Guitars for lease: my newest project

orpheo

Well-known member
As some of you may (or may not?) know, I've been collecting guitars for the last decade or so. The thing is that over time I've accumulated almost 50 instruments but I just use a handful of them, which is logical. In order for these great, custom shop guitars to be played (including Huber, Warmoth, Charvel, ESP!) I decided to lease guitars. Locally, still, only dutch. The idea is that guys can lease an instrument for 15-25 bucks a month, witch a lot of flexibility in terms of wiring and pickups (I've got so much in stock: you ask for it, I most likely have got it!). The lease is for 1 month till 12 months, with the option to renew the lease if so desired by the player and myself. The income is fully used to upgrade and update other instruments that are, at this moment, ineligible to enter this program due to faulty hardware, bad frets or whatever (but show promise!).

It would appear that Dutch players seem to like this idea because over the last 24 hours I've been leasing 6 guitars, and counting. I wonder, though, why isn't this being done more? I seriously have never ever seen a project like this. Even though I'm doing it on a very small scale and I'm lending out to guys I know for years and years.

A goal could be to load up this program with (predominantly) Orpheo Custom Guitars instruments, but ideally I'd have other dutch builders chime in. I only make Les Pauls, and I'd love to have some great guys have their tele, strat, jazzmaster, jag, hollowbodies, acoustics and amps in the program. So many players are so damn good but can't afford a good instrument. They're playing a 300$ epi or squier which is fine, but not for their chops. They can afford, though, 25 bucks a month for a customshop instrument.

Here you see the first batch of instruments, ready to be leased. Some have rather unique pickups, too! The Bonamassa sig, the first JB/Superdistortion hybrid, the jazz8 set, one of the earliest 59/custom hybrids and a few other pickups that are really unique. Oh, an sh6n/fullshred hybrid, too.

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Re: Guitars for lease: my newest project

I think its a good idea; however, there is a lot of risk involved with the guitar being trashed or stolen. My main thing would be are you charging enough to cover the costs if stolen or broken...but cool idea for honest guys who take care of gear!
 
Re: Guitars for lease: my newest project

As long as you've got some strict rules regarding damage to instruments, and what to do in case someone skips town with your guitar I'd say it's a great idea!
 
Re: Guitars for lease: my newest project

There'd definitely have to be some sort of contract involved where the full value of the instrument was due if it went missing while under the customer's stewardship.

But hey, glad it's working out for you so far.
 
Re: Guitars for lease: my newest project

Brilliant.

I'd totally lease a few Strats or Pauls loaded with different pickups to get direct A:B:C comparisons.

I agree your price may be low, but I've rented a few Camera Lenses over the years and love the idea.
 
Re: Guitars for lease: my newest project

My recommendation would be to calculate the total income that you will earn over the year and then deduct the cost of maintaining the instrument, the incremental depreciation of the instrument from use, the cost of insurance and/or the probability and value of a loss/damage/not being paid (i.e. counterparty risk), and the value of your time. Compare this expected net income relative to the cost of the instrument to determine your expected return and then compare this return to the returns you can get on your capital in alternative investment vehicles (i.e. mutual funds, treasuries, debt funds, equity funds, etc.). At a high level the risk/reward does not make sense to me at your current price points but you may come to a different conslusion based on your own assumptions.
 
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Re: Guitars for lease: my newest project

Man, that's risky. Insure them and make people sign legally binding lease contracts, otherwise you could stand to be the victim of some serious gear damage/theft/whathaveyou.
 
Re: Guitars for lease: my newest project

Wow, what a lot of positive responses and feedback, thanks.

I don't intend to make money from this. For now I am leasing only to guys I know so trashing? Not really concerned abou that. A violin is often rented at similar price points but costs a lot more. A contract with a copy of a photo ID is mandatory. I believe in the best of people but a photo ID is a safety measure I fear I can't go without.
 
Re: Guitars for lease: my newest project

$25 a month to rent/lease a decent guitar is WAAAAYYY below market value, if that is an actual rate. At least it would be here in Canada.

Long and McQuade (Canadian chain that rents almost anything you want) monthly rental for a Gibson is around $60 to $100 a month, depending on the specific model and how new it is. They do a credit check on you first, and they take a credit card imprint in case you trash the thing. And they won't rent any of the premium/CS models.

I recently rented an API 3124+ from them. It cost $40 for 24 hours. Not cheap, but I got a lot of use out of it in those 24 hours (did some nice Kemper profiles), and it was obviously way more cost effective than buying one.
 
Re: Guitars for lease: my newest project

If I were to go with market prices (which would be a challenge, to say the least, to determine, since nobody's doing it here!), I'd have it made into a profit-oriented organisation. I don't want that.
 
