I Could Get A Live Band For That

In doing these comparisons, first off you have to take those that choose to violate the law, out of the discussion, as being an unfair comparison.

It was mentioned several times in this thread "costs".....this is where not enough time is spent.....

We all have different equipment, that cost us different amounts, purchased at different times. This alone can make a "huge" difference in one's cost basis, and then following this, what needs one has for revenue, and how much.

I for one have no lights! A significant additional cost to purchase, and as such would affect my rates. Not only the equipment costs but the upkeep, Bulbs etc...., and additional labor needed to do set-up. (At least for me...an old man..)

I would love to have lights, and someday I will, but until then, in this one category alone I have a cost advantage over someone who has a light display as part of their shows.

Bottom line as long as your pricing policies are a function of cost, you can operate profitably. There is a basic business/economic theory that simply stated says "....You are operating (at the margin) in profitable manner as long as your revenue generated covers/applies to your fixed asset costs....."

Meaning if you can quote a price for a gig that can make that next equipment payment, or cover the house payment your are operating ..."at the margin..." in a profitable manner.....For without that revenue you would be worst off........then with it!

Does this make any sense, as applied to the DJ profession?

Dude Walker said:

Tom,


1) Autonomous operation for nearly all other "profitable businesses" is the goal...not the fringe benefit.

Most small businesses fail to support an autonomous operation...let alone...liveable wages.

2) You've openly admitted the "screw em" mentality to justify lower rates.

3) The "screw em" mentality devalues the industry... because these entities devalue themselves with the "screw em" mentality.

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1) I began operating at a growing profit before the end of my first year, and have continued to do so. I also subscribe to the "screw 'em" mentality, because....


2) I can justify my lower rates ( to me- the only one that matters) because I make more money (higher profits) than most who charge higher. You already know how. I also say "screw 'em" because they say "Screw me". Also.....


3) People who overcharge for what they do- in ALL industries- are ALSO saying "screw 'em" to both others in their industries AND their customers. You know, the ones who won't even BOTHER to look for a mobile entertainer because they HEARD they cost too much from some one who was overcharged.

I don't de-value myself. I don't charge the highest fee around, but am upper mid-range, and flexible. I charge a FAIR price, both for me and the customer, because one of the things that I DO value in myself is honor.

The "Industry"?. A little honesty here. I like all the people I've met here and elswhere. I wish all of you the best. However, if you think I go to bed at night worrying about whether what I charge will effect your income, you've been getting too high a level of subsonics in your earphones. Of course, I feel bad about that because I know that all of you think of my income just before your heads hit the pillow.........Um, anyway, we are all independent minded people working at what we love to do to make a living. Period. Judging from what I've read (and posted) regarding the "let's get organized" threads, we LIKE it this way. Capitalism isn't just about making the money, it's also about having the CHOICE of how you do it...

One more repetitive redundancy of a point: As far as bar venues go, I have never been undercut out of a job. As far a private events: Though I may have lost to a lower bidder for an unseen prospect ( 'net or phone ), I have never lost a prospect that has taken the time to meet me.

Maybe fees aren't the problem at all...........:sqerr:

BTW- A newsflash for those who reference "The Industry": There isn't ONE....

If you read the threads in this and other forums, what surfaces is a huge amount of delineation. For instance, most of what comes up on "the Big Show" is related to weddings......though it's an open forum.


Note that you see multiple forums here. For instance: VDJ, Bar, Karaoke Hosting, Wedding, Corporate, School, Etc., etc. etc........


Bar Venue vs. Private Event DJs

Wedding specialists vs everyone else

Corporate, Hall, and Private Residence


Of course, let's not forget the pure Karaoke Host- a different species altogether.

Since, from what's posted, I gleen that these are all different "industries", I don't believe that references to a single industry ( as though united) are valid.

GoodKnightDJ said:

After I had landed my last wedding, that is, the client had signed the contract and had paid me the retainer in cash, we were chatting.

She told me about some of the prices she had come across and she indicated that for those that were $1,000 or more she could get a live band for the same price. She wanted to know how they justify themselves charging "such outrageous prices".

Now, of course I already had this one in the bag and I could have shruged and told her that they weren't worth the price, but, here's what I did say:

I told her that as far as bands were concerned, they have a limited repetoir of music and most take breaks every 20 minutes or so. DJs carry large collections that contain the original artists and DJs don't take breaks, or, at least their music doesn't.

As to the pricing, I did explain that some DJs are full-time and they need to make a liveable wage. And, I honestly do salute the full-time DJ for being able to do this.

