Calculating the break-even of a vehicle wraps and graphics project gives businesses great insights on deciding whether or not the investment is worthy to them. Click to skip to the calculator below.
Break-Even = Vehicle Wrap Cost / Gross Margin Per Unit or Customer or Sales*
*Choose the right GM metric for your industry or business.
Gross Margin Per Unit equals to selling price minus cost of good sold of a single product unit resulting in the amount contributing to profit.
Total Break-even units are the total number of additional products you need to sell to cover the cost of wrapping a vehicle.
The average life span of a professionally executed vehicle wrap or graphics is 5 years. The calculator on the right gives the total units/customers/sales required for a wrap investment to pay off over the course of 5 years.
Ranging from $500 to $5,000, the cost of a vehicle wrap depends on the size, color, material, and body complexity. Riveting Wraps listed some reference price points on the calculator, but we can always design to stay within your desired budget. (Learn more: How Much Does a Commercial Vehicle Wrap Cost?)
A juice bar decided to wrap its vehicle to raise brand awareness in the local community and to stimulate store traffic. To prominently showcase their brand, they designed their vehicle graphics to include large logos and basic contact information. The estimated cost of the wrap is $1,700. The average gross margin for each cup of juice is $4. Before going forward with the marketing expense, the owner wanted to assess how many cups of juice he needs to sell to cover the investment.
Break-Even = Vehicle Wrap Cost / Gross Margin Per Cup Of Juice
= 425 cups of juice
As a result, the juice bar needs to sell 425 cups of juice to pay off the cost of the vehicle wrap.
Vehicle wraps and graphics are a durable and long-lasting form of advertising, its average life span is five years. If we break down the investment in time, its break-even would be as follow:
(Cups of Juice)
An effective vehicle advertisement is going to pay for its own in no time with growth in sales and brand awareness by making strong impressions to targeted prospects and customers.
* Not sure of the cost? Contact Riveting Wraps at 425-368-5007 or firstname.lastname@example.org for a free estimate for your vehicle(s). We can give you estimates for full wraps, partial wraps, logos and lettering.
** For an even more accurate calculation include the life time value a new customer. (Total GM over the life of the customer. This would include the initial new customer GM + their GM on repeat and referrals.)