The Cost of a Point of Purchase Display (POP Display)
If you are considering new marketing strategies and are wondering about the cost of a point of purchase display, I have a formula that can help you decide if POP displays will fit your budget.
Point of purchase displays (also referred to as POP displays) are wonderful marketing tools that increase brand awareness, product credibility, and sales.
Point of purchase displays come in a variety of sizes and shapes to accommodate any product, as well as any floor space or counter space restrictions.
Temporary POP displays are generally made of corrugated board while more permanent displays are often made of plastic, metal and other more sturdy materials.
What is the Cost of a Point of Purchase Display?
Because custom POP displays can range from simple and utilitarian to complex and lavish, it can be difficult establishing a budget for such a project. Below is a formula I use to help clients decide on an appropriate budget and cost guideline.
The following is for a custom-designed, temporary POP display (made to be used less than a year) that is made from corrugated board. This type of display is considered the more affordable, introductory low-end option.
50% of retail value of your product x 8% = non recurring merchandiser display (excluding tooling, pack-out and transportation)
Example:
- ABC Gizmo to be sold in grocery and convenience stores
- 500-1000 stores.
- 48 count floor display.
- Product retail value is $8.99
[(48 x $8.99) x 0.5] x .08 = $17.26 for each display (excludes tooling, pack-out and shipping)
Therefore: $17.26 / 48 units = $0.36 extra cost per unit
If, after plugging in your own values into this equation, you find that your additional cost per unit is too high, it may not be the time to invest in a custom point of purchase display just yet.
Point of purchase displays are great for introducing new products in addition to establishing permanent shelf space. And they should, ideally, be tied in with other marketing efforts.
If you need help with a POP display project, I’d be happy to assist you. Contact me here.
