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How do I determine how much to charge for permanent venue hire?
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<blockquote data-quote="Alan Hamilton" data-source="post: 76374" data-attributes="member: 1799"><p>Re: How do I determine how much to charge for permanent venue hire?</p><p></p><p>Depending on the market and equip figure 2.5%-10%. Since you're not in the corp market, not likely competing against someone pricing things from a corp structure then you're probably closer to the 2.5-5% area on equip.</p><p></p><p>There's some weirdness involved with parking gear somewhere. Are they using it Fri-Sat only and it sits the rest of the week (to the point you could come get it and use it for other functions as long as it's back in time for the weekend)? Or will it be used all week?</p><p></p><p>The percentages above should give you an equip rate baseline... <em>for a day</em>. For multiple days most businesses I compete with or work with don't just multiply by the days involved. It's generally something like 1xEquip Rate for 1st day, 1.5x ER for 2 days, 2-2.5X ER for 3 days and then a generally a weekly rate that is something like 3-5x ER. OTOH, you can't really charge a weekly rate if they are only going to use it on the weekend.</p><p></p><p>That's just equip... You still have transportation to get it there and get it back. Admittedly if you're going to park it for 6 months then you could heavily discount this part. But OTOH, gas isn't cheap. Trucks aren't cheap. Don't discount the above so much that it would be crazy to discount this part.</p><p></p><p>Then you have labor to consider. Someone has to set it up and strike it. Again, if it's parked 6 months this is simply and in and an out but nobody, including yourself, should do that for free. Then there is nightly operation. Again, more labor... you don't operate the equip as part of the equip rate you are charging. You charge a line item for tech fees per use (and this could be 25-50hr.. or more...whatever the going rate is with a 4hr guarantee and that should included soundcheck, rehearsals, etc... anytime you HAVE to be there). Or it could be a flat rate for up to Xhrs and then some overtime rate. Your time shouldn't be like a buffet where they use you or your techs for as much as they want for the same price. And don't forget an allowance for time/trouble for a late night breakdown and call.</p><p></p><p>You will have plenty of expenses as far as insurance, maintenance, 'shrinkage', etc etc etc.... So be realistic with your rates above.</p><p></p><p>And as been mentioned... You need to protect yourself and equip with an air tight as possible agreement that spells out what equip is yours to the smallest detail, and that there is no rent to own happening here.... Otherwise a bank, property owner, etc is liable to chain the doors and consider everything inside now their property for back taxes, missing lease payments or whatever. And just having your contract is no guarantee you'll be able to get right in to get your stuff. You might end up with some legal expense. And of course there's the other end of the spectrum where the club burns down with your gear in it, or the owner backs up the Mayflower some Sunday morning and disappears with everything including your stuff. These situations will be down to YOUR insurance to pay...</p></blockquote><p></p>
[QUOTE="Alan Hamilton, post: 76374, member: 1799"] Re: How do I determine how much to charge for permanent venue hire? Depending on the market and equip figure 2.5%-10%. Since you're not in the corp market, not likely competing against someone pricing things from a corp structure then you're probably closer to the 2.5-5% area on equip. There's some weirdness involved with parking gear somewhere. Are they using it Fri-Sat only and it sits the rest of the week (to the point you could come get it and use it for other functions as long as it's back in time for the weekend)? Or will it be used all week? The percentages above should give you an equip rate baseline... [I]for a day[/I]. For multiple days most businesses I compete with or work with don't just multiply by the days involved. It's generally something like 1xEquip Rate for 1st day, 1.5x ER for 2 days, 2-2.5X ER for 3 days and then a generally a weekly rate that is something like 3-5x ER. OTOH, you can't really charge a weekly rate if they are only going to use it on the weekend. That's just equip... You still have transportation to get it there and get it back. Admittedly if you're going to park it for 6 months then you could heavily discount this part. But OTOH, gas isn't cheap. Trucks aren't cheap. Don't discount the above so much that it would be crazy to discount this part. Then you have labor to consider. Someone has to set it up and strike it. Again, if it's parked 6 months this is simply and in and an out but nobody, including yourself, should do that for free. Then there is nightly operation. Again, more labor... you don't operate the equip as part of the equip rate you are charging. You charge a line item for tech fees per use (and this could be 25-50hr.. or more...whatever the going rate is with a 4hr guarantee and that should included soundcheck, rehearsals, etc... anytime you HAVE to be there). Or it could be a flat rate for up to Xhrs and then some overtime rate. Your time shouldn't be like a buffet where they use you or your techs for as much as they want for the same price. And don't forget an allowance for time/trouble for a late night breakdown and call. You will have plenty of expenses as far as insurance, maintenance, 'shrinkage', etc etc etc.... So be realistic with your rates above. And as been mentioned... You need to protect yourself and equip with an air tight as possible agreement that spells out what equip is yours to the smallest detail, and that there is no rent to own happening here.... Otherwise a bank, property owner, etc is liable to chain the doors and consider everything inside now their property for back taxes, missing lease payments or whatever. And just having your contract is no guarantee you'll be able to get right in to get your stuff. You might end up with some legal expense. And of course there's the other end of the spectrum where the club burns down with your gear in it, or the owner backs up the Mayflower some Sunday morning and disappears with everything including your stuff. These situations will be down to YOUR insurance to pay... [/QUOTE]
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