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12 • WRAPS • 2 0 1 8 WRAPS INDUSTRY REPORT Factors affecting prices also often depend on population densities and the proximity of compe- tition. We did not break down pricing to account for these variables, but simply wanted to offer an overview of general pricing trends. Price per Square Foot—The majority of shops report using some kind of price-per- square-foot pricing formula. Pricing from shops is trending downward slightly. Many (30%) re- port that they charge between $11 and $15 per square foot (down from 42% last year), while the next largest group (29%) say they charge between $6 to $10 (down slightly from 25% last year). Only 6% of shops say they are charging more than $15 per square foot. Other Pricing Structures—A number of shops (17%) employ other pricing structures, such as pricing specically by the complexity of the job, charging a at hourly shop rate, or pric- ing based on time and materials used. EQUIPMENT AND MEDIA Printers and Inks—As noted above, 77% of shops do their own printing, but they are using an array of different printer types— with some shops running multiple printers. When considering a new wraps printer or printer upgrade, the two most important considerations for shop owners are price (69%), followed by color intensity (62%), followed by ease of maintenance (60%), and ink permanence (55%). About 33 percent of survey respondents say they plan to purchase a printer for their wraps business in 2018. The majority of shops that are printing their own wrap jobs are using printers with eco-solvent or light-solvent inks (55%), while about 21% are using printers equipped with Latex inks. Other ink types were also indicated, including true solvents (3%), UV-curable (2%), and UV-gel (1%). A majority of survey respondents (86%) use OEM inks for their wraps business, and 14 percent say they use third-party inks. Laminators—Shops responding to the survey overwhelmingly chose lm lamination (85%) as their preference, and are using lami- nating equipment from a variety of manufacturers. About 11 per- cent state that they don't laminate their work, and about 20 percent of shops say they plan to purchase a new lm laminator within the next year. Vinyl Cutters—Most shops have vinyl cutters in their shops, and 19 percent say they will be looking to buy or upgrade their cutter in the next year (down from 24% last year). Wrap Film—Among various categories of graphic lms, shops say they mainly use printed lm (86%), laminating lm (74%), cut vinyl lm (92%) and perforated window lm (82%). Chrome/ metallic lm usage has increased to 60 percent (up from 47% last year); while usage of color-change lm (59%) and specialty lms such as and paint protection lms (37%) has not changed much since last year. Film Preferences—When selecting wrap media, shops say they most prefer lms that offer air-release channels (81%), conform- ability (73%) and durability (73%). Other important factors include print quality (57%), color fastness/fade resistance (56%), price point (54%) and repositionability (53%). In- terestingly, 13 percent of shops say that envi- ronmentally friendly lms (i.e., PVC-free) are of primary importance to them. Wrap Tools—Nearly all wraps businesses use a variety of different tools including top products such as cutters/knives (99%), squee- BUSINESS & SALES Respondents in the survey noted installation of all types of film with cut vinyl and printed film topping the list (92%; 86%). Color Change Film Chrome/Metallic Film Cut Vinyl Film Laminating Film Paint Protection Film Perforated Window Film Printed Film Reflective Film 59% 60% 92% 74% 37% 81% 86% 69% Price 69% Color Intensity 62% Ease of Maintenance 60% Ink Permanence 55% Build Quality 49% Strength of Warranty 46% Output Speed 44% Attributes that Influence Printer Purchasing Decisions

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