A common question I get asked by instrument owners upon joining Fretish™ is, “what should I price my [guitar brand] [guitar model] at?” Sure, there are some simple formulas one could apply:
Scenario 1 – My guitar is an unexceptional instrument. It works properly, produces quality sound and has a standard finish. But, there is nothing unique or special about it. If this is the case, then consider a nightly price somewhere between 3% – 5% of the instrument’s retail value. Example: $1,000 Retail Price for American Made Fender Stratocaster * .05 = $50/night
Scenario 2 – My guitar is an exceptional instrument. Not only is my guitar rare, it is a beautiful sounding instrument. A work of art with extensive purfling and magnificent detailing. In this situation, one could charge potentially a third of the instrument’s retail value. Example: $6,000 Retail Price for Gibson L-5 * .33 = $1,980/night
Scenario 3 – I, the instrument owner, am guitar legend Edward van Halen. In this case, the formula is P=WTFYWTPI* (* – Whatever The F**k You Want To Price It.)
But, for everyone else who is not a guitar legend, there are nuances to setting a rental price. Consider the following when pricing your guitar(s):
- Determine your goals. Are you a guitar builder trying to get your instruments into the hands of as many players as possible? Consider pricing it on the lower end of the spectrum. One guitar builder on Fretish, Peter Occhineri, takes a very aggressive approach to pricing his custom builds – listing several as low as $6/night. Or, are you interested in maximizing profit from your instrument collection? Then price at the higher end of the market.
- Estimate demand for your listed instrument. Do you live in a town where guitarists would appreciate a one-of-a-kind Rickenbacker? You may have room to price the instrument relatively high. Or, are you located in the heart of Nashville where Fender Telecasters practically line the streets? Then, that tele you just listed may need to be priced more aggressively (i.e., lower).
- Consider the cost of renting out your instrument. How much gas will you use to reach your pick up/drop off location? How much profit do you want to make from renting out your instrument? Make sure these considerations are factored into your price.
- Set a price. Watch what happens. Do you have tons of rental requests? You probably have room to increase the rental price of your guitar. Or, are you hearing crickets? Consider lowering your nightly rate since you have priced yourself out of consideration by the market.
- Adjust your price as necessary. The wonderful thing about being part of an online marketplace is that nothing is set in stone. (Now, to be clear, once you have accepted a rental request at a certain price, you cannot ask for more money. But, if you have no pending rental requests or orders to fulfill, then modify your instrument’s rental price as much and as often as you like.)
Have additional suggestions? Let me know: https://fretish.com/user_feedbacks/new