Decals Deliver $$
Stick with this profitable product
By Stacey Wenzel
What exactly is a decal anyway? Are there differences between a decal and a label? They are both adhesive products, but depending on who you ask, the definition for each varies.
Some may think labels are typically used for short-term applications, while decals are designed for more durable, longer use. Decals are often printed on stronger materials like vinyl, whereas labels are normally printed on paper. In addition, the use of heavier, thicker inks for decals differentiates the two.
Whatever your criteria are for defining a decal, one thing remains the same. The market is growing and can provide high profit potential.
According to Carl Gerlach, director of marketing for Gill Studios, Shawnee Mission, Kan., more than 60 percent to 70 percent of the decals in Gill Studios' catalog are sold with a 50 percent profit margin for the distributor.
Gerlach believes that one reason behind the high profits is the lack of competition. "Forms manufacturers have competition with computers because [end-users] can now produce their own forms," he said.
"Decals are extremely profitable," said Tim Thompson, marketing manager for Lancer Label, Omaha, Neb. "Most suggested retail margins are in the 40 percent to 50 percent range. The average order value is also relatively high due to the value the product provides--the consumable nature of decals adds to their attractiveness."
While decal sales are increasing, it's not surprising that recent innovations have helped propel the market.
Robert Talion, executive vice president of Adcraft Decals, Independence, Ohio, offers customers a unique process that adds a urethane dome to decals. The decal is put through liquid urethane, which gives the product a high quality, three-dimensional appearance. "It adds thickness to the decal, which enhances the look and magnifies the copy," he said.
Talion also noted that the digital printing of decals in a large format is a rising trend, adding that smaller quantities are done with four-color process.