Hire Rates - Rule of thumb?

[Dynamic Entertainment]

Is there a general consensus amongs members of a "Rule of thumb" on hire rates?

The way I'm thinking...is it as a percentage of the purchase cost?

So if a pair of speakers cost £1000, you hire it out at 10% (£100), which means they paird for themselves in 10 hires.... or do you do 20%, 30% etc etc.

Whats your thoughts guys?

Cheers

Steve

:beer1:

[DB Entertainments]

10% Is what I have always worked on ...'Ish' lol x

[Vectis]

IMO it shouldn't be tied directly to the purchase cost but more realistically an "ownership cost".

Those £1k speakers will last a damn sight longer than a £100 ImpossibLED, probably. But will they be more susceptible to damage? Will they need patching up every x hires? PAT testing?

Perhaps try to come up with a 'lifetime plan' for typical items of equipment including the above, and that should give you a better idea.


There'd be nothing worse than buy £1k speakers, sending them out on hire at £100 a time but skipping them after the 9th hire...

[Dynamic Entertainment]

Ok then Martin. I see where your coming from. So with a pair of mackie SR1530z Active loudspeakers, on hire to pubs, what would you suggest a nightly rate at (including installation and removal)?

Btw, i paid £1600 for them :o

[Shakermaker Promotions]

I've always wondered what others thought about hire rates etc...
I've never thought about the 10% thing to be honest. I try not to hire out equipment if I can help it and will try and get the job myself but I have done it about 5 times since I started. I also wondered about deposits etc...

If you are hiring out for example, £3k worth of kit, what kind of deposit would you take, if any? I have T&C's on my hire forms that says that all of the equipment is checked beforehand and it should be returned in the same condition. The hirer also signs and agrees that any damages to any equipment need paying for. I make it all clear vocally too.

You could in theory say that the hire of a Disco set up could be £150.00 (example) but the deposit could be £1000.00. This would be a bit silly in reality as your gear could get trashed, thrashed, ruined and all you'd get is £1000.00 back via the deposit.

[Danno13]

10% is about right, but certain things tend not to follow this rule, moving heads for example, as you can get a £1800 Mac 250 for about £40 a day!

[Dynamic Entertainment]

I have Terns and Conditions specifically for dry hire. I also have check sheats that the client signs to say its in good working order when collected, which is also signed off on return.

I also ask for 2 forms of ID as proof of person and address (sensitive data can be blanked out).

I also ask for 25 percent of the hire cost as a deposit.

[wensleydale]

For the purposes of a rule of thumb- 10% is a good place to start.

[csg]

most pro hire companies hiring out pro level gear tend to work around the 2-4% range, 10% being totally unobtainable.

Certain kit, with either a shorter expected life, or of very low cost would attract a higher percentage to ensure it is well in profit by the time it requires replacement.

As an example of my hire rates:

Sound system comprising of:

8 Void Arcline x subwoofer
8 Void Arcline 6 line array loudspeaker
1 rigging kit for above ( rigging pins, frames and chain hoists)
1 drive rack inc:
2 PKN XE4000 amplifier
4 PKN XE6000 amplifier
1 Klark Teknik DN9848E processor
speaker cable, signal cable as required

Hire cost per day - £965
Purchase cost - £48,450

so, this works out at approx. 2%. This is at the lower end of the scale, as being amps, speakers and processors the service life should be long, 10 years or more, so you have plenty of time in which to make your money back ( 50 hires)

For cdj1000 mk3's, with a projected service life of 18 months, you need to make your money back quicker.

At the budget end of the market, percentages rise a bit higher, as there is little point on renting out a £300 pair of speakers for £6. However, given the fact that any of the big hire companies will rent you top of the range speakers, costing several thousand pounds EACH for £25 - £35 a box, you would have to ask yourself why you would want to rent a pair of Mackies for £100, as has been suggested.

hope that helps

[TONYTIGER]

Is there a general consensus amongs members of a "Rule of thumb" on hire rates?

The way I'm thinking...is it as a percentage of the purchase cost?

So if a pair of speakers cost £1000, you hire it out at 10% (£100), which means they paird for themselves in 10 hires.... or do you do 20%, 30% etc etc.

Whats your thoughts guys?

Cheers

Steve

:beer1:

A pair of speakers as you have stated between £25-£ 30 per day per week £ 60 max.If powered a fraction more.

[Pe7e]

A pair of speakers as you have stated between £25-£ 30 per day per week £ 60 max.If powered a fraction more.

No disrespect Tony, but this gets my vote for the most inaccurate in the thread so far. A pair of Mackie SR1530z speakers would easily go out at £60 - £65 per day into a pub ect. on a private hire to joe public, you can expect a bit more. Delivery and collection is extra if required

[Corabar Steve]

I have Terns I'd be interested to see how many people hire them
:sj:

[Dynamic Entertainment]

I'd be interested to see how many people hire them
:sj:

Yeah yeah...smart.... :D

[Corabar Steve]

You can say arse if you want :sj:

So are they like an alternative to doves at a wedding or something?

[Dynamic Entertainment]

I was thinking of a word that rhymes with cat...but has 4 letters.....but arse will do :D

[TONYTIGER]

No disrespect Tony, but this gets my vote for the most inaccurate in the thread so far. A pair of Mackie SR1530z speakers would easily go out at £60 - £65 per day into a pub ect. on a private hire to joe public, you can expect a bit more. Delivery and collection is extra if required

Please read the post this is attached to "pair of £ 1000.00 Speakers that would not even cover a pair of decent small powered jobs.
And there was no mention if they were passive or powered so that was a spot on quote.

