Tariff impact on small production - rental an option?

The place for questions about shooting with Blackmagic Cameras.
  • Author
  • Message
Online

Ellory Yu

  • Posts: 4680
  • Joined: Wed Jul 30, 2014 5:25 pm

Tariff impact on small production - rental an option?

PostWed Apr 09, 2025 4:43 pm

I’m glad that BMD is doing what it can to keep their prices down so small production businesses and individuals can acquire the equipment they need. But the implications of the tariff is too affecting, for example, my clients pocket books. This is happening so fast and here in USA it’s starting to be felt. A number of clients in the last couple of days that we have lined up for the next 6-12 months have postponed and delayed projects with us. That got our business manager and accountant worried. To streamline things, we’re likely are going to cap off our expenses, especially with large ticket purchases to be delayed in order to have reserves. That really sucks because I had plans on several new equipments for the studio. We will just have to live with old equipments with the few projects on the table. After that, it’s a wild guess. Speaking with friends in the same boat, the common wisdom being shared is even for household needs, the common thread was just spend on the necessities and do away with the wants for now, and delay large purchases until things smooth out. Feel like being in the bubble of the COVID pandemic era again. Going back to equipments, since we’re going to delay all large purchases, could rentals be an option. IDK.
URSA Mini Pro 4.6K G2, BMPCC 6K. iMac Pro 27” 5K Retina, 64gb, 1Tb SSD, 12Tb M.2 NVMe TB4 DAS, 36Tb HDD DAS, Vega 56 8gb GPU/ BM Vega 56 8gb eGPU, MacOS Sequoia+DVRS 19.1.4, BM Panel & Speed Editor. Mac Mini M2 Pro 10/16 cores, Sequoia+DVRS 20
Online
User avatar

rick.lang

  • Posts: 18617
  • Joined: Wed Aug 22, 2012 5:41 pm
  • Location: Victoria BC Canada

Re: Tariff impact on small production - rental an option?

PostWed Apr 09, 2025 5:16 pm

Rentals for equipment they have in stock possibly won’t change. As soon as they need to buy more equipment like the Cine 12K/17K or Pyxis 12K, their rental rates will have some increase up to say 10%.

There are few places to hide when the storm hits. Making do with what you have until the storm passes is an option but not a lot of fun and stifles product and artistic enhancement of whatever you have planned.
Rick Lang
Offline

Tom Roper

  • Posts: 648
  • Joined: Sat Apr 14, 2018 4:59 pm
  • Real Name: Tom Roper

Re: Tariff impact on small production - rental an option?

PostWed Apr 09, 2025 7:12 pm

Tariffs have been paused 90 days for all countries except China.
Online

Ellory Yu

  • Posts: 4680
  • Joined: Wed Jul 30, 2014 5:25 pm

Re: Tariff impact on small production - rental an option?

PostWed Apr 09, 2025 7:26 pm

Tom Roper wrote:Tariffs have been paused 90 days for all countries except China.

That doesn’t change a thing for my clients. They’re taking their own precautions. That’s not going to help me as well. Many of the equipments we used have originated or parts originated from China. - Lights, grips, etc… not only cameras. For example, We like using SmallRigs too with our BMD rigs… including batteries and they are all made in China. :(

But in all, it’s the clients that are affected too so they are cutting back which ripples down to very small businesses like ours. There’s a lot of uncertainty. I hope we all will wiggle through it.
URSA Mini Pro 4.6K G2, BMPCC 6K. iMac Pro 27” 5K Retina, 64gb, 1Tb SSD, 12Tb M.2 NVMe TB4 DAS, 36Tb HDD DAS, Vega 56 8gb GPU/ BM Vega 56 8gb eGPU, MacOS Sequoia+DVRS 19.1.4, BM Panel & Speed Editor. Mac Mini M2 Pro 10/16 cores, Sequoia+DVRS 20
Offline
User avatar

timbutt2

  • Posts: 3562
  • Joined: Tue Nov 12, 2013 10:32 am
  • Location: St. Petersburg, Florida, United States of Amercia

Re: Tariff impact on small production - rental an option?

PostWed Apr 09, 2025 7:34 pm

All my lights are Nanlite, which is from China.
My lenses are DZOFilm, which is from China.

Most of my gear is made overseas. Sachtler Tripods: Germany. Blackmagic Design Cameras: Australia.

I honestly don't know what I have that is actually made in the United States.

