Should I charge for equipment rental?

T

Tokpaler

Active member
Say you're small production outfit and you own a few lighting and video equipment and you're hired on to do a corporate video of sorts. Is it normal business practice to charge your client for your own equipment that you'll be using?

I'm asking because when I was still doing photography, all I ever charged them was a professional fee and I was wondering if the same was still true in the case of video.

PS - wasn't sure where to post this topic.
 
If you paid for it, and you're using it, charge for it.

That can take many forms, from a line per-item useage/"rental" fee in addition to your unequipped rate, or a blanket higher rate than you'd otherwise charge unequipped. I use a base "equipped" and "unequipped" rate, which honestly ranges all over the place for each depending what I think I'll need to do or have to get the job done.
 
Whatever you do, make sure the client is aware of the arrangement prior to invoicing them. Nothing burns bridges better than surprise line items on an invoice.

How you charge is largely up to you, especially if you're a one-man-band type of operation. You could fold your equipment usage fees into your standard fee like you do for photography. However, separate line items for equipment usage (e.g. separated from your own service fee) can help the client see what they are paying for. It's not uncommon for professionals to rent some or all of the equipment for a job because the equipment list largely depends on the project's needs, so passing these costs on to the client is standard practice.

Finally, it may be simpler to group equipment into "packages" on the invoice so that you don't need to list out every single item individually on the invoice. For example: "Camera Package A" or "Grip Package (Small)", etc.
 
Definitely charge for the equipment, just don't overcharge. Nothing over what it would cost to rent. Part of this is so you can be hired separate from your equipment, part of it is for you to better handle the upkeep and depreciation. The biggest part, for me, is that if you bundle yourself with the equipment clients will only ever allow you to shoot with equipment you own. If rental rates are being charged regardless, you'll have a much easier time shooting with the right equipment for the project rather than what happens to be in your garage at the time. This gives you the ability to scale to the project's requirements, or just use their equipment if they have it.
 
Cassius said:
Definitely charge for the equipment, just don't overcharge.
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Production sound folks charge anywhere from 40% to 75% of what their gear would cost to rent from a large rental house. They charge for their standard rental package(s) and charge extra for whatever is over and above the standard package.
 
To beat a dead horse, yes, of course.

if it helps clarify think of it this way: if the client was doing this on their own, theyd have to rent/buy equipment, right? So when they hire you, they are also, in essence, renting your gear.

Accordingly, i have separate fees for myself (i.e "labor") and gear. That way if they DONT need gear cause theyre providing it they get charged less and vice versa. And gear is further subdivided by actual pieces (cam incurs this fee, each mic is this fee, lights are this fee, etc.). Allows you to add and subtract to/from the equipment package and adjust fees accordingly.

Another thing to consider that's a little more controversial, at least to me, is a markup on rented gear. Some folks when renting will inflate the fee for invoicing purposes by 25% or so, which I find a little sketchy. So on the bill your $300/day cam rental is now $375. I understand this practice if your time is so valuable that the time it takes to go rent the gear and check it out etc. is literally making you lose money elsewhere (maybe you're a busy busy editor), but it still seems a little weird to me. However, I am not one of those folks and so I will only add a small amount to make up for gas/mileage dealing with the rental 'cause that's a tangible cost to me.
 
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Josh Bass said:
Another thing to consider that's a little more controversial, at least to me, is a markup on rented gear..
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Absolutely reasonable IMO - unless you are charging prep days.

I also mark up hard drives and other consumables. Because its all admin/time/cashflow managing this stuff if you hold it 'in stock'.

I had a client query my hard drive cost the other day compared to an online price. I offered them to get that HD sent to me (5 day wait) or bike/courier over one of their own (£50 fee). Quickly they realised that I had a brand new hard drive 'in stock' for them was great service and value at just a £20 markup from the cheapest online prices!
 
Great advice guys! Thanks!

I like the idea of charging 40% to 75% of what the rental houses would normally charge. I can cover the upkeep and depreciation of my equipment and at the same time still remain competitive enough to build a relationship with the client and you.

The whole dilemma now is - in our neck of the woods, the industry has never been standardized, one rental house might charge more or less than the other for the same equipment so rates fluctuate inconsistently. Same goes with labor fees, professional fees, etc...
 
I would search the country for gear fees and kind of loosely average it out. You should see some consistency if you search a wide enough region As for labor that seems to be more market-specific. Some places may support the $1500/day cameraman. Some may not. There are all sorts of formulas and methods for determining your rate. In my opinion it's a combination of skill/experience level, what your market will bear, and what you need to make an actual living. Maybe you can find other folks' rates in your area and see what the output/skill level of the guy charging $200 for an entire video project looks like vs the guy charging $10000. See where you fit in there and charge accordingly.
 
You really have to judge based on your own market and clientele.

In my case I don't charge for my gear unless I need to rent. My day rate is $1500 whether you want my kit or not. Clients hire me for my experience and experteese, not for my gear.
 
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Now here is another approach.

Ive got a heap of kit. But there is a maximum amount that I will use unless they hire an assistant too. So there is a mark up there.

S
 
Tokpaler said:
Say you're small production outfit and you own a few lighting and video equipment and you're hired on to do a corporate video of sorts. Is it normal business practice to charge your client for your own equipment that you'll be using?
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You'd charge a "professional free," which would include your equipment costs. That is to say, if you're using professional equipment, your costs are covered in your pricing, whether you own the equipment or rent it.

Hope that helps,
 
David W. Jones said:
You really have to judge based on your own market and clientele. ...... Clients hire me for my experience and experteese, not for my gear.
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I agree.


I tend to steer away from contractors who tack on meaningless rental fees for equipment unless the package is substantially expensive. I have no issues with "hey, this Alexa kit will cost X per day" but for an HD DSLR with some ancillary equipment, I'll try to negotiate that number to zero. I see a lot of the same advice over and over that contractors must charge for equipment but thats not always the right move. A producer or client looks at one number - the total amount hiring you will cost, no mater how you line item it. If your dealing with a seasoned producer or client that know video costs, these factors become very important in your bidding process. At least for me, its distasteful if the numbers are "greedy" especially if the work shown isn't up to par.
 
Thanks for asking this. I'm glad to hear the responses to see what people do.

I have a standard production rate of XXX/hr. That includes a camera, light kit, tripod and microphone.
If the job calls for a jib then I add $XXX to the hourly rate.
If it calls for another camera and operator than I add $XXX to the hourly rate.
If it calls for a location sound kit (recorder/blimp/boompole/mic) and operator then that is billed at $XXX an hour.

That way it is clear cut up front that the job is hourly and consists of time, gear and manpower. It also helps keep us in check so we price things consistently.
That being said, I have a day rate and half day rate available as well.
 
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