Editors Note

Welcome to this issue of Digital Display Insider. In this issue, we will be giving you valuable information as you navigate the mobile digital billboard (M.D.B.) startup process.

Getting your pricing right isn’t just about covering costs; it’s about setting up your business for long-term profitability and growth. From understanding your true expenses to proving value with accurate impression data, we’ll guide you through strategies to avoid common pricing pitfalls. Whether you’re using hourly, campaign, or package-based pricing, this issue will help you make informed choices and stay competitive in your market. Let’s dive in and ensure your pricing approach supports your business goals from day one.

M.D.B. Startup Focus

Setting the Right Price: A Guide to Pricing Your MDB Services

When you’re starting out in the mobile digital billboard (MDB) industry, pricing your services can feel like walking a tightrope. Set your rates too low, and you’ll struggle to cover costs and make a profit. Price too high, and you risk losing clients to competitors. Finding the balance takes careful thought and planning, but getting it right can mean the difference between just breaking even and running a profitable, scalable business. This guide will walk you through core strategies to help you develop pricing that’s both competitive and sustainable.

1. Know Your Costs

Before setting rates, you need a solid understanding of your costs. Start by breaking these down into two categories: fixed costs and variable costs. Fixed costs are expenses you’ll have whether your truck is running or not, like truck payments, insurance, and regular maintenance. Variable costs depend on usage and include things like fuel, driver wages, and any route-specific costs. Together, these give you a baseline that you need to cover with each job.

Many operators use an 8-hour minimum as their base rate, which helps ensure they’re covering their daily costs even if they’re charging hourly. Industry averages for exclusive-use campaigns tend to range from $1,000 to $1,600 per day. Unfortunately, newer operators often underprice their services to win initial business, putting themselves in a tough position that’s hard to escape as they grow. Even if you’re using hourly pricing as a basis, quoting clients a flat campaign price can make the process simpler and help you avoid the issue of clients constantly asking for “just a little more.”

2. Choosing a Pricing Model

There’s no one-size-fits-all approach to pricing MDB services, but there are some common models that work well depending on your goals.

• Hourly Pricing: This can work for short-term or flexible campaigns and is easy for clients to understand. However, it can limit revenue if you’re not booking all your available hours.

• Campaign Pricing: Flat-rate campaigns, such as daily, weekly, or monthly rates, work well for clients who need consistent visibility. With this model, you can set rates that cover your costs and factor in your profit margins, making it easier for clients to budget and providing more predictable revenue for you.

• Package-Based Pricing: To encourage longer bookings, you might offer package discounts. For instance, a daily rate of $1,500 could drop to $1,300 per day if booked for a full week. Offering packages like these incentivizes clients to commit to longer engagements and helps fill your calendar.

Most operators work on the exclusive-use model, meaning only one client’s ads are displayed per campaign. This exclusivity allows you to charge a premium and gives clients control over the messaging and locations targeted.

3. Proving Value to Clients

Setting rates is only part of the equation—you also need to communicate the value clients receive. Clients want measurable results, so it’s increasingly important to offer some form of impression data attribution to show ad performance. Many attribution devices on the market rely on sniffing wireless or Bluetooth signals to estimate foot traffic, but these methods can be unreliable. With the abundance of connected devices (smartwatches, fitness trackers, tablets, etc.), these systems often count one person multiple times.

In my experience, StreetMetrics provides some of the most accurate impression data available for mobile billboards. Their technology offers reliable metrics, allowing you to give clients a clearer picture of who’s seeing their ads. Being able to back up your service with hard data not only justifies your rates but also builds trust with clients and encourages repeat business.

4. Researching the Competition and Setting Local Rates

A good way to get a feel for market pricing is by checking out what local digital billboard companies charge for their spots. Look up rates both on high-traffic interstates and main surface streets to get a solid comparison. These numbers give you an idea of what local advertisers are willing to pay for digital advertising and provide a benchmark for shared-route pricing in your area.

For exclusive-use campaigns, the range of $1,000 to $1,600 per day is a strong universal standard across the U.S., which you can adjust based on specific factors in your market. If you’re operating on a shared-route model, this market research will give you a good sense of how to set your per-client rates. Don’t hesitate to call local billboard companies to ask for their pricing—you’re simply gathering information to stay competitive.

The Bottom Line

Setting the right price for your MDB services is essential to building a sustainable business. Knowing your costs, choosing the best pricing model for your operation, proving value to clients, and researching local rates all play a part. However, the easiest way to avoid falling into pricing traps is to hire an industry expert who can help you set rates tailored to your market and business model. While paying for consulting may seem like an upfront expense, the cost of getting pricing wrong can be far higher in the long run.

If you need more personalized advice or want to discuss your specific market, feel free to reach out and schedule a consultation. A solid pricing strategy is the backbone of a successful MDB business, and getting it right from the start will set you up for long-term growth.

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Tribute To Our Veterans

“So God Made A Soldier”

Inspired by Paul Harvey’s, “So God Made A Farmer”, this is a tribute to all the men and women who have served in our armed forces.

From The Vault: Past M.D.B. Campaigns

Supporting Our Veterans with the 50 Mile March

In honor of Veterans Day, we’re highlighting a cause that’s close to our hearts here at Lead Innovations. Earlier this year, we had the opportunity to support the 50 Mile March—an annual walk from Lincoln to Omaha in 22 hours, aimed at raising awareness and funds for veterans facing mental health challenges and homelessness. This event is more than just a march; it’s a powerful movement that brings the community together to support our veterans and give back to those who’ve served.

For this event, our company provided an LED truck that served as the last vehicle in the convoy, with a special message on the rear screen encouraging drivers to slow down for the marchers ahead. This simple, eye-catching message added a crucial layer of safety, alerting oncoming vehicles to the convoy and helping protect everyone involved. With the LED truck trailing the marchers, we were able to provide a level of visibility that wouldn’t have been possible otherwise.

It was an honor to play a part in this mission and to support the veterans who put their lives on the line for our country. The 50 Mile March not only raises essential funds but also reminds us of the struggles many veterans face and the impact a community can have when it comes together for a cause. This Veterans Day, we’re proud to remember those who have served and grateful for the chance to support efforts like the 50 Mile March.

Bonus Content

Many new LED truck operators make the same mistakes when it comes to pricing. After 8 years in the business, I had a complete paradigm change and it made a MASSIVE difference. Check out the video in our FREE Digital Display Insiders Facebook Group.

Equipment For Sale

2021 Ford Transit 350HD AWD/Legion 613 P3.9