Pricing revisited

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Here is a post I have on my forum (complete with editing suggestions from members of this site thank you for your input).
http://www.tjthedjent.ca/Welcome/viewtopic.php?f=3&t=10&p=11#p11

I think your price should reflect your costs of business as well as a margin of profit which you can actually build a savings on. After all, I don't have a pension plan as part of my company.

I firmly believe that Quality and Price do share an affinity, but it does not have to be law, but it does go back to perception of value.
 
If you're truly being reasonable in your pricing, then it doesn't matter what it is. If you're making your clients compensate for your down time, ego or the the fact that you consider yourself a "Designer DJ", then good luck with that.

The bottom line is that we and or clients walk hand in hand. The question is who's hand do you want to take?

I never really thought of myself as a Designer DJ, but if the shoe fits... I do go to great lengths to fulfill the image they come to me with in mind and not provide for them MY image of their wedding.

I have been apart of a program that suggested customization, but it never delivered. Are there costs to being more flexible? Yes, Sometimes I have to do research because of something they want to add that is traditional, or they heard about from over seas. People have amazing imaginations and it's nice to get as close to that as reasonably possible.

Do I add on extra charges for fulfilling their unique desires? I haven't seen an advertisement yet for a Dj Company that does not suggest they are trying to create unique memories or something similar, yet even attending as a guest I don't see much that is new. Is it because the DJ Company, or the client was not imaginative? It probably had to do with expense.

People buy a car and want the sun roof, onstar, air bags, DvD/GPS/MP3 radio and the dash mini fridge for... water. They are expecting to pay for it.

I am simply trying to accomplish a "fully loaded" service package. I could go options, and I would do very little add on work. In this way I am constantly working on these services which is constant experience. I find short cuts and I save some time, but I am also learning new things and adding them and constantly evolving. But I am not increasing my price simply because I can.

I don't mind of someone wants a stripped down show, I understand, it is what they want, and who am I to tell the bride how to live out her dream.
 
It is business, and I'm not lying to myself, and I don't think any one of us here participating has any more or less "a thing" for honesty and personal honor than any other. All I am doing (speaking for myself anyway) is passing along and charging business expenses where they belong - to the client. And yes, different events require more/different things, so they will be more or less than others.

No questionable practices there - no breach of ethics there, and no problems being honest with myself or sleeping at night. Just passing along to the client what they should be paying for - real world tangibles that cover the existence of the entity they are contracting with and the things that go into their individual event. What more or less should they be paying for? NOTHING!

You are right - far too many charge based on nothing, and solely get what the market can bear. I'm personally not one of those, and loathe that approach. There is a very real and necessary justification for charging different for different events - and there is nothing wrong with realizing that and doing so. The problem arises when people either out of plain ol' ignorance, or full-on unabashed capitalistic greed, take advantage of that margin and artificially inflate it. We all agree on that fact and recognize it as a problem, and anyone pointing out that that goes on in our industry is preaching to the choir! This tangent on the thread should've ended long ago!

As for what we "charge per hour," the entire point thus far is that that way of looking at pricing is baseless and meaningless from a dj business standpoint. That's not what we're REALLY doing even if it is what our clients perceive or even worse, if that's how we spin our rates to them - or ourselves as time goes by.

As for nurses, electricians, etc... even though attempting to "look at what we do" based on an hourly rate is just plain silly, we could just as easily charge that regarding this comparison, it is not us who "charge too much" (I personally DON'T), but them who are undervalued and underpayed with respect to what they do - and let me assure you, they will agree, as would most of us. So if anything according to that observation/analogy, maybe they should be going up - not us going down.

I don't feel guilty about what I charge or how I establish my rates - it is one of the most honest approaches around, so I don't have to.

If any of us is finding ourselves with internal uneasiness or having trouble sleeping at night because we know we can't justify simply charging "what the market can bear," then we'd better re-evaluate our approach - and quick.:sqwink:

It shouldn't have to be perceived as a windfall of negativity, questionable practices, etc. balanced out or justified with a shrug by saying "hey, that's just the way it is... let's not lie to ourselves - it's business."

It SHOULD be "It's just business, it's just fine, and there's nothing wrong with that!"

"It's just business" should be a mere statement of fact - not a justification.



Speak for yourself! :) The charge for my "dj performance skills" at an event less than 25% of my rate in my pricing structure. If we are being honest with ourselves, and we have any clue about running a business, we realize that "what our skills are worth" (for performance time, figured hourly per-event) are actually a very small part of what we charge - and rightfully so. If you are in a position where as a karaoke host you simply show up at your regular venues, sit down, spin their stuff on their equipment, etc., then yeah.... at $125/hr you should feel guilty cause you're ripping them off.

But I know that's not the case. You own your music. You own your equipment. You run a BUSINESS. Your own personal "hourly rate" for "your skills" and what you do at an event is only the tiniest fraction of that $125/hr... so you can't even run it up against the nurse making $40+/hr. Because you know what? All after all real-world business expenses aside, I can guarantee you she's making MORE per hour than you are at $125/hr - Just the way it SHOULD be according to your own argument! :)

The crux of your hourly comparison stems from the misconception you share with your clients that you shouldn't - namely that when they "pay you $125/hr" that that is just what they are doing - paying you for your skills that they see in their establishment. But they are getting so much more, and paying for so much more.

So don't feel bad - you're NOT getting paid "more per hour" than any electrician I know!

