How much do I need to charge...
- Thread starter Dude Walker
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I just bought a TEAC xtra-slim Stereo/CD player with subwoofer & NXT flat panel speakers.....for my daughter's 16th birthday.
$119 at Costco (this week's coupon special). Even the "regular price" of $139 is a steal, compared to the Bang & Olufsen piece it copies from 20 years ago (a system that cost $10k back then).
The quality of this unit is surprisingly good and even the remote control has a very substantial feel. The little subwoofer puts out a large amount of bass, considering its probably a 6" woofer and only 20 watts of power. The flat panel speakers are not great, but the whole sound is much better than the boombox Allie was using previously.
Point is, that person who spent $10k on that Bang & Olufsen stereo shouldn't be pissed off that someone can buy a "knockoff" for just over $100 today.
They had 20 years of good use of that technology, and shouldn't cry sour grapes because now the cost of entry is lower.
Face it, you can buy a laptop for $100, buy a pair of powered speakers for under $200, and a mixer for $50.
We will always be plagued by newcomers with lower cost of production due to entry costs being lowered.
Its what we do with our talent, and how we control costs......that will determine our profitability.....NOT PRICE.
$119 at Costco (this week's coupon special). Even the "regular price" of $139 is a steal, compared to the Bang & Olufsen piece it copies from 20 years ago (a system that cost $10k back then).
The quality of this unit is surprisingly good and even the remote control has a very substantial feel. The little subwoofer puts out a large amount of bass, considering its probably a 6" woofer and only 20 watts of power. The flat panel speakers are not great, but the whole sound is much better than the boombox Allie was using previously.
Point is, that person who spent $10k on that Bang & Olufsen stereo shouldn't be pissed off that someone can buy a "knockoff" for just over $100 today.
They had 20 years of good use of that technology, and shouldn't cry sour grapes because now the cost of entry is lower.
Face it, you can buy a laptop for $100, buy a pair of powered speakers for under $200, and a mixer for $50.
We will always be plagued by newcomers with lower cost of production due to entry costs being lowered.
Its what we do with our talent, and how we control costs......that will determine our profitability.....NOT PRICE.
Bob, Steve, et al...
The basis of this thread is for a person to look at their own numbers. Reflect, project and set into action a more profitable pricing model...if possible.
I'm sure we'll discover what you think this thread is about this week...in time.
Whether or not you agree, appreciate or support the ideal....is not the issue. Numbers play active part...so deal with it. :BangHead:
Bob, I find it curious. If you have an issue with threads that deal with price... Why is the ONLY thread that you started on ODJT as of 3/6/2007 9:22am CDT about pricing?
Location, Location, Location...
While I may agree with your thread, I find it curious that your reference to cost of living affecting event price can run contrary to your suggested backward principle.
If the core of any market has a generally accepted "street price", forcing a production cost into that pricing model can leave a entity with little to no wages to live on. In fact, that is exactly why so many entities rely on 2nd & 3rd sources of income to make ends meet.
This is the precise point that the original table in post #1 comes into play. The exploration of possibilities. Which has a direct relation to business...and our business at hand.
Challenging that price barrier is essential for everyone's ability to make more to earn a livable wage & save for retirement.
Goto: 2002 Economic Census
Enter [ Disc Jockey ] in the NAICS Statistics Sampler, upper right hand corner.
Disc Jockey Listing Classification
Click on [ 711510 ]
Disc Jockey Category
Scroll down about half way down the page.
You'll find a listing of states. Scroll down to ND. It lists 12 entities. Yet, ND at that time had nearly 300 MDJs. Incidentally, there were more individual MDJ companies listed in the Fargo, ND yellow pages than there were listed companies with the Secretary of State.
South Dakota: 21 yet over 275 companies existed in various forms.
Minnesota: 253 yet over 1,500 companies existed in various forms.
If a person outside the industry bases their business model on only the most visible entities, not the ones within the cracks, they may feel enticed to jump in. Only to realize after the fact, more MDJs exist within the cracks competing on price, lowering the core "street value" of MDJs.
