Gear purchase agreements

Discussion in 'The Sound Hound Lounge' started by TheoDog, Apr 16, 2016.

  1. TheoDog

    TheoDog Silver Supporting Member

    Messages:
    18,884
    Joined:
    Jan 17, 2011
    Location:
    Bethany, OK
    Our band is investing in new subs. All the pa is owned by the singer, essentially it is his band. But on this purchase, it makes sense to put 1 of the new subs on my GC card to get 12-month no interest and have him pay me back over time.

    I'm not nervous about the transaction, but should we go ahead and make specific arrangements in the event my band tenure doesn't out last the debt?

    Any one have examples of such an agreement? I don't feel like we need to put it in writing as much as have an adult understanding.
     
  2. GuitarGuy66

    GuitarGuy66 Member

    Messages:
    7,319
    Joined:
    Aug 20, 2014
    Put it in writing, unless you are going to keep the sub at your house until it's paid for.
     
    slybird and Jon C like this.
  3. rollyfoster

    rollyfoster Supporting Member

    Messages:
    12,272
    Joined:
    Jul 20, 2006
    Location:
    Arrrstin
    Only if the sub is a five dollar footlong
     
  4. Jon C

    Jon C Silver Supporting Member

    Messages:
    15,625
    Joined:
    Jan 5, 2002
    Location:
    Mid Atlantic USA
    Outline agreement in emails and include, e.g., "... Please let me know if this doesn't accurately cover how we agree to handle this..."
     
  5. burner

    burner Member

    Messages:
    2,699
    Joined:
    Dec 27, 2007
    Location:
    USA
    Prolly best just to go ahead and put it writing.....those "aldult understandings" you mention often do not work out to an actual understanding by all parties and a lot of the time they aren't on the level of an adult.
    IME its the best idea and if anyone has a problem, takes offense, etc. you can spot check their level of "adult understanding" capabilities by explaining why it's better to get it on paper.....better to get that cleared up sooner rather than later.
     
  6. Yer Blues

    Yer Blues Member

    Messages:
    7,291
    Joined:
    May 26, 2013
    What kind of subs are you guys getting?
     
  7. Gotham City Blues

    Gotham City Blues Member

    Messages:
    4,243
    Joined:
    Sep 3, 2005
    If you're here asking that question then you should probably draft a contract.
     
    flyingheelhook likes this.
  8. TheoDog

    TheoDog Silver Supporting Member

    Messages:
    18,884
    Joined:
    Jan 17, 2011
    Location:
    Bethany, OK
    QSC KW181.
     
    Yer Blues likes this.
  9. Greentone

    Greentone Member

    Messages:
    2,694
    Joined:
    Feb 23, 2006
    So it's his band, his PA and you are buying him a $1,400 subwoofer? Is he gonna toss his Amex on the counter next time you see a cool Les Paul? I think not. Don't do it.
     
    rusty and will2002 like this.
  10. ibis

    ibis Member

    Messages:
    910
    Joined:
    Dec 27, 2013
    How do you get a GC card?
    Why can't he get one?
     
  11. mojocaster.com

    mojocaster.com Member

    Messages:
    15,294
    Joined:
    Feb 8, 2006
    Location:
    MojoCaster Land :)
    Definitely get it in writing. No other way to go. Good accounts make for good friends!
     
    marktweedy likes this.
  12. RCM78

    RCM78 Member

    Messages:
    5,041
    Joined:
    Dec 28, 2003
    Location:
    Jersey
    If it was me I would purchase the Subs and own them until the singer had all the cash to buy them outright.
    Another option is to keep the singers share of your gig money until they are paid for but I wouldn't do that unless you already had enough gigs booked to cover the cost.
     
  13. TheoDog

    TheoDog Silver Supporting Member

    Messages:
    18,884
    Joined:
    Jan 17, 2011
    Location:
    Bethany, OK
    Different circumstance lead to different credit levels. I gig in the band and agree we need the upgrade and I have the purchase power. Singer is buying second sub for cash. Singer/leader also just bought $4000 bus to upgrade from our '91 suburban.

