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Author Topic: Formula for pricing jobs  (Read 5799 times)

Brad Weber

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Re: Formula for pricing jobs
« Reply #10 on: February 27, 2011, 09:57:59 am »

TEN PERCENT!!!

Holy crap, Ivan. So essentially your (or the corporations' you mention) gear is depreciated to minimal usefullness/value once used TEN times??? So can I buy a few of those worn out Danleys for pennies on the dollar now?

In the past, here and elsewhere, I have usually read 2% of gear investment PLUS a reasonable labor rate PLUS expenses (gas, vehicle wear & tear, food & lodging, plus a portion of other overhead costs like insurance, storage rent, ect.). How you add in shop labor and transportation labor time is up to you. Even figuring this way adds up a lot.
Keep in mind that in venues like hotels and convention centers the venue may take a percentage of the billing, they are not providing you the work, space in the venue, etc. as charity but in many cases rather as a potential profit center.  You also can't turn down or defer work there in order do to other work or due to inadequate inventory or personnel and have to be ready to support last minute requests, so even if you have no billable work for days you may have to have inventory and personnel available on site at all times.  You may even have to supply services for that venue's internal events for a reduced charge if not for free.  All of those things have a cost that has to be recovered in the billings.
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James Feenstra

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Re: Formula for pricing jobs
« Reply #11 on: February 27, 2011, 01:40:04 pm »

Think of a tool rental place.  How much do they charge?  And do they deliver it and operate the tool, then clean it up and return it for the rental rate?  NO, there is additional charge for that.  Yet we typically can't get anywhere near the day rate they do, and we deliver and operate it for free.
as an example i rented a hammer drill for some home reno work i've been doing the last week..

$67/week to rent...after the first week i returned it once i looked at the store price- $120 + tax

went and bought myself one instead, so now i have a new tool that will get used frequently :) it was way cheaper in the long run to buy than continue renting till the jobs done

some companies that frequently rent gear do the same thing...if they're going to be renting for more than a few weeks on a mid range priced item, they'll just purchase it instead
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Ryan McLeod

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Re: Formula for pricing jobs
« Reply #12 on: February 27, 2011, 04:17:17 pm »

[quote author=Ivan Beaver link=topic=1004.msg5073#msg5073 date=

The other thing in normal businesses is that they don't have hobbiest (bands/part time DJ's etc) that compete for businesses that have to pay rent-insurance, have a business license etc.
[/quote]

... Or as I always call it "you can't compete against someone who can't lose".
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Frederik RosenkjŠr

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Re: Formula for pricing jobs
« Reply #13 on: February 27, 2011, 08:20:45 pm »

Heh - just calculating what I'm charging for the gear I'm bringing. I get around .5% of the retail price... (that's POINT five).
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Ivan Beaver

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Re: Formula for pricing jobs
« Reply #14 on: February 27, 2011, 09:10:00 pm »

Heh - just calculating what I'm charging for the gear I'm bringing. I get around .5% of the retail price... (that's POINT five).
That's why the "corporate guys" don't bother with normal club or concert work.  They are actually getting a decent return on their investmnets.
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Sheldon Harris

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Re: Formula for pricing jobs
« Reply #15 on: February 27, 2011, 10:02:04 pm »

That's why the "corporate guys" don't bother with normal club or concert work.  They are actually getting a decent return on their investmnets.
corporate work is quite easy on the gear in comparison to clubs and concerts too. great hours, plenty of "off time" and usually,(the best for last) no problem getting paid. most times the checks i received were dated days before the event ended!
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Mac Kerr

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Re: Formula for pricing jobs
« Reply #16 on: February 27, 2011, 10:24:31 pm »

corporate work is quite easy on the gear in comparison to clubs and concerts too. great hours, plenty of "off time" and usually,(the best for last) no problem getting paid. most times the checks i received were dated days before the event ended!

The gear on the corporates I do gets treated just like a tour. It gets loaded in and out repeatedly, rides around the country in the back of trucks, and is usually handled by people who have no connection with the owners, so they are not as careful as they might be with their own gear.

Once in a while an event has reasonable hours, but 7am to 10pm is more common lately, with 1/2 hour meal breaks. Time off is very rare, although I did have a dark day in Vegas a couple of weeks ago.

Getting paid is pretty reliable if waiting 60 days is OK. Regular clients sometimes pay quickly (30 days), but 60 is getting more and more common, and some are 90 days.

It's a good thing we get paid well. Although I think 2%/day and 5%/wk are at the high end of rental rates.

Mac
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Tim Talbot

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Re: Formula for pricing jobs
« Reply #17 on: February 27, 2011, 10:37:38 pm »

corporate work is quite easy on the gear in comparison to clubs and concerts too. great hours, plenty of "off time" and usually,(the best for last) no problem getting paid. most times the checks i received were dated days before the event ended!

Really...... i find there the worst for not paying on time and you just get sent around the houses 100's trying to track down the accounts manager ARRR !!

We give 7 day terms now and over the last two months it seems to be working quite well :) There still always late paying but we have been getting paid within 14days....

 

ProSoundWeb Community

Re: Formula for pricing jobs
┬ź Reply #17 on: February 27, 2011, 10:37:38 pm ┬╗


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