I've already adjusted my pricing for the Blackmagic Design gear. Waiting to see what new prices for other gear will be to adjust those prices. But I'll continue to charge clientele a 2.5% of MSRP for my daily rental rate for kit I'm bringing on a production. Thus my percentage hasn't changed, just the MSRP on the gear I'm using. The price will adjust accordingly.
Real Name: Tim Buttner (timbutt2)

Cameras: URSA Cine 12K & Pocket 6K Pro
Past: UMPG2, UM4.6K, P6K, BMCC2.5K
Computers: iMac 5K (Mid 2020) & M4 Pro MacBook Pro 16" (Late 2024)
Online

Ellory Yu

  • Posts: 4680
  • Joined: Wed Jul 30, 2014 5:25 pm

Re: Tariff impact on small production - rental an option?

PostWed Apr 09, 2025 7:48 pm

Tim, I hope your clients are not revisiting their budget or making adjustments for themselves. For us, it’s not about raising our prices based on MSRP but rather the client coming to us and saying - hey, this is uncertain times for us so we’re going to hold off our project with you for a bit. So we have to watch our spending on new equipments - essentially no large ticket items to buy for now (I.e. lenses, cameras, expensive lights and grip equipments). We can still work on projects that we can use with our existing equipment or alternatively looking into rentals, but as Rick pointed out those rental prices can be affected too. But first things first is to reduce/cut spend due to lower revenue forecasts. :(

And to your point, I too don’t know of gears that we are using that’s made in the USA. Even our Westcott scrims, which are supposedly made in the USA, are really just assembled here so the materials are coming most likely from China. BMD, from Kristian’s post, seem to be more flexible in finding a different manufacturing elsewhere that would not affect them.
URSA Mini Pro 4.6K G2, BMPCC 6K. iMac Pro 27” 5K Retina, 64gb, 1Tb SSD, 12Tb M.2 NVMe TB4 DAS, 36Tb HDD DAS, Vega 56 8gb GPU/ BM Vega 56 8gb eGPU, MacOS Sequoia+DVRS 19.1.4, BM Panel & Speed Editor. Mac Mini M2 Pro 10/16 cores, Sequoia+DVRS 20
Online
User avatar

rick.lang

  • Posts: 18617
  • Joined: Wed Aug 22, 2012 5:41 pm
  • Location: Victoria BC Canada

Re: Tariff impact on small production - rental an option?

PostWed Apr 09, 2025 7:57 pm

Tom Roper wrote:Tariffs have been paused 90 days for all countries except China.
Tom, apparently for Canada “There still appear to be 25% tariffs on autos, steel and aluminum except for items produced within the provisions in the CUSMA trade treaty expiring in 2026.
Rick Lang
Offline
User avatar

timbutt2

  • Posts: 3562
  • Joined: Tue Nov 12, 2013 10:32 am
  • Location: St. Petersburg, Florida, United States of Amercia

Re: Tariff impact on small production - rental an option?

PostWed Apr 09, 2025 8:22 pm

Ellory Yu wrote:Tim, I hope your clients are not revisiting their budget or making adjustments for themselves. For us, it’s not about raising our prices based on MSRP but rather the client coming to us and saying - hey, this is uncertain times for us so we’re going to hold off our project with you for a bit. So we have to watch our spending on new equipments - essentially no large ticket items to buy for now (I.e. lenses, cameras, expensive lights and grip equipments). We can still work on projects that we can use with our existing equipment or alternatively looking into rentals, but as Rick pointed out those rental prices can be affected too. But first things first is to reduce/cut spend due to lower revenue forecasts. :(

And to your point, I too don’t know of gears that we are using that’s made in the USA. Even our Westcott scrims, which are supposedly made in the USA, are really just assembled here so the materials are coming most likely from China. BMD, from Kristian’s post, seem to be more flexible in finding a different manufacturing elsewhere that would not affect them.
Oh, I already had a client delay a shoot this month due to the turmoil. So, clients are making adjustments based on the market.

My point was simply that the gear rates need to be adjusted due to replacement and/or repair value changes with the MSRP. So the clients do understand when it comes to it why gear rates are where they are. So price increases are understandable for them when the gear costs more because of the tariffs.

If a light made in China cost 1,000 to buy just last year, and is now 3,400 to replace with the same unit if broken on set. Then a client understands why the day rate has to be different, even if no one likes it. Again, I’m in communication with clients with clear transparency of why I charge what I do.


Sent from my iPhone using Tapatalk
Real Name: Tim Buttner (timbutt2)

Cameras: URSA Cine 12K & Pocket 6K Pro
Past: UMPG2, UM4.6K, P6K, BMCC2.5K
Computers: iMac 5K (Mid 2020) & M4 Pro MacBook Pro 16" (Late 2024)
Offline

Tom Roper

  • Posts: 648
  • Joined: Sat Apr 14, 2018 4:59 pm
  • Real Name: Tom Roper

Re: Tariff impact on small production - rental an option?

PostWed Apr 09, 2025 11:32 pm

rick.lang wrote:
Tom Roper wrote:Tariffs have been paused 90 days for all countries except China.
Tom, apparently for Canada “There still appear to be 25% tariffs on autos, steel and aluminum except for items produced within the provisions in the CUSMA trade treaty expiring in 2026.