I don't have a single argument with anything you said, Sounds. I was probably very unclear in my statements, which were really directed at Mike.

I also know that honesty is all over this board. I sleep well at night and feel no guilt for what I charge- I'm running a business for the purpose of making money. The trade comparisons were for Mike's sake.

On the other hand, I DO believe that the larger budget allotted for weddings and corporate events DOES allow us the OPPORTUNITY to charge more. That the fact that we do is based on more work is WHY we do is what I guess I wasn't clear about......:sqembarrassed:
 
Price is always irrelevent.

Notes on "Being a DJ"

"Mommy, Mommy - when I grow up I want to be a cashier at Dunkin Donuts!"

Fast forward 20 years - and now, when you approach that counter for your coffee will the price of your order tell you if the person serving you is: just a cashier, the store manager, store owner, district supervisor, etc.?
 
Price is always irrelevent.

Notes on "Being a DJ"

"Mommy, Mommy - when I grow up I want to be a cashier at Dunkin Donuts!"

Fast forward 20 years - and now, when you approach that counter for your coffee will the price of your order tell you if the person serving you is: just a cashier, the store manager, store owner, district supervisor, etc.?
OK, I know I'm a little slow on Mondays, more so than the rest of the weeks but Huh?:sqconfused:
 
Fast forward 20 years - and now, when you approach that counter for your coffee will the price of your order tell you if the person serving you is: just a cashier, the store manager, store owner, district supervisor, etc.?

Nope but their badge does. So, maybe we DJs need to wear badges like:

1. DJ Big Ego - Overpriced WED Member
2. DJ Scumbag - Bottom Feeder
3. DJ Big Woop - Part Time DJ
 
I never really thought of myself as a Designer DJ, but if the shoe fits... I do go to great lengths to fulfill the image they come to me with in mind and not provide for them MY image of their wedding.

I have been apart of a program that suggested customization, but it never delivered. Are there costs to being more flexible? Yes, Sometimes I have to do research because of something they want to add that is traditional, or they heard about from over seas. People have amazing imaginations and it's nice to get as close to that as reasonably possible.

Do I add on extra charges for fulfilling their unique desires? I haven't seen an advertisement yet for a Dj Company that does not suggest they are trying to create unique memories or something similar, yet even attending as a guest I don't see much that is new. Is it because the DJ Company, or the client was not imaginative? It probably had to do with expense.

People buy a car and want the sun roof, onstar, air bags, DvD/GPS/MP3 radio and the dash mini fridge for... water. They are expecting to pay for it.

I am simply trying to accomplish a "fully loaded" service package. I could go options, and I would do very little add on work. In this way I am constantly working on these services which is constant experience. I find short cuts and I save some time, but I am also learning new things and adding them and constantly evolving. But I am not increasing my price simply because I can.

I don't mind of someone wants a stripped down show, I understand, it is what they want, and who am I to tell the bride how to live out her dream.

Except the car without all the options costs less than the luxury variety (I know, I own one). You don't pay the same sticker regardless of options.

Mike
 
I don't have a single argument with anything you said, Sounds. I was probably very unclear in my statements, which were really directed at Mike.

I also know that honesty is all over this board. I sleep well at night and feel no guilt for what I charge- I'm running a business for the purpose of making money. The trade comparisons were for Mike's sake.

On the other hand, I DO believe that the larger budget allotted for weddings and corporate events DOES allow us the OPPORTUNITY to charge more. That the fact that we do is based on more work is WHY we do is what I guess I wasn't clear about......:sqembarrassed:

The problem is, does your price go down after you have recovered the investment on your equipment until you buy more equipment?

Mike
 
OK, I know I'm a little slow on Mondays, more so than the rest of the weeks but Huh?

Does the price I charge you to DJ your event tell you my income?

Can you tell by what I charge whether I'm making a good living or paying for an expensive hobby?

Is the price I charge you and the event you request me for indicative of everything that I do?

If the answer is yes - then stop following me around all day.
 
Except the car without all the options costs less than the luxury variety (I know, I own one). You don't pay the same sticker regardless of options.

Mike

Even the luxury car comes with options the cheaper cars don't. They have standard minimum features that are often options on lower model cars. Tack on enough options to a Yaris and it's going to cost as much as a basic luxury car and have similar features.
 
Nope but their badge does. So, maybe we DJs need to wear badges like:

1. DJ Big Ego - Overpriced WED Member
2. DJ Scumbag - Bottom Feeder
3. DJ Big Woop - Part Time DJ


From my end of things:


1) KJ ARGH Matey - Pirate KJ
2) KJ Lizard - Frustrated lounge singer- on mic more that the patrons
3) KJ Huh? - Doesn't know what to do when a singer asks for a key drop, so adds bass...
4) KJ Bigpocket - Takes bribes to bump singers
5) KJ Slime - Only goes after venues with pre-existing shows because he knows that he can't build one - only to be fired in a month because of crowd dropout.

6) KJ Press 'n Play - Self-explanatory

7) Karaoke Host - The real deal
 
The problem is, does your price go down after you have recovered the investment on your equipment until you buy more equipment?

Mike
Nope. While I'm "recovering" initial costs, my equipment is in the process of depreciation due to use and aging. I must budget the costs of replacement along with the other business costs into my fee.
 
Brace yourself.... you're about the get the predictable round of objections/negative responses from the haters, but fear not - you'll benefit in the end, as will your clients. :sqcool:

Unless they are putting food on our table and feeding our soon to be newborn. I could give a rats ass what others think.