How much do I need to charge...

Flyingdjdan said:

These charts: are they your average over the years, or just from last year?

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Flyingdjdan,

As I has indicated earlier. These charts represent and average percentage.

The title on the top indicates the time period and basis.

Flyingdjdan said:

You said earlier that you are showing consistant "budget percentages" for each catagory over the years.

How much has your budget actually grown in relation to the amount of area covered for performances (since you cover multi state and travel extensivly.)

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Flyingdjdan,

The yearly budgets stay fairly constant for one reason. A budget is set for each category a year in advance and I strive to stick to that budget. There are instances that budgets come nowhere near their goal. You end up raiding one budget for another for non-anticipated increases such as fuel prices and commercial insurance, which increased after 9/11. Sometimes you get lucky and save on the overall budget. However, that's why you set budgets...to keep a guiding financial princple.

To address your coverage area:

During the last five years we added Nebraska & Iowa. What I have noticed is the increase in overall revenue far outweighed any negligable effect of travel. Whether we drive 100 miles in town or 180 miles out of town, the same amount of fuel get's used. We actually get better fuel mileage on the road.

I can track the fuel expediture down to any vehicle in the fleet. Every employee that uses a company vehicle must fill out a mileage voucher containing detailed information about the use. Incidentally, they do not get their paid for the event until the paperwork is submitted. If I see mileage drop by even one MPG, I can address the matter. A drop in mileage can be created by several reasons, including but not limited to, a dirty fuel filter, need for an oil change, low tire pressure or driver with a lead foot.

I have also made an appeal to my staff to reduce speed from 75 to 65 on the interstate to conserve fuel. We live in a windy region. Fuel consumption can be affected by when you take off during the day.

Flyingdjdan said:

Do you find that certain types of advertising work better in certain areas, either by population, or via demographics of the area. (if you are tracking).

I know from previous discussions you don't have a major web presence. Why?

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Flyingdjdan,

Each area has it's choice mediums. For instance, a small town paper is read cover to cover and help for a longer time than a larger more expensive daily. The upside of a larger, more expensive daily, is the number of possible impressions. The advertising mediums you choose, largely depend on your target market. Our focus is Wedding, HS & College, Corporate.

Regarding web presesence:

We maintain a minimal web presence via mediums where we already advertise. We live in a right click steal intelligent content world. I find that personal service, far outweighs an impersonal website which gives my competitors more ease to farm our itelligent works, music lists...etc.

Flyingdjdan said:

Most people I see state that yp advertising is a pretty bad roi. Are you finding this? What methods do you find that are good.

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Flyingdjdan,

I would beg to differ. Having a maintenance listing in a phone book is not a bad investment. Paying for a display ad may not be as cost effective. Most people that take issue with yellow page advertising are taking issue with parting with money. Not the ROI. I have over 20 years of data that supports yellow page listings working.

I am also cashing in on the fact that web presence has become more congested over the past five years.

Just google the term disc jockey...and see how many results you come up with ( 2,210,000 )

disc jockey - 2,210,000
professional disc jockey - 1,320,000
professional wedding disc jockey - 1,400,000
wedding disc jockey - 1,700,000

I have 35 listings to compete with locally.

I have 120 listings to compete with with 100 miles.

My odds are better focusing on what works rather than offering up a medium that gets lost in a bigger shuffle.

Internet web presence has given clients access to unqualified entities that are mistaken for equals of exceptionally qualified entities. The AV world we live in is more akin to movie trailer & highlilght reels that any truthful statement. I have viewed tremendous websites constructed by hideous entertainers. Point & click does not encourage comparison shopping on the points that matter. It is creating a price siege that we all may have to deal with.

[Edited Out per Posters Request --Bounce]

Flyingdjdan said:

I would enjoy a comparison of numbers with my biz. They are totally scewed. I purposfully cut way back due to a multitude of issues over the last few years. ( I took a step back, did internal and external review of me and the biz, didn't like what I saw. Major rebuild on both). The old business "model" (if you call it one) was purely hobbiest that would never have supported my family full time. Thus the revamp.

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Flyingdjdan,

This is precisely why I am using percentages. 10% of something is always 10%. It appears that people focus on a specific number, then try to disqualify that number. When in reality, a comparison cannot be an actual comparison without unique sets of numbers. The disparity between numbers can indicate where potential gains could be made.

Steve Miller said:

My point would be that all the graphs and all the typing that Dude does is absolutely meaningless, and doesn't tell you a thing.

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Nice Steve, Coming from you...that means alot.

Steve Miller said:

let's see how Dude can turn the answers into a circle.

