queen of wraps vehicle wraps

Vinyl Wrap Cost Break-Even Point

Are you considering a vehicle wrap, but you can’t decide if it is worth the investment? Let us break it down for you very simply and show you whether or not the return is in the investment. The following equation will be able to give you a clear idea as to whether you should wrap your vehicle.
BE = F / (GM)
BE = break even point (units sold, services rendered, customers acquired, etc.).
F = total fixed costs (the anticipated cost of wrapping your vehicle).
GM = gross margin associated with each sale or customer.
To better show how this works, we have provided a real world example to help you apply it to your own business:
Example 1: Catering Business
A catering business considers wrapping her vehicle. How many customers would she need to acquire through her wrap in order to make it worth her investment and at least break even?

F (Fixed Cost of Investment): approximately $3,000 to fully wrap her sedan.
GM (Gross Margin per new customer): $1,000
BE = F / GM
BE = $3,000 / $1,000
BE = 3 new customers within the lifetime of her vehicle wrap (3-5 years).

That being said, the caterer would need to acquire at least 3 new customers from her vehicle wrap in order to break even with her initial vinyl wrap cost. Any additional customers after the first 3 customers would be a positive return on her investment. Vehicle wraps typically last anywhere from 3 to 5 years, which means she would only need to acquire 1 new customer per year in order to break even. Anything outside of that would be money in her pocket!
Not only is it quick to break even on your investment, but there are other things to consider as well outside of this equation. Customers attained through your wrap could end up becoming repeat customers or send referrals your way which will only continue to support your business investment.
Queen of Wraps has all the information you’ll need on vinyl vehicle graphics and will help you determine the cost of a vinyl wrap for your business.

Bryan Griffith

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