Re: Price check in Aisle 5
I've only ever heard of charging %2. at 5% In only 20 uses it should be paid off...
I've only ever heard of charging %2. at 5% In only 20 uses it should be paid off...
Price check in Aisle 5
- Thread starter Rob Bernstein
- Start date
Re: Price check in Aisle 5
Industry standard for dry rentals of pro audio gear are typically 5%. When I'm renting out gear to people off the street, that's the rate I get. The gear doesn't get paid off with 20 rentals, as there is also the labor involved in handling the gear, and the cost of storage and maintenance.
Rental shops tend to have a larger selection of gear, and that gear may not go out the door each and every week, so 20 rentals may be a couple of years for some pieces of gear.
Now, if you have an established relationship with a rental shop, you can often get better rates. It's still tough to build a business plan with rental gear that rents for 2%. That would mean 50 rentals with NO additional costs before there is a chance for profit.
Industry standard for dry rentals of pro audio gear are typically 5%. When I'm renting out gear to people off the street, that's the rate I get. The gear doesn't get paid off with 20 rentals, as there is also the labor involved in handling the gear, and the cost of storage and maintenance.
Rental shops tend to have a larger selection of gear, and that gear may not go out the door each and every week, so 20 rentals may be a couple of years for some pieces of gear.
Now, if you have an established relationship with a rental shop, you can often get better rates. It's still tough to build a business plan with rental gear that rents for 2%. That would mean 50 rentals with NO additional costs before there is a chance for profit.
Re: Price check in Aisle 5
In only 20 uses it might be pretty beaten up too. And nothing has come in to pay for your time.
In only 20 uses it might be pretty beaten up too. And nothing has come in to pay for your time.
Re: Price check in Aisle 5
You guys just getting into this bar market should understand that you are entering a huge, super fast revolving door out of the business. There is no sustainability in $300 all-in one-offs. What if a drunk pulls over your speaker and kills someone? What if your electrical starts a fire? Are you insured? Do you have workman's comp? There is more to this than you think you need. It's all about money, longevity and limiting your exposure to liability.
You are going to make more money buying some simple to use mixers, snakes, a bunch of K12 type boxes and subs, 6 to 10 wireless systems, and calling it good. Rent to the bands, wedding planners, DJs, churches, schools, etc. This type of inventory will pay for itself several times over. Forget about being the guy that goes out and does it. Rent to the guys going out and doing it and do it on a smaller scale than your technerdum would want if you were doing it yourself.
You guys just getting into this bar market should understand that you are entering a huge, super fast revolving door out of the business. There is no sustainability in $300 all-in one-offs. What if a drunk pulls over your speaker and kills someone? What if your electrical starts a fire? Are you insured? Do you have workman's comp? There is more to this than you think you need. It's all about money, longevity and limiting your exposure to liability.
You are going to make more money buying some simple to use mixers, snakes, a bunch of K12 type boxes and subs, 6 to 10 wireless systems, and calling it good. Rent to the bands, wedding planners, DJs, churches, schools, etc. This type of inventory will pay for itself several times over. Forget about being the guy that goes out and does it. Rent to the guys going out and doing it and do it on a smaller scale than your technerdum would want if you were doing it yourself.
Re: Price check in Aisle 5
This is the Junior Varsity section. I'm not doing this for a living, I have a great day job. Money out, joy in. But yes, there is insurance coverage for the activities I undertake.
Anyone who is doing this for a living needs to plan to "pay themselves first." How much money do you want to earn each year? How many jobs are you likely to do each year? Is this your only job, or if not, what percentage of your income is this meant to bring in? That will set a floor price before expenses like transport, insurance, gear, risk, etc get factored in.
Want to bring in $40k doing two shows a week (100 per year) then there needs to be $400 per show in your pocket after the gear/van etc is paid for.
Scary huh?
This is the Junior Varsity section. I'm not doing this for a living, I have a great day job. Money out, joy in. But yes, there is insurance coverage for the activities I undertake.
Anyone who is doing this for a living needs to plan to "pay themselves first." How much money do you want to earn each year? How many jobs are you likely to do each year? Is this your only job, or if not, what percentage of your income is this meant to bring in? That will set a floor price before expenses like transport, insurance, gear, risk, etc get factored in.
Want to bring in $40k doing two shows a week (100 per year) then there needs to be $400 per show in your pocket after the gear/van etc is paid for.
Scary huh?
Re: Price check in Aisle 5
I am!!! And that's part of the rub. It literally costs me $160 to get in my truck and drive anywhere...and a lot of that is insurance. I can't believe more buyers don't insist on it.
