Quote:
Originally Posted by antoniosolo ... 6,240 hours in a year so it took 1% of the gross to cover that one piece. |
Huh??! Not as I would reckon it.
If you assume 24/7, then that's 8,760. Not many studios are available (much less booked) 24/7/365, so a lower figure is probably more realistic - however the figure you're quoting apears to corrspond to either 17/7/365 or 24/5/365, neither of which makes much sense for any of the studios I know of, and especially not ones that are charging $80/hr.
A more tenable "maximum possible billable hours" would likely be 4,160, and for most studios 3,000 would closer to the mark - and that's in a in a good year. So to generate a $50k gear budget at around 10% of gross, a studio would need to be billing more than twice the rate you are basing your calcs on.
That aside, you seem to be suggesting that 10% of gross may be too much to be reinvesting in a business and doing so may have in some way contributed to the failure of the industry. I wouldn't agree on either count. In a business that depends heavily on technology, spending 10% of gross seems more than reasonable. To spend less would be more likely to contribute to the demise of the business than the reverse.
AFAICT, it is not good business practice in any industry to suck a business dry for profits, never putting anything back into the business. There is no surer way to "kill the golden goose".