Yesterday I got slammed on You Tube for selling my wall vinyl decals too cheap. According to the commentator, he could sell my decals for so much more, he wouldn’t need to invest in a business like mine. He could just buy them from me and resell for a nice profit.
It got me to thinking, “Am I really selling my self short with my prices?”. The fact is, I have already paid for my equipment many, many times over. But is that enough? Should I be selling for more?
For example, I just got an order for 140 polka dots in four colors. I sell the set for $30. And it takes me about 10 or 12 minutes to make. Plus another 4 or 5 minutes to prepare for shipping. The whole project will take me about 15 to 20 minutes, depending on my distractions. That’s $30 bucks in 20 minutes! That’s not too bad for soft manual labor, at my leisure.
How Much Money Can I Make On A Roll Of Vinyl?
Now let’s consider the price of materials. A vinyl roll of Oracal 631 (aka Orafol) will cost me $23.49 from USCutter.com. The roll size is 24″ x 10 yards (or 30 feet). You also have to consider the cost of masking tape. For this example, I am going to use the ORATAPE HT55 High Tack Decorative Film Transfer Tape for 631 Vinyl, also from USCutter. The cost is 73.99 for a roll of 24″ x 100 yards (300 feet). I am using this size roll to make it easier to calculate later.
Let’s say I sell only one at a time. Meaning, I will not be making them in bulk, saving on added inches to your roll of vinyl. Therefore, to make the 20″ x 20″ peace sign above, I would be using the whole 24″ width of the vinyl plus about 24″ of height to fit the design and provide for some slack. So, I would be using 2 feet of vinyl length for every $18 dollar order for this peace sign.
So, let’s do the math:
How many peace signs can I make from this roll of vinyl?
30 feet divided by 2 feet per decal = 15 decals
How much Do I make gross?
15 decals x $18 = $270.00
Cost Of expenses?
Cost of vinyl = $23.49
Cost of Masking Tape = $7.40
(I used about 30 feet or 10% of the masking tape roll)
Total Expenses = $30.89
Note: Shipping pays for itself and leaves a little behind to cover for the cost of shipping supplies.
What’s left after expenses?
$270.00 – $30.89 = $239.11
How much am I making at an hourly rate?
If you take the 15 decals and multiply that by 20 minutes, you get a total of 5 hours. Now Take $239.11 and divide it by 5 hours and you get $47.82 an hour.
The fact is, the You Tube commentator had reason to call me out on my prices. I know my prices are a bit low. And I know I can make a little more on my decals. But, I’m good at $47.82 an hour for now. If I were ever to do business face-to-face and not just online, I would definitely up my prices.
For more on pricing vinyl decals, click here: Vinyl Decal Price Calculator