Any dealers CONSIDERING the vehicle WRAP business?

[Jeff Kershner]

I keep catching articles promoting and forecasting the vehicle wrap business.

I know MOST dealers are outsourcing this to the local custom shop but I'm wondering if any dealers are offering this service in-house?

From the looks of the recent market trends and forecasting, seems as if it could be a potential WIN opportunity for dealers to get in on. Having the ability to upsell custom colors, designs and tones could be another avenue dealers are looking for.

U.S. Automotive Wrap Films Market Trends and Forecasts 2021 - 2028: Growing Popularity of Automotive Wraps Films for Vehicle Customization - Link to market analysis overview​

1. The U.S. automotive wrap films market size was estimated at USD 1.18 billion in 2020 and is expected to reach USD 1.29 billion in 2021.
   
   
2. The U.S. automotive wrap films market is expected to grow at a compound annual growth rate of 18.8% from 2021 to 2028 to reach USD 4.32 billion by 2028.
   
   
3. Light-duty vehicles dominated the U.S. automotive wrap films market with a share of 53.8% in 2020. This high share is attributable to the rising demand for wrap films as a cost-effective solution compared to vehicle paint, especially for high-end vehicles such as Audi, Mercedes, Porsche, Volkswagen, and BMW.
   
   
4. Key factors driving the U.S. automotive wrap films market growth include the rising trend of advertising on automobiles coupled with the growing popularity of automotive wrap films for vehicle customization.

Much of the forecasting is based on Advertising Wraps but I see more potential in the FULL Vehicle Wraps.

...an automotive wrap film is a cost-effective solution, which maintains the original paint job and provides a high resale value for the vehicles. The minimum service life for good quality automotive wrap ranges from 5 to 6 years. Automotive wrap films offer the flexibility to get the vehicle fully wrapped or semi-wrapped depending upon the requirement. These wraps can be a bit expensive than paint in the case of complex designs, however, with high quality, the overall return on investment in the case of automotive wrap films is high as compared to vehicle paint. Automotive wraps are a cost-effective option when the paint cost is expected to be very high, for example, in the case of racing cars, as these cars often require quick color and design changes depending upon their sponsors, company, and branding. The low cost of wraps as compared to vehicle paints makes it suitable for these applications, which, in turn, is anticipated to increase the demand over the forecast period.

 

[Mustafa Mustafa]

Working in fixed-ops for awhile and being close with our sales department, I believed this would be a great opportunity. It didn't have to be just wraps, but just offering window tinting, ceramic coating etc. All the good stuff service could upsell.

In my opinion I believe the optimal dealership for incorporating wraps, window tint, ceramic coat etc. Would be an automotive group who is willing to use whichever dealer that is in a prime location with extra space.

From there all the other sister stores can send work to that store. Dealerships do not like taking risks, until a dealership down the street has such success they fear of missing out.

A smaller family style dealership group can still offer this if they're able to make a partnership with a sublet and give him/her a bay or designated area to do work.

 

[craigh]

One observation I will throw out there is that I've met more than a handful of people who wrapped their vehicle and were not happy with the results. They look awesome going down the road, but up close in your driveway every imperfection looks like a stone chip and every crease around the mirrors, hood, etc is typically fairly noticeable. The place near me has had to re-wrap multiple cars because customers were not happy with the results.

If you can find someone who already does it really well, just upsell what they do - less than perfect wrap jobs are.. awful.

 

[Ryan Everson]

Window tinting is easily trainable and can become a great profit center for dealers, especially if you add it as an addendum to every vehicle you sell.

Whereas, car wrapping is more of an art skill-wise and has a much smaller niche clientele.

 

[ChrisR]

Window tinting is easily trainable and can become a great profit center for dealers, especially if you add it as an addendum to every vehicle you sell.

Whereas, car wrapping is more of an art skill-wise and has a much smaller niche clientele.

Plus, the equipment requirements to do a full color print wrap vs solid color vs window tint are vastly different in pricing & required time usage (if you don't use a full color wrap printer on a regular basis, the color cartridges go bad).

 

[Mustafa Mustafa]

Dealerships and collision centers sublet many services, whether it be wheel repair, PDR or PPF. Netting 25%-30% profit just from scheduling the appointment. No extra staff needed.

All it takes is to partner up with a reputable nearby company that also has a mobile service, and put flyers on the customer lounge and send an email blast.

 

[Rick Buffkin]

All this talk about wraps has got me going crazy over here!

 

[craigh]

All this talk about wraps has got me going crazy over here!

This is the type of wrap business dealerships should be in. I want spicy chicken tacos while I wait for my vehicle to be serviced.

 

[craigh]

All it takes is to partner up with a reputable nearby company that also has a mobile service, and put flyers on the customer lounge and send an email blast.

Having built a tool called "Delivery Tracker" where we worked with a dealer to track everything that happens between the time of purchase and the time of delivery, I would raise a few points if you intend to sell on new/used cars at point of sale:

- The partner you choose should understand delivery turnaround times can be short and be flexible about that
- The wrap should be shown during F&I process, ideally as a monthly payment
- Mobile service with wrapping can be tricky - every spec of dirt or moisture that gets under the vinyl is a problem now and a nightmare later

I would personally never wrap my car after the horrors I've seen when they get unwrapped, but I know customers love that they can have any color, design or color-shifting options even.

 

[Mustafa Mustafa]

This is the type of wrap business dealerships should be in. I want spicy chicken tacos while I wait for my vehicle to be serviced.

Ahhh I can already Imagine it,

Parts department stocking frozen supermarket tacos in their inventory fridge, marked up 1000% the first week and sold 10% over cost a week before expiration. Then handed out to the techs for a month well done the day before they expire haha