Is Signage an Asset or an Expense? The Business Case for Quality Signage
Walk through any business district in Johannesburg or Gauteng, and one thing is clear: the brands that stand out the most invest in signage. But if you’re a business owner crunching numbers, you’ve likely asked yourself, “Is signage worth the spend—or is it just another cost?”
Let’s unpack why high-quality signage should be viewed not as a business expense, but as a long-term asset that boosts your visibility, credibility, and profitability.
Signage: An Ongoing Investment in Visibility
Signage is often one of the first brand touchpoints your potential customers encounter. Whether it’s a glowing lightbox outside your shop, or crisp vinyl window graphics on your storefront, signage works for you 24/7—even when you're closed.
Unlike digital ads that disappear when the campaign ends, signs have staying power. A professionally crafted sign from a trusted company like Millennium Signs can last 5 to 10 years (or more), continuing to attract customers long after the initial spend.
💡 Pro Tip: Good signage turns heads, but great signage drives foot traffic.
The ROI of Great Signage
A FedEx Office consumer study found that 68% of people believe a business’s signage reflects its quality, and 76% have entered a store or business they’ve never been to based on signage alone. That means the right sign isn’t just decoration—it’s a conversion tool.
Here's how signage adds value over time:
- Increased foot traffic: Clear, attractive signage helps customers find you faster.
- Brand recognition: Consistent signage reinforces your visual identity.
- Customer trust: Well-maintained signs communicate professionalism.
- Operational efficiency: Directional or safety signs reduce confusion and liability.
Think of signage like a silent brand ambassador—always present, always working.
Accounting Perspective: Can Signage Be Classified as an Asset?
Yes, from an accounting standpoint, signage is often capitalized as a fixed asset. That means instead of deducting the full cost in one year, the signage is depreciated over its useful life—spreading the cost out over time while delivering value year after year.
This is especially true for permanent signs like building signage, pylon signs, or large fabricated 3D lettering. Short-term marketing banners or pop-up displays, on the other hand, may be recorded as an expense.
Always check with your accountant to classify signage correctly based on use, durability, and installation.
Cheap Signs vs Quality Signs: What’s the Real Cost?
Going the cheapest route might seem like a smart short-term decision—but it often ends in early replacement, fading graphics, or structural issues. That means more costs down the line.
At Millennium Signs, we’ve seen the difference professional signage makes. We use durable materials like acrylic, ACM cladding, LED modules, and UV-resistant vinyl, designed to weather the elements and maintain visual impact for years.
In other words: Buy cheap, buy twice.
How to Maximise Your Signage Investment
If you're ready to treat signage like the business asset it is, here’s how to make the most of it:
✅ Work with a reputable signage company with a full-service offering—from design to installation.
✅ Choose materials based on location and purpose (e.g., waterproof for outdoors, polished for interiors).
✅ Invest in illuminated or digital signage to increase visibility at night.
✅ Keep it aligned with your brand—use your logo, fonts, and brand colours.
✅ Maintain and clean your signage regularly to preserve its impact.
Final Word: Signage Builds Long-Term Value
Signage isn’t a sunk cost—it’s a strategic tool that influences how customers find, perceive, and engage with your brand.
With over 30 years of experience, Millennium Signs has helped businesses across Johannesburg transform their storefronts and brand visibility. Our expert signage solutions don’t just stand out—they stand the test of time.
📞 Ready to invest in signage that pays off? Contact us at mohammed@millenniumsigns.co.za or 072 621 3273.
