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Author Topic: Equipment Rental && Rehearsal Space  (Read 5890 times)

trace knight

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Re: The Field of Broken Dreams
« Reply #20 on: January 04, 2010, 09:35:35 pm »

I don't like being a nay sayer, but have you noticed how recently in the marketplace ads, how many people are getting rid of their gear,totally or really downsizing, because it isn't making money, it's unfortunate, but I'm having a rough time as well, it's called a bad economy, seems that this past holiday season, most pa's are/were sitting, while dj's were working, but I bet they were down too...........just my view
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Tim McCulloch

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Re: The Field of Broken Dreams
« Reply #21 on: January 04, 2010, 10:30:11 pm »

Trace, your observations are spot on.  I've watched a half dozen or so firms close in the last year and have seen probably a dozen liquidate assets for pennies on the dollar to have operating capital for another couple of months.

What drove home the recession: rental prices for staging and roofs went down.  Significantly.  Lighting was also down.  The things that have paid the bills are now minimally more profitable than audio.  That doesn't bode well for the industry as a whole and will be death to a number of regional and local providers.  That said, some parts of the USA will see improvement in 2010.  Lets hope we're in them!

Tim "Grim" Mc
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"Will you stand by me against the cold night, or are you afraid of the ice?" Crack The Sky

Dave Rickard

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Re: The Field of Broken Dreams
« Reply #22 on: January 04, 2010, 10:43:34 pm »

trace knight wrote on Mon, 04 January 2010 19:35

I don't like being a nay sayer, but have you noticed how recently in the marketplace ads, how many people are getting rid of their gear,totally or really downsizing, because it isn't making money, it's unfortunate, but I'm having a rough time as well, it's called a bad economy, seems that this past holiday season, most pa's are/were sitting, while dj's were working, but I bet they were down too...........just my view

I occasionally rent systems to a great guy who runs a DJ company.  His shows were down a bit this year too.
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Dave
Yorkville dealer

"The wrong piece of gear, at the right price, is still the wrong piece of gear."

"If you don't have good stuff at each end of the signal chain, (mics and speakers) what you use in between is just turd polish."--Dave Dermont

(BJ) Benjamin Fisher

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Re: The Field of Broken Dreams
« Reply #23 on: January 06, 2010, 05:09:55 pm »

After more research and thinking, I think I have changed paths a bit. Starting off with 2 rooms, the option to rent hourly/daily/weekly/monthly, and providing backline. Anymore discussion would be great
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BJ Fisher
Stealthy Sound
Columbus,OH

Adam Schaible

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Re: The Field of Broken Dreams
« Reply #24 on: January 06, 2010, 05:15:40 pm »

One thing I've seen -- not sure if this is even in your situation.

I used to rent a space that was at a guys house .. but it was a building a good distance from his house.  He had a studio/etc in it.

It really didn't cost him anything extra so it worked out for him.  That's the way I could see this working.
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(BJ) Benjamin Fisher

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Re: The Field of Broken Dreams
« Reply #25 on: January 06, 2010, 08:00:51 pm »

Adam Schaible wrote on Wed, 06 January 2010 16:15

One thing I've seen -- not sure if this is even in your situation.

I used to rent a space that was at a guys house .. but it was a building a good distance from his house.  He had a studio/etc in it.

It really didn't cost him anything extra so it worked out for him.  That's the way I could see this working.

I'm renting a house, so I dont see that as being an option for me
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BJ Fisher
Stealthy Sound
Columbus,OH

Art Welter

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Re: The Field of Broken Dreams
« Reply #26 on: January 06, 2010, 09:05:34 pm »

benjamin fisher wrote on Wed, 06 January 2010 15:09

After more research and thinking, I think I have changed paths a bit. Starting off with 2 rooms, the option to rent hourly/daily/weekly/monthly, and providing backline. Anymore discussion would be great


You should lose less money attempting to rent two rooms than five.
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(BJ) Benjamin Fisher

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Re: The Field of Broken Dreams
« Reply #27 on: January 06, 2010, 09:32:56 pm »

Art Welter wrote on Wed, 06 January 2010 20:05

benjamin fisher wrote on Wed, 06 January 2010 15:09

After more research and thinking, I think I have changed paths a bit. Starting off with 2 rooms, the option to rent hourly/daily/weekly/monthly, and providing backline. Anymore discussion would be great


You should lose less money attempting to rent two rooms than five.


Thanks.
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BJ Fisher
Stealthy Sound
Columbus,OH

Dick Rees

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Re: The Field of Broken Dreams
« Reply #28 on: January 07, 2010, 10:45:30 am »

benjamin fisher wrote on Wed, 06 January 2010 20:32

Art Welter wrote on Wed, 06 January 2010 20:05

benjamin fisher wrote on Wed, 06 January 2010 15:09

After more research and thinking, I think I have changed paths a bit. Starting off with 2 rooms, the option to rent hourly/daily/weekly/monthly, and providing backline. Anymore discussion would be great


You should lose less money attempting to rent two rooms than five.


Thanks.


Listen to your Uncle Art.  It's not about sound at all, it's about business.  All the time you've spent providing sound to this point has had a bit of a business component, but dollars to donuts your focus was learning how to do sound and getting some gear.  This is not business.

Take some time to learn how to run a business before you jump in and do it the hard way.  If you're lucky enough to have some substantial financial reserves/backing, spend a little of it on business school.  Otherwise you may well end up spending all of it on your education in a way you'd rather not remember.
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Charlie Zureki

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Re: The Field of Broken Dreams
« Reply #29 on: January 07, 2010, 12:24:31 pm »

benjamin fisher wrote on Wed, 06 January 2010 16:09

After more research and thinking, I think I have changed paths a bit. Starting off with 2 rooms, the option to rent hourly/daily/weekly/monthly, and providing backline. Anymore discussion would be great



  Hello,

   Trying to be kind..... I think you're missing the point that it has been done, and is neither profitable nor does it make business sense to pursue this as a profit center.

   If you had an existing building, were currently providing profitable, external services from your building (lighting, Audio, Staging,etc..) and had "extra space" ... it may, in the right market (NY,LA, Atlanta, Chicago, Nashville) pay for itself.

   But, I doubt that you'd recognize and profit from it.

  In the mid 1980's we had built some rehearsal rooms, 2 large & 1 small , with on-site storage lockers for the renter's gear.

 Each room had a basic, prewired sound system, with mixing console. We charged 65 dollars a month for each contract, giving them each 14 hours per month to rehearse. (OR charging $4.60 hr)

 24 hrs. x 30 days = 720 total hours x 3 "studios" = 2160 studio hours divided by 14 hours = potential of 154 customers

 154 customers x $65. =  $10010.00 a month

 + the rental of the 12 storage lockers @ $25. = $300.

  (we thought we'd get rich)

 We never recouped the cost of building the Storage lockers, much less equipping the three studios, or even building the studios.

 the maximum amount of customers we had for any one month, for rehearsal space was about twelve. We rented 5 storage lockers.

It never made a profit, it never paid for it's cost or upkeep.
We had to have an employee there 24 hours a day. (for those late night sessions) The additional insurance put us in the red on these rental studios the first day. The additional costs to the heating and electric bills....

 Of course we shut it down after about three months.

 We found that Groups starting out are not willing, nor do they have the funds to pay for a rehearsal studio. They'll practice in someone's garage, basement, etc..

 Good Luck,

 Hammer

 

 

 


 
   

 

 

   
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