Big Picture - May 2020 - 13

Take this time to really see what's involved in producing
your designs from start to fi nish. It can be eye opening to
unearth what your company is spending beyond your design
expenses. It's a good idea to have two pricing points. The
fi rst one is your regular design fee to create a wrap or sign
utilizing your client's artwork, logos, and information. The
second is what you charge for creating a new image or
brand. Starting from scratch or creating a brand-new
company requires more time and more research, which in
turn raises your pricing for design.
PRODUCTION
Some shops fail to include production in their pricing. Even
though our printers print on their own, we still have to load
the machines, RIP fi les, maintain quality prints, and the
printers themselves need weekly maintenance. This obviously
increases your labor and overhead expenses. We try to
add in cost to our square foot pricing that covers graphic
production time for the client. You also need to factor in
how long it takes to laminate, cut, weed, pre-mask, etc.
Sometimes the production side can take just as long as the
installation process.

It's tough for everyone right now. Some businesses have
had to shut their doors temporarily, or even permanently.
Other businesses have been able to stay open and continue
generating revenue as if nothing really happened. Those
might be rare, but regardless, now is the time to review your
pricing structure. If anything, it may solidify that your
pricing is correct and you're positioned to be profitable.
How will you price yourself when everything returns to
normal? That may not happen any time soon, or ever again,
but keep in mind, business will start back up and gradually
go back to a similar format. Don't sell yourself short or give
anything away. Stick to your guns and raise your pricing.
Fear comes into play with some people. They feel the
pricing is right and they don't want to change anything.
We're going to offer a small discount to businesses we know
were affected by this virus to help out any way we can. But
it's also nice to know we have new pricing ready to go, so
when reality comes back, we'll be ready to be profitable
again. Staying profitable and making your margins will
allow most companies to get through tough times like the
one we're dealing with now.

INSTALLATION
Installation time and pricing can be complex if you're new to
the wrap industry. Most experienced wrappers know how
long it takes to install a basic wrap and what challenges can
affect the installation time. We started to time all of our
wraps to really see how long it takes one or two installers to
complete certain projects. The most basic install might take
longer than other projects due to the nature of the vehicle or
design that was produced. Timing your installation will
really help with figuring out how much your company needs
to charge to be profitable.
We also delved into some under-the-radar aspects of
installations: How long does it take to wash or detail the
vehicle before you're ready to apply any fi lm? How long does
it take to break down the vehicle, i.e., remove door handles,
mirrors, badges, etc.? All of this should be added to your
overall overhead and time it takes to complete your clients'
projects. I would walk into our installation bay and wonder
why a job was taking so long. After a while I would start to
track each job from beginning to end. It was boring, but it
allowed us to see how long it really takes to complete a
standard full or partial wrap.
Our staff understands that when we're timing our jobs to
adjust pricing, it's not to question their efficiency. Some
companies and installers are faster than others. Speed isn't
everything, but it's very important. We let our staff know that
quality is our main goal, so we want to know how long it takes
to produce the quality of work we've been producing for the
past 16 years. Knowing every element of your business allows
you to communicate and explain your process. Our clients'
education is just as important as any other aspect of our
business. When your customers really know what goes into
their wrap, the pricing becomes the third or fourth most
important variable. This should allow you to upcharge or
increase your pricing moving forward.

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Big Picture - May 2020

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