Rental Pricing

I

Ian Coughlin

Sophomore
Jan 11, 2011
133
0
16
New York
www.dtgentertainment.com
How do you figure pricing out for one offs (such as just a mic)? predetermined lengths of time (summer long/"semi install"/weekly house accounts)?

Some one told me start by using what it would cost you to buy the item new then divided by the number of weeks... Obviously this wouldn't apply towards "one offs" then you can factor in your expenses and labor to provide the service.
Does this sound right?

Ian
 
Re: Rental Pricing

You also need to understand what it really costs you to own inventory, provide services, and allocate all the overhead expenses to them. We call that "cost accounting." You might want to start there...
 
Re: Rental Pricing

I generally pay 2.5%-4% of the price of the gear per week. Some people figure the cost on MAP, some on list. Some include the cost of the case and ancillary gear, some just the cost of the big ticket items.

For examples, I was quoted a rate of $325/week for a Meyer Galileo, which is 3.5% of list price.
I was also quoted, by a different company $800/week for an Avid SC48, which is 2.8% of list price
 
Re: Rental Pricing

Jason Raboin said:
I generally pay 2.5%-4% of the price of the gear per week. Some people figure the cost on MAP, some on list. Some include the cost of the case and ancillary gear, some just the cost of the big ticket items.

For examples, I was quoted a rate of $325/week for a Meyer Galileo, which is 3.5% of list price.
I was also quoted, by a different company $800/week for an Avid SC48, which is 2.8% of list price
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Both of those sound like cross rental prices to me. If you're renting to people off the street, the percentage should be a little higher than that to cover the cost of explaining things to the customer, preparing paperwork for a one-off, testing each and every feature upon return, etc. For dry-rental items, the depreciation costs must also be accounted for. For example, and VRX 918 might be $50 a day for dry rental because the depreciation is minimal and it's out almost every weekend. A High end DJ mixer or wireless mic of equivalent or lesser value might demand $75 or $100 to cover the less frequent use and/or higher annual depreciation expense (ie shorter depreciation term, whether from wear and tear or anticipated obsolescence).
 
Re: Rental Pricing

Jason Raboin said:
I don't own a sound company but you wouldn't have to explain to me how to use the gear, so I'm not sure if I fall into cross rental or dry rental territory.
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If you called me to rent a console and you came and got it on friday and brought it back on monday, I'd consider that a cross rental. If I had to deliver it and show someone's nephew how to operate it and where everything plugs in, That's a dry rental.
 
Re: Rental Pricing

Tim Weaver said:
If you called me to rent a console and you came and got it on friday and brought it back on monday, I'd consider that a cross rental. If I had to deliver it and show someone's nephew how to operate it and where everything plugs in, That's a dry rental.
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In my neck of the woods, If someone comes in and rents a board for a day/week/month, that's a dry hire.
If Joe's Sound Company calls me up, and needs a board for a tour (or a weekend), that's a cross-rental. I likely rent a dimmer pack or some back line from him once in a while.
If I am taking a board out myself, and showing someone how to use it, that's "Gravy", on top of a dry hire !
If I show up at your event with a truck full of gear, well, that's my bread & butter.
 
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