Are you a Business Person or a DJ?

Let me throw my 3 cents in...

A contract has to be bi-lateral. Everyone has to win. First rule of contract law (as I understand it...)

Fred, you say that the client can cancel within 15 days, no harm, no foul... Do YOU have the same right to cancel within 15 days? What if a much better paying event comes along. If there is a clause that allows for cancellation within 15 days, then you have the contractual right to take that event and leave your other client high and dry...

I explain to my clients that there is no cancellation clause in my contract. Once we've signed, I am 100% committed to THEIR event on THAT day. I entertain no other other offers for work on THAT day. This protects my client every bit as much as it protects me.

As a solo op (and part-time to boot) it is all the more important to me to ensure that once a client has signed with me, the contract is completed. I have only 52 Saturdays per year. More importantly, I have only about 20 Saturdays from May through October (my busiest season.) If someone books one of those days, and then cancels, I have LOST an opportunity to make money that day. My business plan doesn't allow for open days during those months (except for the week I take off for vacation...)

And to answer the question that started the thread, I consider myself be both a DJ AND a businessman...

You're a union laborer under contract for 50 weeks of work per year, two weeks paid vacation, and retirement/health benefits.

One morning, the company says you'll not be working for a week, there'll be no pay, no benefits during that time, and thank you for being such a faithful employee.

Three months later, it happens again.

You're going to say "Thank you" and not pursue recourse because you know the company has only your best interests at heart.

Your roof just needed to be replaced. An unforseen $6K expense. A $1,200 wedding cancels you before they've paid their required balance. Not a second thought here. Just let 'em go. It's okay.

You've got 30 weddings on the books, got a raise at your real job, hit the numbers and decide, ah screw it, I'm not doing this wedding this weekend and email the bride that you no longer require the income from her event. Thank you. Hope you find someone.

A contract is a MUTUAL agreement between two persons who enter into it understanding everything in it, their responsibilities, and then sign it. It has nothing to do with business or performance. It's a person's word.

Shame on them for not honoring their word and shame on you for not making them. Go ahead and think hero while they think a sucker.

Well 1cdj.....I will always be my clients friend before I am their dj...and thats how I will run my business. What works for you is great, and you protect yourself from a financial standpoint. But honestly....when I hire someone to lay carpet.....sheetrock...etc etc...I prefer to hire someone I can trust, and someone I could easily call a friend.

I also base my hirings on reputation. This is the business approach I'd rather take, and that is how it is going to be. My clients appreciate that I want to be their friend, and that I dont want to take the money and run. And this isnt some self revelation on what I think....this is stuff I have heard numerous times from my clients.

In fact..I just had a meeting yesterday for a wedding this weekend, and they were so happy, beyond happy, that they were able to get a dj/friend like me. They understood my commitment to how important their event is, and how it should be treated. So the friend approach is working great for me!

I will say though...your approach is a "safer financial" decision to base your business.....and I cannot say that your approach is bad. I can tell you do many many many gigs during a year, and you are quite successful, therefore I cannot tell you that I cannot disagree with your approach. I guess maybe I will change my philosophy as I do more gigs?? I guess it is something to think about, and I will definitely take a step back, and see if this is the right approach.

Thanks....

I must say this....................

I have had two wedding cancellations last year, and I performed both already again this year. The only thing I will get from my clients from now on is a retainer fee. Which will be 25% of total contract.

My bottom line is this.........

Once you want to book a date with me...you will pay your 25% down to hold the date....if you cancel you will receive nothing back. But if they cancel, I ask that they do it at least two weeks in advance. If they cancel closer to date...I will be disappointed, but I will get over it.

In fact..as I type...I think I will do a 50% down to hold the date. I mean if you really want a DJ, you would make sure you get the date held..right??

I am going to put this thought in another new thread...please post your ideas in their please. Sorry Matt....for the slight highjack!

20% Date Retainer

Another 30% (50% total) no later than 25 days before event date

Balance no later than 10 days prior to event.

This was for weddings when I accepted them, and is now for corporates.
I am much more flexible for smaller events...

This is going to cost me some grief, but it's a fair question and deserves a response, the contract signing payment which has been carefully crafted on various dynamics and therefore is flexible.

First dynamic is the differential in my price versus the regional average. If that difference is $400.00, that will be the contract signing payment. It discourages "save a few bucks" cancellations if finances become tight, that the balance remaining to me is the same or a bit less than dumping me for an el cheapo.

The second dynamic is income flow for the year in which the contract signing payment is received and the income for the year of the event. In this scenario, my income for 2008 has all been received (my contracts require total event payment in full 90 days before the event) and I have already done some tax mechanics. A reduction or increase in contract signing payments issued this year would have little tax liability impact therefore no changes are needed. If more money is needed next year, I'd consider rolling the dice, get less up front for more next years but run the risks of current financial and economic concerns versus local DJ market pricing.

When all is said and done, on average, the required contract signing payment averages about 1/3 my contract's face value.

If the client wishes to contract for any options when the contract is issued, 50% of the full cost of the option is added to the contract signing payment. Options selected after the contract has been signed are handled with change orders, not contract modifications, and are to be paid in full. In rare cases, payment schedules are negotiated (twice in the past 20 years).

DJMN said:

Well 1cdj.....I will always be my clients friend before I am their dj...and thats how I will run my business. What works for you is great, and you protect yourself from a financial standpoint. But honestly....when I hire someone to lay carpet.....sheetrock...etc etc...I prefer to hire someone I can trust, and someone I could easily call a friend.

I also base my hirings on reputation. This is the business approach I'd rather take, and that is how it is going to be. My clients appreciate that I want to be their friend, and that I dont want to take the money and run. And this isnt some self revelation on what I think....this is stuff I have heard numerous times from my clients.

In fact..I just had a meeting yesterday for a wedding this weekend, and they were so happy, beyond happy, that they were able to get a dj/friend like me. They understood my commitment to how important their event is, and how it should be treated. So the friend approach is working great for me!

I will say though...your approach is a "safer financial" decision to base your business.....and I cannot say that your approach is bad. I can tell you do many many many gigs during a year, and you are quite successful, therefore I cannot tell you that I cannot disagree with your approach. I guess maybe I will change my philosophy as I do more gigs?? I guess it is something to think about, and I will definitely take a step back, and see if this is the right approach.

Thanks....

Click to expand...

Adam
that response was quite well written for a disagreement I totally understand your position. We are the largest multi in the state and will stay that way.

Now i think in this thread i did say that I have become friends with some of our clients AFTER the job in fact we did the wedding of our husband and wife team a year before they started working for us.

I think your approach will cloud your judgement when you need to make a business decision.