Albeit, a long shot...it is my hope that illustrating where someone is...and where they could be will entice more to improve their situation.
The basis of this thread is for a person to look at their own numbers. Reflect, project and set into action a more profitable pricing model...if possible.
I'm sure we'll discover what you think this thread is about this week...in time.
Whether or not you agree, appreciate or support the ideal....is not the issue. Numbers play active part...so deal with it. :BangHead:
Bob, I find it curious. If you have an issue with threads that deal with price... Why is the ONLY thread that you started on ODJT as of 3/6/2007 9:22am CDT about pricing?
Location, Location, Location...
While I may agree with your thread, I find it curious that your reference to cost of living affecting event price can run contrary to your suggested backward principle.
If the core of any market has a generally accepted "street price", forcing a production cost into that pricing model can leave a entity with little to no wages to live on. In fact, that is exactly why so many entities rely on 2nd & 3rd sources of income to make ends meet.
This is the precise point that the original table in post #1 comes into play. The exploration of possibilities. Which has a direct relation to business...and our business at hand.
Challenging that price barrier is essential for everyone's ability to make more to earn a livable wage & save for retirement.
Goto: 2002 Economic Census
Enter [ Disc Jockey ] in the NAICS Statistics Sampler, upper right hand corner.
Disc Jockey Listing Classification
Click on [ 711510 ]
Disc Jockey Category
Scroll down about half way down the page.
You'll find a listing of states. Scroll down to ND. It lists 12 entities. Yet, ND at that time had nearly 300 MDJs. Incidentally, there were more individual MDJ companies listed in the Fargo, ND yellow pages than there were listed companies with the Secretary of State.
South Dakota: 21 yet over 275 companies existed in various forms.
Minnesota: 253 yet over 1,500 companies existed in various forms.
If a person outside the industry bases their business model on only the most visible entities, not the ones within the cracks, they may feel enticed to jump in. Only to realize after the fact, more MDJs exist within the cracks competing on price, lowering the core "street value" of MDJs.
Albeit, a long shot...it is my hope that illustrating where someone is...and where they could be will entice more to improve their situation.
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Dude,
While long post, bar graphs and pie charts in general bore me, I want you to know that I understand what you are saying and I have been saying the same thing all along.
A percentage of your gross covers cost, a percentage covers labor and the rest is profit.
By the way according to your Pie chart you are already at a point where your profitability is too low as a business, unless you are bonusing yourself out to keep company profits low. A viable service business should be showing at least a 30% profit margin and you are all ready below 25%. You need to either increase the number of gigs you do or find a way to decrease your cost.
While long post, bar graphs and pie charts in general bore me, I want you to know that I understand what you are saying and I have been saying the same thing all along.
A percentage of your gross covers cost, a percentage covers labor and the rest is profit.
By the way according to your Pie chart you are already at a point where your profitability is too low as a business, unless you are bonusing yourself out to keep company profits low. A viable service business should be showing at least a 30% profit margin and you are all ready below 25%. You need to either increase the number of gigs you do or find a way to decrease your cost.
From what I can see, the best alternative is to reduce costs. To get more gigs would require a) more advertising B) larger area coverage c) lowering fees? ALL of these alternatives COST more, and you are back to rolling that snowball uphill. If the numbers are accurate, that Back End Principle debate we had earlier comes to the fore.
Dude, all debates aside- as one of us to another-You MUST start cutting costs if those numbers are accurate. If not, any setback at all may set you up for bad times..Please take this for what it is: Sincere advice and concern, not a thread debate point.
Joe,
Acknowledged...
Keep in mind. These are percentages of 100% of the production costs. Not gross receipts.
You are correct sir...
Any business should be able to maintain a minimum profit margin to maintain a viable livable income.
Acknowledged...
Keep in mind. These are percentages of 100% of the production costs. Not gross receipts.
You are correct sir...
Any business should be able to maintain a minimum profit margin to maintain a viable livable income.