    Plenty of gigs. The reality is I will "own" the gear until it is paid off. But it will make more sense for me to store with the rest of the PA.

    The type of circumstance that comes to mind is if my gets laid off and I need to get a day job, thus quit the band.

    I figure it's worth exploring the issue since it's a $1400 purchase.
    I appreciate the feedback.
     
    Last edited: Apr 17, 2016
  14. ArchDukeOfTops

    ArchDukeOfTops Member

    Messages:
    860
    Joined:
    Jul 2, 2012
    My wife tried to get me to make an agreement to limit my gear purchases. I told her I don't negociate with terrorists.
     
  15. Ravindave_3600

    Ravindave_3600 Member

    Messages:
    1,235
    Joined:
    May 5, 2005
    Location:
    Newly, Indiana
    Someone once said, "When you loan money to a friend, be prepared to lose the money or the friend." I've been taken for $40 and $200, and something in writing can be a lot more binding than a handshake or a promise.
     
    mojocaster.com likes this.
  16. Killed_by_Death

    Killed_by_Death Member

    Messages:
    13,776
    Joined:
    Jan 10, 2016
    Location:
    14 Megameters from Groong Tehp
    Sure, but are you open to a negotiation?
    :D
     
    ArchDukeOfTops likes this.
  17. mattball826

    mattball826 Member

    Messages:
    20,857
    Joined:
    Oct 23, 2009
    It's a gut thing. If you feel you can trust the dude go that route. If you feel he'll jerk you around on either ownership or payment, then get something in writing. Of course you'll have the proof of purchase for anything that could require it.

    Worse case you are out 1400 (minus usage and depreciation). Have fun in small claims. Most would just rather let it slide than deal with delays and harsh feelings of a court battle of which many times payment is rarely expeditious.

    I bought a couple nice Martin Heads for the band. We keep them with the PA, but I trust the guys I'm with. They know I own them. OTOH, we could have chose to all pitch in, which is what many do considering this crap isn't worth half of what you paid after a few years.

    Then there are other options where members buy different pieces. I bought a mixer (XR18), tablets, and DBR10 mon wedges. I own them. Other members bought speakers and subs, some lighting gear. Worked out we all spent the same, and we keep the gear or can sell it to the band if we leave for any reason. Good to make things a more shared expense, and all the gear should depreciate about the same over time.

    Also consider if your band is exempting gear purchases and usage depreciation. You can do that individually or if your band is an LLC etc.

    When it comes down to it, it's more a gut thing for me anyway. If I feel good about the members in my band, I'll go the extra mile of buying gear that helps us all. I know it's going to depreciate value fast, but as many gigs we see a year, this stuff pays for itself in a month or two.
     
  18. loudboy

    loudboy Member

    Messages:
    27,388
    Joined:
    Nov 3, 2003
    Location:
    Sedona, AZ
    You just bought a sub. <g> Good luck getting him to buy you out, if something happens with the band.
     
    mojocaster.com likes this.
  19. wire-n-wood

    wire-n-wood Member

    Messages:
    3,504
    Joined:
    Nov 9, 2011
    Location:
    Brisbane, Australia
    No, no, no. I don't believe in this stuff. Unless you are fully professional with a company setup, assets, employees, etc.

    Otherwise, everything should be owned by an individual. Everyone should pull their own weight.
    • Our drummer owns the band practice room and his own monitor.
    • Our bass player (the young guy) owns the main speakers.
    • The singer owns his own mic and does all the marketing, posters and online stuff.
    • I own the mixer, subwoofer and most of the cables and bits and pieces.

    If anyone walks away, we have to replace that part of the setup as well as the person. Not always convenient, but never disputed.
     
  20. mojocaster.com

    mojocaster.com Member

    Messages:
    15,294
    Joined:
    Feb 8, 2006
    Location:
    MojoCaster Land :)
    That's why I own everything. Band member wants to leave, see ya. We won't miss a beat.
     

Share This Page

  1. This site uses cookies to help personalise content, tailor your experience and to keep you logged in if you register.
    By continuing to use this site, you are consenting to our use of cookies.
    Dismiss Notice