What’s your bottom line for AV? How much does event AV cost? Does the brand of equipment matter? How can you ensure you’re getting a fair and reasonable price?
Will Curran take you through the event AV cost? He will cover the various complex aspects, including labor rates, why brand matters, Why new equipment may cost, and video, lighting, and scenery expenses, among others. We are confident that after watching this week’s Whiteboard Wednesday, you will have a clearer understanding of how to approach event AV.
What is the cost of Event AV?
The most frequent question I am asked is, “How much does event audiovisual cost?” Event AV is a complex topic. It’s not just a coincidence that these quotes are long and full of equipment. They also include different labor for AV. Even though every situation is unique and event AV can be complex, there are some general principles that all quotes should follow. Understanding them will give you a good idea of the cost of event AV.
Equipment: the 10% Rule
Most of the event budget is spent on equipment. Certain principles govern equipment. One of these principles is the 10% rule, and it applies to almost all AV companies.
The 10% rule is that your AV provider will charge you 10% off the price of a piece of equipment. If you spend $1,000 on a camera or a speaker, for example, the AV company will charge you 10%. They usually make their money on equipment in 10 rentals or events.
The percentage can vary between 8 and 15% depending on the equipment. The rate depends on how long the equipment will be in their store.
Older Equipment Costs Less
Chances are, if you ever notice a mixer from one AV company is cheaper than another company’s mixer, and they charge you less for it, you may be paying more for a lower-quality model. You can find out if you search for the model number that the mixer they are charging you for was released in 2000, while the newer model just came out last year.
Renting out older equipment has already paid for itself. The 10% rule is also based on the life expectancy of the equipment. Projectors, for example, don’t fall under the 10% rule due to their short lifespan.
Technology becomes outdated very quickly. Projectors are also prone to breaking very easily. This means that AV companies are looking to get their money back quickly. The AV costs can reach up to 20% in this case.
Event Audio Visual Cost: Brands of Equipment Matter!
This is a great analogy: Chanel versus Walmart. The two brands are in no way similar. Walmart may offer a great deal, but that doesn’t mean it is the same as Chanel. This concept also applies to audiovisual equipment.
More expensive brands tend to be better quality. If you ever find yourself wondering why one company charges $1,000 for a piece that another AV provider is charging $4,000 for, you can look at the brand of the company. Are they reliable? They have been in business for a while. Are they able to handle large-scale events and festivals?
Ask your AV provider about the different brands. It’s not your job to do all of this. You can ask them why they selected that brand. Is it better than the other? Is it better? Does it sound better? Will it last longer? What features does it have that I can use to achieve my goals?
Video is Expensive
When it comes to event audiovisual costs, video is the most expensive. Why? Video is sensitive. It’s important to use the right switcher and adapters. Audio has been around for a lot longer. You’re likely to spend a large amount of money on video if you want to do something ambitious like multiple screens or LED screens.
Lighting
Lighting is another area that you will spend a lot of cash on. Lighting equipment changes quickly, but not at the same rate as video. Moreover, the things that we buy tend to last longer. LEDs are now widely used in lighting fixtures. They’re no longer as expensive. Before, the cost of event AV increased if you chose an LED light over a conventional one.
Audio Costs
Audio is the next area where you’ll spend your AV budget. Audio has not changed in the past. A concert of 1,000 people in the past is the same as a concert of 1,000 people today. Newer and cooler things are always being released. Audio is less expensive because it lasts longer than other items. Speakers that were used ten years ago still work today.
Labor Costs
There are several concepts to understand when it comes to AV labor. These include labor rates, hourly rates, and labor rates.
Rates of Labor
The expected labor rate can range anywhere from $50 to $100 per hour. This depends again on your company and region. You might find that the city where you live has a high cost of living. The $100/hour workers are usually highly educated and advanced. Usually, they are your technical directors and producers.
Engineers, technicians, and people who work on the ground to build sound systems, tune sets, etc., are closer to $50/hour.
Full Day Rates
You may be thinking, “Oh, cool.” You might be thinking, “Okay, cool.” But there is another rule you should know: the 10-hour rate. All services are billed on a daily rate or half-day rate. In California, however, a “day rate” is actually eight hours.
Talk to your AV provider. You can ask them how many days are in one day rate. Say that your conference lasts seven hours. You’ll be billed not only for the seven hours but also for 10 hours. They always round to the nearest tenth of an hour.
Half Day Rate
You can also get half-day rates. Five hours is half a day. When it comes to billing AV work, everything is usually billed as a half-day. If your event lasts 12 hours, round it up to 15. If your event lasts 28 hours, round it up to 30.
You can make some rough calculations when it comes time to pay for your labor. If you are in an expensive market, for instance, you could always set a high budget. You may budget $85 an hour if your conference will last 30 hours. Say you allocate 10 hours to setup and another 10 hours to loading. You’re now at 50 total hours.