Unincorporated and uninsured band hires uninsured sound company, speaker falls on someone... Victim hire a hotshot lawyer and lives are ruined.
I am!!! And that's part of the rub. It literally costs me $160 to get in my truck and drive anywhere...and a lot of that is insurance. I can't believe more buyers don't insist on it.
Unincorporated and uninsured band hires uninsured sound company, speaker falls on someone... Victim hire a hotshot lawyer and lives are ruined.
Re: Price check in Aisle 5
As do I and I only do this as a hobby. It's only a million bucks and that doesn't go too far these days, but at least I'll have their lawyer working for me. In my regular business I carry $7m.
As do I and I only do this as a hobby. It's only a million bucks and that doesn't go too far these days, but at least I'll have their lawyer working for me. In my regular business I carry $7m.
Re: Price check in Aisle 5
Speaking from his neighbor to the north. I do briefcase gigs for $150 for bar bands. When I'm going out with a full rig my minimum for an acoustic show with speakers, monitors and lights is 350. Add subs and you're looking over 450.
Right now there's a bit more money flowing up in ND because of all the mineral rights and oil roughnecks. I don't mind it at all.
Speaking from his neighbor to the north. I do briefcase gigs for $150 for bar bands. When I'm going out with a full rig my minimum for an acoustic show with speakers, monitors and lights is 350. Add subs and you're looking over 450.
Right now there's a bit more money flowing up in ND because of all the mineral rights and oil roughnecks. I don't mind it at all.
Re: Price check in Aisle 5
5% sounds high to me too, unless you're in the AV rental business. Historically in my city, rental rates have been based closer to 1.5% of street value, and the local music store made that work for over 30 years. They have sold out to Long & McQuade in the last few years, who actually have rental rates and selling prices published on their website, so it's easy to compare. For instance, a Yorkville U15P sells for about $1700, and the daily rental rate is $22, or about 1.3%. They do charge a premium on Saturday rentals (they're not open on Sundays, at least not in Halifax), but it's still only 1.7%. The other gotcha is that L&M will not reserve items (maybe they will if the rental has been prepaid, but that's the policy).
So dry rentals simply aren't a part of my business. There's no way I can, or want, to compete with rates like that. L&M are set up to deal with the headaches of renting bits and pieces, and if someone calls me for a dry rental, that's where I send them.
However, I can make money selling a system and the service that goes with it. The bar market has almost entirely dried up here, other than supplying monitors, mics, and a console that works to supplement an installed system, and I can do that fairly inexpensively if I don't have to rent a truck. For a full system with very basic lighting, I don't leave the warehouse for less than $400 + tax. Sometimes having somebody take the DIY route once makes them realize the value of having an experienced tech looking after all the details and doing the heavy lifting.
GTD
5% sounds high to me too, unless you're in the AV rental business. Historically in my city, rental rates have been based closer to 1.5% of street value, and the local music store made that work for over 30 years. They have sold out to Long & McQuade in the last few years, who actually have rental rates and selling prices published on their website, so it's easy to compare. For instance, a Yorkville U15P sells for about $1700, and the daily rental rate is $22, or about 1.3%. They do charge a premium on Saturday rentals (they're not open on Sundays, at least not in Halifax), but it's still only 1.7%. The other gotcha is that L&M will not reserve items (maybe they will if the rental has been prepaid, but that's the policy).
So dry rentals simply aren't a part of my business. There's no way I can, or want, to compete with rates like that. L&M are set up to deal with the headaches of renting bits and pieces, and if someone calls me for a dry rental, that's where I send them.
However, I can make money selling a system and the service that goes with it. The bar market has almost entirely dried up here, other than supplying monitors, mics, and a console that works to supplement an installed system, and I can do that fairly inexpensively if I don't have to rent a truck. For a full system with very basic lighting, I don't leave the warehouse for less than $400 + tax. Sometimes having somebody take the DIY route once makes them realize the value of having an experienced tech looking after all the details and doing the heavy lifting.
GTD
Re: Price check in Aisle 5
Yep. I only do bar gigs if I really like the band or the bar owner. It is never about the money because there is barely gas money at that level. I did lots of them for years to gain experience and play with my toys. The same gear and work brings $750-$1000 for that level show but that happens at an "event" rather than a bar. Walk in and turn knobs pays $100-$150 here at most venues with their own gear.
Yep. I only do bar gigs if I really like the band or the bar owner. It is never about the money because there is barely gas money at that level. I did lots of them for years to gain experience and play with my toys. The same gear and work brings $750-$1000 for that level show but that happens at an "event" rather than a bar. Walk in and turn knobs pays $100-$150 here at most venues with their own gear.