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Guest
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Dude,
If they are 100% production cost then they have little to no meaning to anyone but you. Are you saying you have no company profit, or is the pie chart for that one just one big circle of profit?
You go girl!!! Please let this pay out without removing it. Daytime TV doesn't come close.
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Yes, It may be uncomfotable for some, but having a little honesty slap you in the face from time to time isn't a bad thing.
Tammy, you certainly deserve an apology. Are you saying that there may be a little chauvinism at play here?
Tammy, you certainly deserve an apology. Are you saying that there may be a little chauvinism at play here?
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Damn that hurts, I was just taking a large swig of coke as that post opened up and it came out my nose!
What makes you think I have an issue with price threads?
I think I just have a problem with certain non-sense price theories.
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28 pages of gawpeldy goop...
The show I do here (in Northern MN), would fetch twice as much in the Twin Cities. I don't know why there is such a draw to keep arguing about price. Too many factors to consider... like "location".
I charge what I charge in order to get the gigs. If I charge too much, I won't get the gig... if I charge too little, I'll go broke.
If I could be happy charging $150 for a full blown wedding gig... then good for me. While I don't charge that little, I can't complain about the next guy if he gets it. The customer pays the price by hiring that kind of entertainment. We've all heard the horror stories. Quit complaining about these guys... they'll burn themselves.
Plain and simple... it the law of supply and demand. Fact of life fellow DJs. There are way more customers that only care about price, than quality... And, there will always be DJs who will take them as customers. This or any other price thread isn't EVER going to change that. Let's move on!!!
The show I do here (in Northern MN), would fetch twice as much in the Twin Cities. I don't know why there is such a draw to keep arguing about price. Too many factors to consider... like "location".
I charge what I charge in order to get the gigs. If I charge too much, I won't get the gig... if I charge too little, I'll go broke.
If I could be happy charging $150 for a full blown wedding gig... then good for me. While I don't charge that little, I can't complain about the next guy if he gets it. The customer pays the price by hiring that kind of entertainment. We've all heard the horror stories. Quit complaining about these guys... they'll burn themselves.
Plain and simple... it the law of supply and demand. Fact of life fellow DJs. There are way more customers that only care about price, than quality... And, there will always be DJs who will take them as customers. This or any other price thread isn't EVER going to change that. Let's move on!!!
Ive been told that supply and demand dont apply in the Disc Jockey business Hmmmm
....and completely off topic: You realize you only have 2 years on me you whippersnapper?
Here I was, thinking I was sitting at the feet of one filled with old fart wisdom.....Well, come to think of it, maybe I am!
Here I was, thinking I was sitting at the feet of one filled with old fart wisdom.....Well, come to think of it, maybe I am!
How about putting some of your theory into practice?
Here's a mathematical challenge for you:
I buy $17,500 of equipment in 1993. It will soon turn 15 years old. Assume all of this gear is still in use and it has a useful life of 15 years. It costs an average of $235 /year to keep this gear in working condition. Each year this equipment is used it generates and average of $35,000. The average inflation rate during this period is 2%. Other anual operating costs for this gear are $4,250. This gear is stored in a building that qualifies as a home office. The storage space alone represents 10% of the total home. The federal tax rate is 28%, my effective rate 16% and for simplicity you can ignore any state or local tax.
What was the present value of this gear in 2001?
What will be it's present value in 2008?
What would be the present value (2007) of that same $17,500 had I put it in a 15 year certificate of deposit at 5.25% ?
Bob,
What is the salary being drawn on the $35,000 or revenue per year?
Off to a meeting, I'll check in later.
What is the salary being drawn on the $35,000 or revenue per year?
Off to a meeting, I'll check in later.
....and completely off topic: You realize you only have 2 years on me you whippersnapper?
Here I was, thinking I was sitting at the feet of one filled with old fart wisdom.....Well, come to think of it, maybe I am!
Were you referring to me Joe? Im not generally called wise but coming from someone like you it means alot