BILLINGS— Sponsorship of businesses on Montana highway exit signs have doubled in cost, pricing out some small business owners.
Montana Logos, which manages the signs, renegotiated its contract within the last year with the Montana Department of Transportation (MDT), which resulted in prices doubling for most customers. They refer to the signs as tourist-oriented directional signs (TODS).
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Transportation officials say they increased the costs to match rising costs. According to Bob Heiser, MDT Right of Way bureau chief, the department and Montana Logos have not increased costs for years.
“The contract was up for renewal this past year. And during that renewal process, we asked them to look at this program. And that's when we discovered that there hadn't been any rate changes in at least 21 years,” Heiser told MTN.
Heiser said the increased revenue will fund highway projects and other infrastructure.
“We feel it's still an affordable way for some of those businesses to have some advertisement along our interstates,” he added.
Some business owners in Big Horn County disagree.
“I just don't understand how a company can gouge small businesses. That wasn't in my budget,” said Kristy Mastin, owner of the KOA campground in Hardin.
She received an invoice for $4,800 in February to keep her business on the exit signs. She paid $2,400 last year for the same service.
“I was dumbfounded,” said Mastin.
Other campground owners in the county shared Mastin’s shock.
“We can't afford that as a small business to suddenly have one aspect of our advertising raised that much,” said Jamie Redger, owner of 7th Ranch RV Camp in Garryowen.
His costs quadrupled in a year, increasing from $1,200 to $4,800, after Montana Logos told him he had to pay to be on the signs for a full year. In the past, he had only paid for half the year.
“At this point, I've told Montana Logos that I don't plan to renew with them,” said Redger.
Another campground, Grandview Campground and RV Park, may be disappearing from the signs as well.
“We have to ask ourselves, what can we cut out? And Montana Logo is probably going to be it,” said the campground’s owner, Laurie Tschetter.
She is concerned about how the lack of advertising will affect the tourism industry in her community.
“We are kind of the backbone of bringing a lot of tourism dollars back into this state,” said Tschetter.
The business owners are working with the Hardin Chamber of Commerce, in hopes the state will hear their voices and give them a grant.
“I want to support these businesses and our communities and whatever we need to do next, whether it's a letter or taking it up a little higher. That's all we can do,” said Alexandria Edwards, with the Hardin Chamber of Commerce.
The community is also starting to consider advertising alternatives.
“It would be cheaper just to go get a billboard or put their money into something that would be more fruitful for them,” said Edwards.
“I've watched different advertising things go by the wayside. And maybe Montana Logos needs to find that out,” added Tschetter.
Montana Logos did not return multiple calls and messages from MTN News requesting comment.