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I got a song that ain't no melody, I'm gonna sing it to my friends (repeat)

CHORUS
Will it go round in circles, will it fly high like a bird up in the sky
(repeat)

I got a story ain't no moral, I let the bad guy win every once in a while
(repeat)






Dang....! That's an "odd" shaped circle...

Steve,

Thank you for your kind words.

Looks like things are shaping up for a great comparison.








For more details:
http://www.supremecourtus.gov/opinions/06pdf/05-381.pdf

Jeff Romard said:

So why do (in comparison) nickel and dime Disc Jockeys feel like they, or thier competitors, shouldnt sell on price? It sure seems like an effective strategy for the big guys

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Jeff,

First off... Thank you for a respectful response.

You've made an astute observation. The "big guys" do compete on price. They are selling commodities to a larger core demographic. The scale of unit sales is large enough to absorb production cost over greater number of units, lowering the cost per unit significantly. Wages are an indirect portion of the end price. MDJs, however, have a direct connection to wages in their rates. All too often, it is the wage portion of the contract that is sacrificed and employment is sought elsewhere to assist in the survival of the MDJs hobby.

MDJs fairly finite number of potential performances "overall". When you begin slicing up a market with increasing numbers of MDJs the situation worsens.

I do have to agree with Proformance (Bob) & Steve Miller on one point. They understand the concept of lowering production costs to maximize earning potential. Neither, however, seemed to grasp or are willing to admit that there is an average minimum production cost based upon the number of performances.

The workforce in general, aspires to earn more to combat rising costs for everything that we consume. Yet MDJs everyday compete to earn less per show, not knowing if there will be enough future business volume to sustain their predatory price strategy. There are 2 major components to any MDJs rate. (1) Fixed costs of operation and (2) wages. It seems that in many cases, MDJs have hedged on a bad bet. The misconception that they will have more events next year, despite more MDJs entering the market.

In reality, when a market becomes flooded, market share will suffer.

You cannot compete on numbers in a flooded market. This is where the perspective of supply and demand is being scewed by the MDJ masses. Every dance lost increases your production cost per event.

For illustration purposes, let's say 2 MDJs spend the EXACT same amount annually producing shows.

$10,000 total annual expenses

MDJ 1 performs 10 events/$10,000 = $1,000 production cost per show. If this MDJ needs to support a family of 4, add another $2,000 per show with an average per show cost of $3,000 per show.

MDJ 2 performs 100 events/$10,000 = $100 production cost per show. If this MDJ needs to support a family of 4, add another $200 per show with an average per show cost of $300 per show.

Curiously, I've seen many single-op MDJs assemble a 2nd system for busy nights thinking that it's not costing them more to run the 2nd system. Realistically, the 2nd systems increases their costs and exposure to liablity.

Cornering the market would seem to make sense, until you realize that other MDJs may be using the same exact approach.

Lowering their event fee to land the event. Essentially earning less per show and the core of all MDJs suffers because each market has a fairly finite potential number of events.

This is where the line seems to blurr for many MDJs. There seems to be an odd misconceptions when one person is doing fine that they'll always due fine. Rest assured, if ONE MDJ seems to have a lions share of the events. That is the MDJ that everyone will be gunning for competatively on price.


More competition present, drives down performances YET increases production costs...



The rate needed to support a family is outpacing the markey average price...



Each company has less dances per share...



No circles here...

Tim_Myth said:

Dude, you need to get your facts straight. My wife has been a DJ since 1994. She has never been in your training program (unless joining MAPDJ is considered being your trainee). She also did not poach the karaoke gig. *** got fired, then they called her and asked her to kj the show. *** did lose the gig due to price, but that is because according to the bar owner he was gouging them over other services. As for throwing us out half way through the show...how would you even know that? Because ***'s best friend is one of the minor owners (not the decision maker) and told ***** even before she sstarted performing "***'s top dog in this town". I was there helping her set up. These are first hand facts, not the facts as told to you via ***.

[Removed Personal Attack -- Bounce].

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Tim,

Thanks for "outing" yourself...I guess? Out of respect for you, I didn't use names...just the situation. Now that you've "outed" yourself, everyone has access to your information.

Tim, it was you specifically that had applied for our company.

I still have your application on file. It does not indicate that you were in any way affiliated with any company when you applied. In fact, we specifically ask that question during the interview process.

What you are indicating in this post suggests you applied and specifically failed to disclose pertinent information about your affiliation to attain information about our operation.

It makes me wonder if you were really sick on the weekends when you "couldn't" work. Hmmm... thanks for filling in the blanks.

As for naming names... You should have left *** out of this scenario. I'm sure that he'll appreciate being named in front of a group he doesn't know.

I find it curious that he's a friend of one of the owners, referred to as a Karoake "top dog" in town & get's fired. I'm sure that *** will be more than happy to clear up your allegations.