Sunday 11 January 2009

How we calculate the cost of vehicle lettering...

Our formula to calculate the cost of lettering a vehicle is simple:

Hourly Rate x Time + Materials + Misc Costs = £ Cost To Customer

This is calculated as follows:

Time: design + preparation (cutting/weeding/covering of vinyl graphics) + travel (time to site) + applying (to vehicle)

Materials: vinyl graphics (in metres) x £ per metre + delivery costs

Misc Costs: cost of special materials (eg. digitally printed images) + delivery/production costs

Hourly rate - is charged at £25.00 per hour - we feel this is sufficient to cover our running costs (lighting, heating, insurances, consumables, telephone/internet/mobiles etc, vehicle).

Materials and Misc Costs - quality materials are sourced from reliable suppliers. We add a "mark up" to the costs we pay for them.

Our profits are taken from these.

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Example 1:
A medium sized vehicle (eg. Ford Transit) with an average coverage of vinyl graphics - both sides, rear doors and bonnet - but without any prints and at a local site might calculate as follows:

Time = £212.50
2.5 hrs (discuss & design) + 2.5 hrs (preparation) + 3.5 hrs (travel & apply) = 8.5 hours @ £25.00 per hour

Materials = £100.00
10 metres of vinyl @ £8.50 (average charge p/m - some cost more, others less) + £15.00 (delivery from supplier)

Misc Costs = £0.00

Cost To Customer = £312.50 plus VAT
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Example 2:
A small van (eg. Citroen Berlingo) might require less material, but the time for designing, preparation and applying would not be significantly reduced:

Time = £175.00
2.5 hrs (discuss & design) + 2.5 hrs (preparation) + 2 hrs (travel & apply) = 7 hours @ £25.00 per hour

Materials = £66.00

6 metres of vinyl @ £8.50 (average charge p/m - some cost more, others less) + £15.00 (delivery from supplier)

Misc Costs = £0.00

Cost To Customer = £241.00 plus VAT
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Recent job:
We recently did a large van (a Fiat Ducato XLWB, High Roof) that had only a modest amount of vinyl graphics but which required some large prints. Additionally, a portion of the vinyl was to be in a reflective grade, which is more expensive. The time to complete the application of the graphics was longer than usual as great care was needed when trimming & positioning the prints.

Time = £250.00
3 hrs (discuss & design) + 3 hrs (preparation) + 4 hrs (travel & apply) = 10 hours @ £25.00 per hour

Materials = £91.50

9 metres of vinyl @ £8.50 (average charge p/m - some cost more, others less) + £15.00 (delivery from supplier)

Misc Costs = £158.50

x6 digital prints (700mm x 1300mm) with clear laminate to face + reflective material

Cost To Customer = £500.00 plus VAT

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