In retail fuel, margins are notoriously slim—measured in pennies per gallon. Every tool that influences customer choice at the pump matters, and few tools are as immediate and impactful as the price sign.
“Gas retailers receive a fraction of the price listed on the sign–their net profit per gallon is around $0.03-$0.07–after factoring in costs like labor, utilities, insurance, and credit card transaction fees,” writes Alex Kinnier, CEO of Upside, in Fortune. “This puts the net profit margin of a gas station at less than two percent. For reference, the banking industry has roughly 30 percent net profit margins.”
For decades, fuel retailers have relied on electronic displays to communicate with drivers, but not all displays are created equal.
“Surface Mounted Device (SMD) LED technology has transformed how price signs perform and how they impact profitability,” says PWM Electronic Price Signs CEO Wolfgang Manz.
PWM Electronic Price Signs recognized technology’s potential almost two decades ago, becoming the first manufacturer to launch white SMD digits in 2007 and later expanding to full-color digits in 2015.
Today, SMD-based signs are not simply an upgrade — they are a competitive advantage when competing in a “pennies game.”
At its core, SMD stands for Surface Mounted Device, a type of LED that is mounted directly onto the surface of a circuit board rather than inserted through holes. Unlike older, bulkier diodes, SMD LEDs combine multiple chips in a single package, making them more compact, efficient, and versatile.
For price signs, this translates into several technical and business advantages:
SMD is not just a minor tweak to LED technology—it’s a full redesign that addresses many of the shortcomings of traditional electronic signs.
Innovation in signage isn’t just about technology; it’s about timing. PWM recognized the limitations of traditional LED price signs and pioneered the move toward SMD well before others in the industry.
2007 – First series production of white SMD digits.
2015 – Launch of full-color digits, expanding marketing and design possibilities.
2016 and beyond – Integration of TRACK communication technology and proprietary outdoor protection systems (OPS-2), ensuring reliability in the field.
By moving early, PWM not only helped define industry standards but also built a decade of experience refining, testing, and perfecting SMD technology. That track record gives fuel retailers peace of mind: these aren’t experimental systems — they’re proven solutions with years of performance behind them.
Fuel retailers considering signage upgrades often ask: is the difference really noticeable? The answer is a resounding yes. Here’s how the two technologies compare:
|
Feature |
Traditional LED Signs |
SMD-Based Signs (PWM) |
|
Design |
Bulkier, often several inches thick |
Slim, modern, less than an inch |
|
Visibility |
Narrow angles (<90°) |
Wide 120° viewing angle |
|
Brightness |
Can fade in sunlight |
Uniform brightness, even in glare |
|
Energy Use |
Higher consumption |
Lower energy, cost savings |
|
Durability |
Sensitive to weather and vibration |
IP67-rated, resilient outdoors |
|
Light Quality |
Pixelated or uneven appearance |
Smooth, crisp digits |
|
Maintenance |
More frequent replacements |
Longer lifespan, fewer issues |
|
Heat Management |
Can overheat in extreme conditions |
Advanced thermal control system |
For a retailer, these differences aren’t just about aesthetics, they directly affect visibility, operating costs, and ultimately, revenue.
Price competition in fuel retail is as fierce as it gets. Drivers making split-second decisions need to read and trust the price displayed from a distance, in motion, and in all weather conditions.
SMD’s 120-degree viewing angle is a game changer. It means a price sign can “catch” drivers in multiple lanes of traffic, giving stations a wider window to attract attention.
Studies broadly show pricing is a significant motivator for some drivers to adjust when and where they buy fuel, especially in periods of high price volatility or when driving routes allow for price comparison.
For stations selling thousands of gallons per day, attracting price conscious drivers, can add up to substantial incremental revenue.
As one PWM customer shared: “The brightness and 120-degree angle visibility of PWM’s SMD signs help our stations stand out. We continue to see increased customer activity.”
Profitability isn’t just about bringing in customers; it’s also about keeping expenses under control. SMD technology addresses this by lowering total cost of ownership:
For stations operating dozens—or even hundreds—of signs, these savings compound into real margin protection.
While fuel pricing is the anchor, SMD technology opens the door to broader marketing possibilities. PWM integrates SMD into profit boards, message centers, and dynamic advertising displays that can showcase promotions, loyalty programs, or ancillary services like car washes and convenience stores.
By turning a static price display into a dynamic marketing platform, fuel retailers can:
SMD technology may now be widely adopted, but not all systems are equal. PWM’s decades of experience give their signs a level of resilience and intelligence that sets them apart:
For retailers, this means confidence that their signs will perform day in and day out, with minimal downtime and predictable maintenance.
The signage market has reached a tipping point. Traditional LEDs are no longer sufficient for an industry that depends on clarity, reliability, and cost efficiency. SMD is not a temporary trend—it has become the new standard.
Fuel retailers who have already transitioned are seeing the benefits in higher customer traffic, stronger brand presence, and reduced operating costs. Those who delay risk falling behind in a market where every detail (and penny!) counts.
For fuel retailers, the question is no longer whether to upgrade, but when. SMD-based electronic signs have proven themselves to be more visible, more durable, and more cost-effective than their predecessors.
With PWM leading the industry since its first SMD digit innovation in 2007, retailers have a trusted partner to deliver proven performance and long-term value.
Ready to protect your margins and attract more customers? Contact PWM today to learn how their SMD-based signage solutions can transform your business.