Vehicle Graphics & Wraps
Commercial vehicle graphics are applied to company vehicles and come in a variety of applications from full wraps to partial wraps, cut letters, window graphics and magnets.
Industry studies have shown Vehicle graphics are one of the most cost-effective forms of advertising. Having the lowest cost per thousand impressions and highest impressions per dollar compared to other advertising channels makes vehicle advertising a smart strategy for developing brand awareness and promotion. Recent statistics reveal a vehicle wrap can generate 30,000 to 60,000 daily impressions. A trailer wrap has the potential to deliver 10 million impressions per year. Using reflective vinyl for nighttime visibility can increase impression to 14 million. A well-designed wrap on a delivery van and generate up to 16 million impressions per year.
At Signs Of Significance, we understand how the value of vehicle advertising is enhanced through creative design, quality materials and professional installations. We also understand savvy business people want to understand the return on any investment being considered prior to a final decision.
The ROI evaluation often starts with the question “How Much Does a Vehicle Wrap Cost?” The answer is, “It Depends on Several Factors.” We focus on 3 cost buckets; Design, Production and Installation.
As a quick review-
Key Factors influencing Design costs are:
- Will this be a full wrap or some level partial graphics?
- Is the wrap a single color or a custom printed wrap?
- Will the artwork include Logos, information and pictures? As these all require detailed placement based on the specific vehicle.
- Are production ready files being provided or will we lead design efforts? The Signs Of Significance team will always perform a detailed evaluation of Client files to ensure form, fit and function relative to the specific vehicle.
Factors influencing Production costs are:
- Length of time the wrap is intended to stay on the vehicle. Is it a short-term promotional or a long-term wrap?
- Square footage of the area to be printed and installed.
- Do windows need to be covered with perforated window film?
Factors influencing installation charges are:
- Total square footage of the area to be wrapped.
- The paint and surface conditions of the vehicle.
- Special surface features; rivets, screws, corrugations, and accessories like door handles or trim that need removing and re-installation.
- The complexity of the compound curves to be wrapped.
- Remember, with regular maintenance a quality vehicle wrap can last 5+ years
- Once we determine the value of the Clients investment in vehicle graphics, we can use the Signs Of Significance Vehicle Wrap Break-Even Calculator to determine when the investment will generate positive returns. This helps assess whether wrapping a vehicle makes financial sense.
- The break-even for a new vehicle wrap is calculated quickly and accurately with the following formula:
- BE = IC / GM
- BE or Break Even is the number of new opportunities required cover the cost of the investment.
- IC or Investment Cost, is the estimated cost of the vehicle wrap.
- GM or Gross margin is the profit earned by each new opportunity.
(For break-even calculations we calculate Gross Margin as Average Deal Revenue X Average GM%)
Let’s run through an example:
- A plumber considers wrapping a truck.
- How many incremental opportunities would need to be generated by the wrap to break-even (pay for the wrap)?
- For the purpose of our example the IC for a full wrap of the Plumbers truck will costs $3000
- The GM Gross Margin per opportunity is = to his Avg Deal Revenue ($5000) x Avg GM% (20%) or $1000
- BE = IC / GM
- BE = $3,000 / $1,000
- Break Even = 3
- This contractor would need to attract 3 incremental opportunities over life of vehicle wrap (5+ years) to break even on the cost of the wrap. Less than 1 incremental opportunity per year.
- Additional opportunities above 3 results in a positive return on investment.
- less than 1/year – the wrap pays for itself
- 5 incremental opportunities = one/year, 60% return on investment,
- 10 incremental opportunities = two/year, 300% return on investment,
- Commercial Vehicle wraps are one of the smartest investments one can make.
Signs Of Significance #1 Design Goal is to Make Every Impression Significant!