By the way i have be running my small rental house since 1969 and there are not many out there that have been going that long ,yes we are small as we have only about £ 200.000 of rental stock very small fry in these days, and i think i know a bit about this game.

As i said a pair of speakers costing £1000 would return around £ 30 per day dry hire.

As stated you can hire Mac 250 which costs more than the speakers for around £ 40 per day.

Please have a look at some proper rental house sites on the net many have there rental prices there to read and you might get some idea of how keen the market is.

In the summer for small festivals i can hire in a 20-25k rig with 2 engineers and full 4 way fold back for around £ 750 a day i would be mad to invest many thousands when it is so cheap.

As advised 3% is around the right mark.

[Dynamic Entertainment]

Please read the post this is attached to "pair of £ 1000.00 Speakers that would not even cover a pair of decent small powered jobs.
And there was no mention if they were passive or powered so that was a spot on quote.

By the way i have be running my small rental house since 1969 and there are not many out there that have been going that long ,yes we are small as we have only about £ 200.000 of rental stock very small fry in these days, and i think i know a bit about this game.

As i said a pair of speakers costing £1000 would return around £ 30 per day dry hire.

As stated you can hire Mac 250 which costs more than the speakers for around £ 40 per day.

Please have a look at some proper rental house sites on the net many have there rental prices there to read and you might get some idea of how keen the market is.

In the summer for small festivals i can hire in a 20-25k rig with 2 engineers and full 4 way fold back for around £ 750 a day i would be mad to invest many thousands when it is so cheap.

As advised 3% is around the right mark.

The £1000 was just a ball park running figure to illustrate a point.

The speakers in question were £1600 a pair to purchase, powered, delivered, installed, then removed when done...

So you would still stand by the initial £25-£30 per day (even for boxing day?)

Incidentally, our nearest "proper" rental outfit is about 35 miles away.... ;)

[Vectis]

Incidentally, our nearest "proper" rental outfit is about 35 miles away.... ;)

Then get a quote from them for hire + delivery, and knock 10% off :p

[Dynamic Entertainment]

Then get a quote from them for hire + delivery, and knock 10% off :p

Already done that (i know the company...they are an absolute rip off). Im not wanting to give too much away yet mind :p

[TONYTIGER]

The £1000 was just a ball park running figure to illustrate a point.

The speakers in question were £1600 a pair to purchase, powered, delivered, installed, then removed when done...

So you would still stand by the initial £25-£30 per day (even for boxing day?)

Incidentally, our nearest "proper" rental outfit is about 35 miles away.... ;)

No but that is not what was stated in the post i replied to,as for wet hire we charge £ 45 per hour + fuel the Mackies around £ 60 per day but you would want to add a premium for Boxing Day.

Don,t get be wrong Hire can be a good side line and its all about location location just like a pint of beer in my area there is not much competition but then again not many chimney pots which keeps prices low.
I find that its the simple small things that do best.

My best sellers.

1 Numark 19" mixer Twin CD Player pair of Tapco Thumps 1 Mic pair of speaker stands all leads inc i pod lead £ 45 per day dry hire.

8x par 56 ray lights 2 stands and foot lite unit with leads £ 40 per day dry hire

These are the simple things that go out week after week.

[Dynamic Entertainment]

Ok, time to reveal figures. I know for a fact that the hire comany would charge £75 for a pair of Mackie SRM450v2 with speaker stands...but you have to collect and drop them off (70 mile round trip).

I quoted £50 for the SR1530z (which are floor standing so is better for a heaving Boxing day crowd)...to be told its too expensive :).

Mind you the same pub is paying for one of the local club DJs, who is passing the work on to a bedroom dj and they are happy enough, so... ;)

[TONYTIGER]

Ok, time to reveal figures. I know for a fact that the hire comany would charge £75 for a pair of Mackie SRM450v2 with speaker stands...but you have to collect and drop them off (70 mile round trip).

I quoted £50 for the SR1530z (which are floor standing so is better for a heaving Boxing day crowd)...to be told its too expensive :).

Mind you the same pub is paying for one of the local club DJs, who is passing the work on to a bedroom dj and they are happy enough, so... ;)

As i said hire is a very difficult market csg,s post was spot on i would think that most members that dabble in hire are involved with the wedding market which has no bearing on a real rental house set up which takes a long time to gain a foot hold and become profitable your best sticking to what you know about,but best of luck in the future if you continue with this venture.

[Solitaire Events Ltd]

My best sellers.

1 Numark 19" mixer Twin CD Player pair of Tapco Thumps 1 Mic pair of speaker stands all leads inc i pod lead £ 45 per day dry hire.

8x par 56 ray lights 2 stands and foot lite unit with leads £ 40 per day dry hire

These are the simple things that go out week after week.

Really?

I don't do week after week hires and don't do dry hire either, but I have a similar package that goes out for £150-£200+Vat. Perhaps I'm over charging? We do deliver, set up and collect though.

[TONYTIGER]

Really?

I don't do week after week hires and don't do dry hire either, but I have a similar package that goes out for £150-£200+Vat. Perhaps I'm over charging? We do deliver, set up and collect though.

Yes really,i find dry hire a very good money earner and as you have said your not a rental house and as i did say we charge £ 45 per hour so add that on to a simple system it works our about the same.

Happy Christmas Tony