She then asked why the full-time DJs couldn't just take on more events so that they can lower their prices to something more reasonable? I tried to explain that there are only a limited number of days in the year, a limited number of clients avaialable, and doing multiple events on one day in different locations is a scheduling nightmare. But, I kind of lost that argument.

How would you explain it if somebody told you as a full-time DJ that you could lower your rates and get more work?

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If she thinks $1000 for a band is high, tell her not to get married in N.Y.! lol. Bands in my area get a starting price of at least $8000. To me, if the first words out of a clients mouth is "how much", they are bargain hunting and in my opinion more concerned about price than what they are actually getting. Since I've joined this site, I've noticed a HUGE difference in what clients pay depending on where everyone is located. I can't believe it.
As far as bands go, I have nothing against them at all. The only thing that you can't forget is that no matter how great they may be, they aren't the original artist. Bands were very big in the 80's, but started falling back to DJ's in the early 90's (I can only speak from where I'm from). DJing went from just having a guy show up with two 1200's & a few crates of records to evolving & blowing up into a huge entertainment industry, incorporating much bigger sound systems, light packages, video packages etc. Companies such as mine have even expanded into "wedding centers", incorporating limo's, video, photography, tuxedo's, invitations etc. into the mix. Bands have stepped it up as well, from using more up to date equipment, and even utilizing CD players & Ipods to fill in during the breaks. Everything changes with the times, & to be on top of your game, you need to change with them. Unfortunatley, keeping up with the times can be quite costly.

personally,
i don't subscribe to the "screw 'em" mentality. I find networking with other companies to be much more productive for me.
I don't agree with everybody in my area, and they all don't agree with me and i get along better with some companies than others, but I'm always willing to find something we can agree on so we can network. I think there is plenty of work out there for companies or individuals that want to work hard and do it right. And plenty of work at every price range....at least around here.

Scott Hanna said:

personally,
i don't subscribe to the "screw 'em" mentality. I find networking with other companies to be much more productive for me.

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Just to clarify, when I talk about "screw 'em", I mean only that I don't raise or lower my rates in accordance to what others charge. That's it. I also network locally with like-minded MEs.

3) People who overcharge for what they do- in ALL industries- are ALSO saying "screw 'em" to both others in their industries AND their customers. You know, the ones who won't even BOTHER to look for a mobile entertainer because they HEARD they cost too much from some one who was overcharged.

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There is no such thing as overcharging in our industry. Nowhere are there set fees that we must charge for any of our services. A DJ company may charge as high a figure as they want if they feel they are worth it. It is up to the consumer to make a judgement as to whether or not they want to pay a higher fee for these services and do their homework to determine if the company is worth it.

We are in the "Entertainment Business". Why do the "Rolling Stones" demand such a high fee and lets say a cover band called the "Pebbles" only get a minimul amount for their services?

Well said Johnny.

Johnny Dee said:

There is no such thing as overcharging in our industry.

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In our industries, as in others, there is the "Charge what the market will bear" philosophy. Understood. I was speaking of client perception. A massive exaggeration: If a DJ charges 1000.oo for an event, gets the job, and shows up with an i-POD loaded with 100 songs on a Radio Shack tower, the client will feel screwed, and justly so. The client/customer will then pass the word that they've been "overcharged". If they paid 25.oo, then they will have gotten their money's worth.


Overcharging isn't neccesarily charging a high price, but charging a price that exceeds the client perception of worth.

The Stones charge what they do because they generate even more money as a business, and if they did a private, it's their fame they're selling. Unfortunately, the most famous DJ in the world ( whoever that is...) will never come close- Even ME!

GoodKnightDJ said:

No, I'm openly admitting the "screw em" mentality because I now could care less what the other DJs around here charge.

You're big on production costs; well, I get mine plus a profit margin. The business is sustainable and will remain such as long as I keep tabs on costs.

My only gripe are those around me that tell me to raise my rates, not for the betterment of the "industry" but for their own good because they can't justify their prices. My statement to them now is, don't worry about me. Worry about yourself.

Could I charge $1,200 and get it every single time? I have in the past based on add-ons and I have a package like that still. If I were taking all that stuff to events then I'd be charging $1,200 every time and be able to justify it. But my schtick is simple, no frills weddings that are planned and executed well. No need to charge $1,200 for that.

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This is my take...
Everyone should charge whatever they want... Period. END OF DICUSSION. This shouldn't even be a thread!
Charge whatever you feel that you are worth. If you get it... GREAT! If you don't... You better look at yourself, and then make a some adjustments.