That's unfortunate Rick but soon it will all be righted again, no more tariffs, Lord Stanley's Cup where it belongs, Canada the 51st state! Join us as we extend warm welcomes to Greenlander's and Panama! (Sorry, couldn't resist..)
Offline

WahWay

  • Posts: 1028
  • Joined: Tue Apr 07, 2020 11:54 am
  • Real Name: Simon Chan

Re: Tariff impact on small production - rental an option?

PostThu Apr 10, 2025 1:48 am

Tom Roper wrote:Tariffs have been paused 90 days for all countries except China.


There is still a flat rate of 10% tarrifs which are imposed with immediate effect. That in itself would have been a storm in the news a few weeks ago but it seems given the threat of higher tarrifs most countries feel happy about it which plays right into Trump's spin. It was always going to be 10% but stopping countries from hitting back with counter tarrifs was the key but still this is hurting American pockets.
China has been preparing for tarrifs anything above 34% would have wiped off any profit if the exporter was willing to shoulder the cost so 125% or higher is just numbers to the Chinese but that number translate to real cost and pain for American consumers who will find it hard to find a replacement and even if they could not at those price that they are use to.

Trump will be calling Xi for a deal rather than the other way because I doubt this will continue but no doubt Trump will claim that was his intention all along whatever the result will be.
Online
User avatar

rick.lang

  • Posts: 18617
  • Joined: Wed Aug 22, 2012 5:41 pm
  • Location: Victoria BC Canada

Tariff impact on small production - rental an option?

PostThu Apr 10, 2025 2:42 am

Tom Roper wrote:That's unfortunate Rick but soon it will all be righted again, no more tariffs, Lord Stanley's Cup where it belongs, Canada the 51st state! Join us as we extend warm welcomes to Greenlander's and Panama! (Sorry, couldn't resist..)


Anything can happen, but there are a few potential problems with that:
1) there’s an island in the far north that Canada and Denmark both claim as their’s; a longstanding arrangement to keep the peace between friends has Canada and Denmark sharing the island without giving up their sovereign claims
2) there’s a western territory less than 5 square miles with its northern border the 49th parallel called Point Roberts likely due to an oversight by Britain in 1846 with the Oregon Treaty; a large portion of the residents are dual US and Canadian; a resolution of which ‘state’ would claim Point Roberts might be the same as that Island in the far north many decades away
3) Canada as a country will never be the 51st because it is made up of 10 provinces and several territories each of which are staunchly separate and have distinct culture, languages, traditions, and so on; so the only hope for joining the Union is granting each province and territory its own statehood which means at least 26 new senators with no allegiance to anyone as they would be looking out for their own interests as they always have (you know things like maple syrup, good beer, cheap eggs, and the genetically bred quest for the elusive Stanley Cup) so they would soon be in control of the US Senate and only demand AOC as president only if Elizabeth May (my parliamentarian) was vice-president—the thought of incorruptible people with unquestionable integrity running the show will never be acceptable to the powers that be, better they leave Canada alone and count their blessings
4) those in the US that think Canada and Greenland might be feasible annexations, since they’re both peace-loving at heart, need to read up on the history of Panama. Separated from a very large Colombia with the aid of the US, they are in no mood to be governed by anyone now; they’ll all run to the jungle as they’ve done before and pick off their new rulers one by one in their sleep.
Rick Lang
Offline

WahWay

  • Posts: 1028
  • Joined: Tue Apr 07, 2020 11:54 am
  • Real Name: Simon Chan

Re: Tariff impact on small production - rental an option?

PostThu Apr 10, 2025 5:28 am

Made in America Mid49 standard Pyxis cage set you back around $1,000 but a Tilta cage from China is only $300 and I prefer the Tilta not just the price but the style. With tarrif at 125% the Tilta cage will only cost £675 which is a huge jump but still less than Mid49.
Offline
User avatar

carlomacchiavello

  • Posts: 3054
  • Joined: Tue Aug 28, 2012 6:04 pm
  • Location: italy

Re: Tariff impact on small production - rental an option?

PostSun Apr 13, 2025 7:38 pm

WahWay wrote:Made in America Mid49 standard Pyxis cage set you back around $1,000 but a Tilta cage from China is only $300 and I prefer the Tilta not just the price but the style. With tarrif at 125% the Tilta cage will only cost £675 which is a huge jump but still less than Mid49.
And Tilta is a large and complex echo systems that allow you to share accessories between different cage of different cameras.


Inviato dal mio iPhone utilizzando Tapatalk

Return to Cinematography

Who is online

Users browsing this forum: Food4Thought, Zorbax and 47 guests