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  • Hey all, just changed over the backend after 15 years I figured time to give it a bit of an update, its probably gonna be a bit weird for most of you and i am sure there is a few bugs to work out but it should kinda work the same as before... hopefully :)

now that prices have gone down what happens to the rental business?

I dont think prices will change too much, the value of a rental camera comes from different factors, the actual physical price of the camera is just one factor that goes into the whole thing....different cameras have different applications and their places within a film shoot and rental house.

It all comes down to what the customers ask most for, how accessible and affordable accessories are, how often the rental house can actually make the gear work for them and so on. why should they reduce the price fo rental gear if they still can get the rates they used to get 2-4-6 weeks ago ? just because the same camera model is now a little cheaper, it doesn't actually lessen the quality of the gear and what you can achieve with it.
 
Here we go... AGAIN!!!....


Rental rates are determined by supply and demand more than anything else. Most major markets already have cameras renting for less than their ideal rates as it is these days. EPIC has lost a lot of it's rent-ability or ability to charge a premium in several markets, mine included, because the Scarlet fits the needs of most productions.


That said, the price reductions only affect the brains themselves. Most any camera rental package includes other modules and accessories and for productions of significant size, the camera brain is just one of many line items on the rental invoice. In the grand scheme of things, I don't see it having a huge impact. I think anyone who drops their rental rates at this time is making a knee-jerk reaction to a technological price adjustment. If we look at rental and lease rates and practices for other volatile tech items like computers, printers, etc.. those rental business don't tend to make reactionary price changes to follow the market. They let the supply/demand curve dictate what they charge.

Additionally, the release of Dragon is looming. EPIC customers receive it before Scarlet customers, so that will boost the market value or rent-ability of EPIC cameras equipped with Dragon. If you buy an EPIC now, you will have $25K in the brain after upgrading to Dragon, so that should be taken into consideration as well.

Anyway, there are lots of different ways to consider this and different people and companies have different business models to fit different markets. The ones who will be affected most are probably the owner/operators who derive the bulk of their income off renting out a small camera kit and they rely on a certain degree of perceived value to justify their rates. I feel for these guys to some extent because the price cut does affect that business model. However, business and markets are always changing and people need to evolve their services to adapt. Unfortunately, this is a harsh reminder that basing a business model around the purchase price or perceived value of a volatile piece of technology is never a wise decision. Not to sound like I'm lecturing, but I guess maybe I am...
 
Remember that its more then just the camera that goes into a package - ssd/tripods/filters/lenses/etc all play a part in the rental price. Some of those items cost more then the camera and need to make their money back as well.
 
Vinit Borrison said:
Remember that its more then just the camera that goes into a package - ssd/tripods/filters/lenses/etc all play a part in the rental price. Some of those items cost more then the camera and need to make their money back as well.
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Exactly. It seems to me that since cameras have achieved a level of rockstar fandom in the past few years, many rental houses have adopted a practice of using the cameras to woo in customers. Then they practically let the cameras go out the door for "free" with larger rental packages anyway. The foundation items of larger rental houses are things like stands, apple boxes, dolly track, lights, etc.. Stuff that has changed very little over the last 30+ years. These continue to be staples in the industry and rent to all sorts of productions, regardless of which cameras get used.
 
We just dropped our Epic "body kit" rate to 750, and the Scarlet down to 350.

Body Kit include, power and Bats, side handle, viewfinder or touch screen, lens mount, (2) 64gb cards, and a reader.

So it goes.

good luck, ER
 
Jonathan Lee said:
does the rental side of things stay the same in terms of prices or does it drastically change?
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Not for me....
My package went $100up, I just added extra REDone to my Package, Now My client can take an advantage for 2nd/back-up body on set.
 
People Forget that Even Though the price of the RED ONE went Down drastically , You are buying a USED camera. The Scarlet and EPIC's Reason for Lowering Cost is Improved Production Cost. This does not Mean the Value of the Rental Side Would Have to Change, They are infact Still Very Expensive Cameras, heck any Camera above 2000 dollars is Very Expensive to Most Renters, that is why they Rent. I would not Change the Price of the Cameras on the Rental Side, People will pay for it. I Purchased a BT RED ONE, and up to Now I have already Spent 1600 dollars More to Make the thing shoot, and I still Need a Battery Solution. So, I would Pay to Rent a Shoot ready Camera any day of the Week before I Go Neck Deep in Debt to Make one (although Cheaper) work.
 
Glad I stopped renting my equipment once I got the Epic. Just not worth the hassle, especially now that folks would be beating it like a borrowed mule. Let them bang around the stock at the local rental houses.
 
"my scarlet 5 dollar 5 dollar" lol
 
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