The most common question we hear, “how much do wraps cost?” is really two questions; how much do wraps cost, and how much is it costing my business not to have one? The simple answer to the first question is that wraps are almost always priced by the square foot. Cars, SUV’s and vans are all $11-$12 per square foot while box trucks, buses, and trailer rigs are $7-$9 per square foot. All you need to know is the square footage of the surface of your car (just the parts that will be wrapped), then multiply by the cost per s.f. and you have a pretty tight number.
The math on the second question involves a few more variables but it’s a lot more fun to entertain the equation. Let’s make some assumptions, first:
1. Let’s say you spend $2500 on a wrap.
2. The wrap will last 5 years.
3. You get 1 phone call a week from just driving around.
4. Your closing rate is a dismal 25% (1 out of 4 leads generated.)
5. Your average sale is $1500.
6. Your margin is 33%, or $500 per sale.
Now we have enough data to do some ciphering and you want to know the answer to the following queries:
1. What’s my average cost per lead?
2. My average cost per sale?
3. What’s my ROI?
Let’s take them one at a time and figure your average cost per lead first. 4 leads a month (#3) x 60 months (#2) = 240 leads over the life of the wrap. The cost of the wrap was $2500 so divide that by 240 leads generated and we get $10.42/ea. The answer to the first question is $10.42. That’s CHEAP relative to the cost of leads from almost any other marketing channel.
Calculating your average cost per sale is simple in this case. Since we close a sale on one out of every four leads, our cost per sale will be four times our cost per lead, or $41.68/ea. Would you pay $42 per lead that turned into a $1500 sale? (If you have to think about it, you might wanna re-think the math involved here. It doesn’t get this good in Vegas.) If you’d still like to see the formula, here it is: $2500/(4 leads x 60 months) x 25%.
Now for the big drum roll and the all-powerful ROI calc. ROI, or Return on Investment, is the bookkeeper’s way of saying, “what’s the ratio of profit to expense? That math formula looks like this: Profit=((4 leads x 60 months) x 25%) x $500 (#6 above), divided by $2500 (cost of wrap). That works out to $30,000/$2500, which equates to 1200%.
Not a bad investment for a truck/car/van/bus you were going to drive around anyway, no? To sum it all up, the answer to the first question is about $12 a square foot. How much it will cost you not to wrap your business vehicle could amount to a lot of money (in this case, $30,000 – $2500, or $27,500 bucks) depending upon your average sale, margin, and your closing skills. One thing’s for sure….if you don’t do it, you get nothing.