Wrap Shop Fundamentals, Part One

Dale Salamacha is co-owner of Media 1 Signs/Wrap This! (Longwood, FL).

This month’s article begins a two-part series, and also represents the last Vinyl Apps column that I’ll be writing. Don’t do a victory dance – you’re not getting rid of me that easily! Next year, starting with the February issue, I’ll begin writing a bimonthly column, called Shop Ops, which will deal with day-to-day and strategic shop management. So, in my farewell to the Vinyl Apps column, I’ll cover 10 key topics to consider in starting and/or operating a vehicle-wrap shop. This summarizes past column topics, and may present new points.

Point 1: Are you ready?
Let’s say you’ve been working at a signshop for several years, and feel it might be time to branch out on your own. You’ve gained first-hand experience in many different aspects of running a shop. You’ve sold, designed, fabricated and installed wraps and signage – perhaps you’ve even handled estimating and collections.
I’m all for self-employment. But, make sure you’re ready to take that giant leap. Running a shop and owning one are distinctly different animals. You may think it’s easy; you see how much money “the boss is making,” and you think, “I can totally do this! I’m tired of doing all the work while he’s making all the money.”
There is money in owning your own shop – if you know how to run a business. If you don’t, it’ll turn into your worst nightmare, and you’ll be asking for your old job back before you know it. It’s nice to work 40 hours, cash your check on Friday and enjoy the weekend. Once your shop’s operations rest squarely on your shoulders, working 40 hours a week is a thing of the past.
This isn’t a comprehensive guide to being your own boss, but there are several points to consider.

Point 2: Location, materials and tools
You’ll need a location where you can both meet clients and do your work. It can virtually be anywhere; I started out 32 years ago in my mom’s two-car garage! Find as much space and exposure as you can afford.
But, make sure the space is enclosed. You can’t wrap outside, or in an open-air carport, and expect professional results. A closed garage that’s isolated is far better than a highway storefront with nowhere to pull a car inside. Don’t sacrifice advertising potential for installation quality!
Remember, any space’s overhead costs, such as rent, electric, gas, water, electricity, equipment and everything else, will be there whether or not you’re wrapping. You must have enough savings to offset these costs until your business gets off the ground, or you’ll fail! A safety net that will cover three to six months is recommended. Don’t expect instant revenue; chances are, it won’t happen. It takes time to establish clientele, and longer to collect their money.
Next, consider your equipment needs. Decide whether you’ll operate a printer, plotter or laminator in-house, or if you’ll initially outsource printing and finishing. This choice is a Catch-22. You can start your business for much less out of pocket if you outsource. However, you’ll also pay more for finished products than if you made them in-house.
You may want to start off with outsourcing, but have a solid plan in place to add equipment as time progresses. As soon as possible, handle all your production in-house. This provides control over timelines and quality, and boosts profits.

Point 3: Focus on design
With your shop and equipment in place, how are you going to win clients? If you’re an industry veteran, I’ll bet potential customers have been waiting for you to open your own shop. But, how do you earn their repeat business?
Here at Wrap This!, our goal is helping clients expand their businesses. That’s our job. Making a bunch of money off customers in one shot to boost your fledgling business short-term won’t succeed in the long run. You’re providing a means for them to garner more business – and buy a second van for you to wrap, a third, and so on.
How can you best help? One thing: Design. You have the ability to create marketshare for your clients through their mobile advertising. Design should capture the company’s brand and mission, and help them command attention. Thousands of people view a vehicle wrap daily; it’s your job to make sure your customer’s wrap gets noticed!
Don’t be afraid to offer budget-friendly, partial wraps to clients starting out or who haven’t previously bought wraps. Partial wraps deliver the same bright, bold exposure, while offering your customer a choice. Our biggest fleet client operates more than 1,800 vehicles; we’ve wrapped one every day this year (weekends included), and not one of them has been a full wrap. Clients love to have options – especially when considering investing thousands of dollars.

Point 4: Commit to installation
Quality installation is paramount to your success. No one cares how effective the wrap’s design is if it’s bubbling and peeling within months. You have to stand behind your work and correct the problems, but the client is also riled up now because you’ve taken their vehicle off the road (for a second time) so you can fix work that should’ve been done right in the first place.
A material or installation failure costs you and your customer time and money. But, it also costs you something even more valuable: your reputation. We wrap more than 60 vehicles per month, and every one of those clients have been referred by word of mouth.
Choose your vinyl carefully, and make sure the installation is as perfect as can be before it goes out your door. If it’s not good enough, rip off the panel(s) and start over. It’s no fun, but it’s much better than the client returning with a complaint later. Strive for installation perfection and, when something does fail – it will every once in a while – stand behind your work, absorb the extra cost and handle it. Period.

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Point 5: Learn to negotiate
You’ve chosen your material, equipment and supplies. Now, from whom will you buy them? There are many sign-supply options. Consider factors beyond pricing: think about their location, their delivery schedule and level of customer service. Are they happy to assist you? Are they eager to see your business succeed? If they are, they will invariably go beyond just delivering materials to you by giving you extraordinary service when you’re in a pinch.
Evaluate prices at least quarterly. I know that’s a daunting task with everything else you have to do, but a 2-3% cost savings on vinyl boosts your bottom line. If you spend $5,000 per month on material and you can negotiate 3% off, that’s $150 a month – $1,800 a year – in your pocket.
Next month, we’ll wrap up the Top Ten list with these five points: Pricing for Profit; Color-changing-film Wraps; Non-vehicle Wraps; Keeping Your Word, and Keeping it Fun!