‘Delayed payments, margin squeeze burden innovation fabrication, mounting business’
By Pray Jani - May 28, 2021
The pandemic has put additional burden on the innovators, posing immense threat to our survival: Sanjay Sirpaul, MD, Sakshi Advertising.
Innovation fabrication and mounting businesses that are engaged in OOH advertising are continually taking steps to enhance the range of innovations seen on the Indian OOH landscape. However, these businesses encounter various challenges in their activities. Cost of materials is cited as one key barrier. Delayed payments compound this challenge.
Sanjay Sirpaul, MD, Sakshi Advertising says, “The problem lies within the dynamics of the industry. It is a well-known fact that the agencies delay the payments by as much as a year. Meanwhile, campaigns continue to pour in and we are compelled to invest our personal funds in the business which makes it difficult for us to sustain for long. Our service is dependent on materials like lightings and machinery which demand high investments. The pandemic has put additional burden on the innovators, posing immense threat to our survival.”
Sanjay expressed concern over agencies blacklisting media owners and innovators who request for timely payments after a campaign has been executed. As such, the business margin in innovation fabrication and mounting is seen to be very tight.