Rates bottoming out

[GlennChan]

Which raises the question - why are betacam rental rates so high?

For some folks, the workflow is there. Hand off tapes and you are done, and the editor knows how to deal with betacam. For simple stuff you don't need to shoot 4K (e.g. if you want to go shoot some interviews, testimonials, etc.).

For their needs, it's not like Red is vastly superior. (Or even superior, because now you have to figure out the workflow. And the editor may be on a vintage Avid or whatnot.)

The rates seem a little high to me though.

 

[Poi Boy]

do people still rent betacams ?
-A

 

[Costelloe Michael]

Guys,

I think what you're missing is that the rates are as reflective of the person who is setting them as they are of the technology they are using to shoot on. As I said in my original post '1% is probably a fair reflection of this guy's experience in the industry', some of you seem to think I concur with that rate. I don't. And personally I shoot commercials and features for a 'fair' rate. My list of clients in 2008 included Adidas, Nike and Ferrari.

However, a guy down the road has taken delivery of a red recently. (He phoned me up to ask me to show him how to use it!) He used to shoot with the sony 500 series, local government content etc. Kit value probably around £10,000, now he has Red, kit value around £18,000. I can see him trying to undercut my market to get his camera out. He's a part time hobby-ist and will love to make money out of his purchases. So now he shoots better looking local government content maybe, I don't think they will up his rate for gear though.

I use 35mm, S16mm and occasionally use Super 8 for spots and I also have a 5D MkII. I still charge my full rate for commercials though even though the gear changes in price. That's because I have set clients who pay for the product I produce and not just the sytem I produce it on. It so depends what part of the market you are in and what other gear you have got. Red as part of a camera package with UP's and a full Arri set-up will hold it's value. A single body with some Red AKS and an 18-50mm will find itself fitting into a different market with a lower price.

I'm aware that there are guys out there offering the camera for a low price. That's because Jim has made this system pretty much affordable for everyone. Should I be worried that that guy down the road goes out for £250 a day? Whether you're on top looking down or at the bottom looking up if you are busy using your Red camera, enjoying your work and providing a good product to the client and making money good luck to you.

Mike C

 

[Jeff Kilgroe]

Mike C has it right...

Had a similar situation here. I trained another local RED owner back in November. He's now under-cut me on some rental jobs and not just by a little, by A LOT, like he's 65% cheaper. Whatever.

I don't really care that much... He's just offering rental of a basic kit and calling himself a RED camera tech / DIT. He's spending most of his weekends renting his RED out to the indie crowd, hoping that a little cash here and there will help pay for the gear. Whole different mindset than where I or many others here come from. In fact he's sent some work my way a couple times when he couldn't supply the level of kit needed for certain jobs.

The RED One is very affordable and makes room in the market for several levels of productions and rental models. I could probably keep my camera a bit busier if I lowered my rates, maybe generate some more cash flow. But I'm not in this to be a rental house and every moment someone else is using my camera, that's time I don't have it when I think of something I want to try or some client calls me and wants something done ASAP. IMO, buying $40K worth of equipment (give or take) and trying to earn money by renting it out, just seems silly if you have no real value or services to bring with it.

 

[Edgar Pitts]

I have noticed alot of larger rental houses dropping their prices significantly - but still around $800 a day with the basics and an 8 day month as the best price, and only if theres no demand.

Is an 8 day month standard for long term rentals?

At $800, that is $6,400 per month, which IMHO is pretty fair rate for the basics. I thank the days per week/month is what confuses some people. $6,400 is only $320 per day if you using a 5 day week.

Edgar