Sam Craven · Answer

this thread delivers!  I have come close to pulling the trigger on the moving truck ad a few time, but I think lending it to my contractor has sold me!  What a way to get it around town in all my target areas.

Amanda Fox · Answer

@Dev Horn thank you for all the amazing information, that was so helpful!  What is remnant inventory??

We have been quoted a price of $1000 for 4-5 city posters (6'x12' not illuminated) by a local Denver company.  Posters would move around to different poster locations, and it is more cost effective to have them move around.  Have also been thinking about posting an ad in craigslist for people who drive around the denver metro area extensively for their business to have a magnet advertising our business on their vehicle.

Does anyone use billboards? How do they compare to bandit signs?

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