Determining Market Size

[paul luszcz]

How do you determine the size of the vehicle wrap market in your area? I know many sign shops just start offering wraps because, well, just because they can. They don't do market research or business planning.

But if you were going to invest a significant amount of money in equipment, training, shop space and personnel, you'd need to estimate sales. In order to get a reasonable estimate of sales, wouldn't you need to know the size of the market?

How do you determine this? Has anyone done this?

 

[MontereySigns]

You can figure $1.00 for every person in the population of your local market for adhesive vinyl films. Of this, $.20 or so is used on cast films which are primarily used for wraps.

Hope this helps.

-Bud

 

[CS-SignSupply-TT]

You can figure $1.00 for every person in the population of your local market for adhesive vinyl films. Of this, $.20 or so is used on cast films which are primarily used for wraps.

Hope this helps.

-Bud

Bud, that is very interesting information. Is that a working statistic from one of the franchises (i.e. FastSigns, Signarama, Signs Now)?

 

[CS-SignSupply-TT]

definition?

You can figure $1.00 for every person in the population of your local market for adhesive vinyl films. Of this, $.20 or so is used on cast films which are primarily used for wraps.

Hope this helps.

-Bud

How is the local market/trade area defined?

 

[Locals Find!]

You can figure $1.00 for every person in the population of your local market for adhesive vinyl films. Of this, $.20 or so is used on cast films which are primarily used for wraps.

Hope this helps.

-Bud

Just curious about that math. If you take a fair sized city. Say 250,000 people or so. You would only figure on $50,000 worth of work for that area as a whole?

Seems kinda like really low numbers. Figuring $2500 for a wrap minimum. You would only do 20 jobs in the whole area??

Is that .20 per person based on a year, a month, 6 months?

 

[Fred Weiss]

I would think a reasonable approach might also be the amount of non wrap vehicle graphics one currently is producing. Then play with assumptions based on the percentage that could be upsold to wraps averaging x% more than vehicle graphics.

Example:

2010 vehicle graphics dollars = $100,000
% that would upgrade = 25%
% amount of upgrade dollars less original amount = 400%

100,000 x .25 = 25,000

25,000 x (400 - 100) = $75,000 additional revenue

 

[paul luszcz]

Fred, you're assumption is that you will get a share of the wrap market based on your share of the overall vehicle graphics market. But what is the size of the overall vehicle graphics market and what share of that are wraps?

I would assume investing in equipment, facilities, training and marketing would increase our share of the vehicle graphics market also. We currently treat it as a bit of an afterthought because we our facilities are inadequate.

What I'm trying to determine is how we know it's worth spending money to pursue a market (any market, but in this case, wraps) starting with knowing the size of that market.

 

[Fred Weiss]

Fred, you're assumption is that you will get a share of the wrap market based on your share of the overall vehicle graphics market. But what is the size of the overall vehicle graphics market and what share of that are wraps?

I would assume investing in equipment, facilities, training and marketing would increase our share of the vehicle graphics market also. We currently treat it as a bit of an afterthought because we our facilities are inadequate.

What I'm trying to determine is how we know it's worth spending money to pursue a market (any market, but in this case, wraps) starting with knowing the size of that market.

I guess what I'm saying is that the amount of business one is doing (your market share of the total market) may be a better starting point than simply knowing size of the total market. So if you asked the question of our members who offer both conventional vehicle graphics and wraps: What percentage of your vehicle business is wraps? you might get a more useful number.