Re: Guitars for lease: my newest project

In the USA, a large company can pursue payment through collection agency and impact credit rating if person does not pay bills. A small company or individual would need to pursue this in court, but if other party does not show and you are given judgement, there may still be no way to collect. What is the value of your time?

This all depends upon your ability to collect should guitars go missing. I think this is a bad business model because 12 months of use will require at least $250 in maintenance and depreciation. If you are retired and just looking for something to do then maybe.

Music schools will often rent students band instruments in the USA. I presume one could rent a guitar.
 
Re: Guitars for lease: my newest project

The idea is NOT to make money. This is not intended to be (part of) my income. These guitars are sitting there, unused. They are too good to not be played. I can make others happy by leasing them. At first I wanted to lene them, no charge. But with costs attached, people are more likely to treat the instrument with care. And don't forget : it is up to my discretion to whom I lease. If I don't know you (well enough), it's a no-show. But for now it's contained to guys I know so that's cool. When the program gets larger I can accept others, at other price points or stricter rules, if required. I want people to be abke to try their hand at a customshop (quality) instrument without them having to really buy One. How many of us haven't thought about havung a guitar built but were reluctant or afraid to do so because they have little or no experiencewith guitars in this range and market. I would have loved to have been able to try a guitar before I bought my first custom build guitar. I did it nonetheless and never regretted that move. But for others that stel may be a bridge too far. With this program I want to lower the threshold.
 
Re: Guitars for lease: my newest project

Might be a cool idea to let people buy one of the guitars if they really like it. Some kinda rent to own scheme . . .
 
Re: Guitars for lease: my newest project

I for one think it's a great idea. There is definitely a chance for loss on your end but if you have thought that through and are willing to accept the risk that's all that matters. You will probably be getting a lot of new "friends" wanting to hang out. You might want to have them bring the guitar back to you once a month for a checkup just to make sure they are being taken proper care of. Kudos to you for still having faith that there are good people out there who will take care of your things and for wanting to help others know what a custom guitar feels and sounds like. If I never took up building as a hobbie I would have been one of those who would probably never new what it was like so I can appreciate what your doing for others. I also commend you for not making, making money your concern it's rare in this age.
 
Re: Guitars for lease: my newest project

I understand and agree with your idea of helping friends and not making a profit. But the real problem is the potential loss. Not necessarily loss due to depreciation, or wear and tear, or even theft (assuming you know these people very well), but what about the loss from ACCIDENTAL damage. A guitar that got knocked over, fell off of a stand, got a beer bottle thrown at it. Les Pauls are very subject to broken heads if they fall over.

Your prices are WAY too low, even for leasing to family or close friends. Even with them taking good care of your instruments and no accidental damage occuring, this is a very losing proposition (YOUR loss, not theirs). I would question leasing them for even $50/month. $75-$100/mo is more reasonable.
 
Re: Guitars for lease: my newest project

However, that being said, I truly commend your magnanimous nature and generosity toward your musical community. You certainly show that side of yourself here on this forum and in the many articles you have written. Kudos to you.
 
Re: Guitars for lease: my newest project

However, that being said, I truly commend your magnanimous nature and generosity toward your musical community. You certainly show that side of yourself here on this forum and in the many articles you have written. Kudos to you.

Thanks for your comments and compliments :) I know that I'm cheap but 100 bucks? No, couldnt ever ask that of friends. Maybe later when I've got many more guitars to lease. I know that damages can occur, but how is that different from them being in my own possession? They could get damaged in my hands, too. Besides, I build and repair guitars (more and more so for a living, it would seem!). Only extremely complicated things are out of my reach. Besides, the headstocks on the guitars I'm leasing all have a scarf joint at the headstock. Beer over a guitar is a non issue. Only some pot-damage i suppose. I've seen a pickup submerged in a pickle jar filled with water and after an odd 30 years it still works. I've got a clip to prove it :D
 
Re: Guitars for lease: my newest project

Wow, what a lot of positive responses and feedback, thanks.

I don't intend to make money from this. For now I am leasing only to guys I know so trashing? Not really concerned abou that. A violin is often rented at similar price points but costs a lot more. A contract with a copy of a photo ID is mandatory. I believe in the best of people but a photo ID is a safety measure I fear I can't go without.

So I guess we shouldn't bring up the time you lent a guitar to a guy for an hour and he covered your Zehphrs in blood?

I mean, it's a nice idea and all but not really original in that many music stores already rent gear. The way you're doing it, while well intentioned, is simply very risky due to the fact that you aren't a business and don't have insurance to cover loss/theft/damage in the event that something unfortunate may eventually happen. You seem very adverse to the idea of profit, but if it were me I'd at the very least get the needed safeguards in place and charge what you need to break even.
 
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