Price increase
- Thread starter rickryan.com
- Start date
Let me ask this question Ryan. Since you did a price increase if you did, how has it been working in your favor?
It's too early to tell. I'm not sure if it will cause the phone to stop ringing but I suspect the opposite will happen. To date, I've been entirely too cheap and I'm certain it's costing us bookings, and with a much better clientele.
Thanks and I love what you said. By raising your prices that will most likely get tire kickers to not bother contacting you about booking your venue.
90k doesn’t mean you’re going broke, but it’s really not as much as it sounds for a single person in their 30’s/40’s in todays economy.
$6000 per month
- $2000 avg rent, utilities, renters insurance, etc for one bedroom
- $1000 avg car payment , gas, insurance
- $450 health insurance (nationwide avg give or take)
$2500 left over per month which on its own sounds ok, but breaking down further…
-$500 in groceries a month ($125 a week is likely just for bare necessities)
-$250 eating out for lunch at work or eating finner out instead of cooking (I’m being rather low here as lunch alone on workdays is likely $175)
$1750 left over is still ok but there’s two things that should be accounted for that haven’t been yet. One that should be done and the other that may or may not apply.
-$600 for investments (it’s advised that a person invest 10% of their monthly take home pay and by age 35 should have $90-$135k saved to be on track for a healthy retirement fund)
-$500 for the avg student loan debt payment which many people have well into their 30’s, often longer.
This would leave a person with a $90k salary $650 a month leftover ($1150 if no student debt). What about:
- emergencies like brakes or tires or an oil change
- going out with friends to a show
- an actual vacation which is quite expensive
- gifts for holidays
- basic stuff like buying clothes, a tv, laptop, or furniture etc.
- having a gf and going to fancy dinners or saving for a ring
- subscription services that likely eat another $100/month between Spotify, Netflix, Amazon prime, etc
- being in a wedding party costs $1000 nowadays between gift to couple, suit rental, bachelor party
Let alone this example is based on renting, which ideally this person should be saving money for a down payment on a home. You can argue the $600 for investments can go to that but that’s just delaying his own retirement investing making it harder to catchup.
Again, $90k is really not a lot of money for a single person. You’re not broke, and not quite paycheck to paycheck but you’re not living a life of luxury or getting far ahead. You can also quickly see how a typical couple with mediocre savings can’t afford to invest a lot in a wedding.
Now imagine this same scenario with less income, which is the reality for most. Hence why more people live with parents, drive old cars, don’t go to college, don’t invest for retirement, work multiple jobs, etc etc etc.
10 years ago you could make a completely different argument when rent was less, car payments were almost half of today, health insurance was less and the overall cost of living was less… and I think that’s where the disconnect is, not realizing how expensive things have gotten in a very short time.
To put it further into perspective, and getting a little more local, TWO people in nj making average incomes of about $65k each, with each having a car payment of just $500 and NO student debts or credit card debts of any sort, CANNOT qualify for the avg home in NJ unless they have $100k saved. Any less saved for the down payment, they can’t qualify (the average first time homebuyer puts down just under 10%).
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Mix, just got in my first post-increase inquiry. I hadn't even updated my .PDF brochure yet. I did post my first video last night to Tik-Tok and Instagram. It was an un-edited video clip I captured with my iPhone. After your suggestion to start posting videos I went back and found probably 150 on my phone. I'll be adding those to the website and will begin a regular, scheduled posting to TT and IG. Might go back to do boosted posts on those platforms as it seems Taso may be right that those platforms are used much more by brides.
Even in podunk Alabama, let me tell you that $100k (my day job just bumped into 6 figures) doesn't go very far, and I don't even have a mortgage or a car payment. Of course I do have a $1500 mortgage payment on my ex-wife's house. I have 18 more months to go before that's over. Being completely transparent, I pull in another $60k between venue and karaoke and side gigs. I feel like I'm slowly, slowly pulling ahead.
Sorry to hear about your financial issues. Just keep working to improve your venue.
I hope you're using a REALLY good small business accountant bc you can effectively wipe out a significant amount taxes owed each year, adding a substantial amount each year back to your wallet. W2 income isn't the same as self employed $60k. Self employment and rentals offers incredible tax saving opportunities that a w2 doesn't. Especially with your business, which involves real estate property that could offer MASSIVE depreciation and effectively wipe out your tax bill. This is not financial advice, but some things worth asking your accountant, and in all honesty, I hope your accountant is already doing this for you if applicable.
If understood properly, you may actually have 3 different business entities. The building as a rental property under your personal name (although I recommend an LLC for commerical properties like this). Ryan Acres LLC as an event hosting company and Rick Ryan Entertainment LLC aka your dj, karoake, band services.
- Ryan Acres LLC can pay your property rent each month (say $2000/m), which is a write off for Ryan Acres LLC and therefore lowering the taxes owed on the event hosting income. The rental income that a rental property makes isn't subject to fica, although the depreciation on the building (based on the step up basis plus any improvements, which you've done many) will likely wipe out any leftover income owed on the rental income, leaving the rental income with zero in taxes owed and absorbing 24k in income from your event hosting business.
- You can take this a step further, as your Rick Ryan LLC can pay rent (say $400/m) to the the property llc for storage since you're the house dj there and keep equipment there, and therefore lower any taxable income from your side gigs.
- With the value of the property, and with the amount of improvements you've done to your building and the depreciation available, the rental will likely show a loss (on paper), possibly lowering the taxes from the w2 income which gets taxed the highest.
- In addition whatever self employment income left over from the dj or event venue llc qualifies for the 20% pass through deduction.
If my assumptions are correct about your ownership and operations, then this is all totally 100% legal IF set up properly, and based on the numbers you said, could very well save you $5-10k in taxes a year. Again, this is not financial advice, but rather something to talk to your accountant if you're not already set up like this. This is the stupid stuff that gets me excited at 2am lol.
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The whole price issue is moot if we're not actually fully present in the thing we are selling.
Taso's price reflects two things: Availability (presence) and Confidence. His target audience is secondary to the fact that he is fully present and focused on what he is selling. (No distractions.) The thing we succeed at is usually the thing we fully immerse ourselves in.
Rick,
I don't know how reasonable it is to be running an "wedding venue" as a sideline while also working another full time career, and doing multiple karaoke and music gigs in the evening. I think the pricing model tends to reflect this, and the real hurdle isn't the price itself - it's people's desire to avoid risk.
Your pricing and sales messaging suggests you are hedging your bets and compensating for the possibility that your horse might not clear the jump. A 9.5 isn't a realistic goal because unlike a pony show the emotion tied to weddings requires the customer to perceive our performance as a perfect score. It demands that we are ALL IN.
Like a window to the restaurant's kitchen - I'd find someone to help you identify what or where your price/message is opening up that view.
Taso's price reflects two things: Availability (presence) and Confidence. His target audience is secondary to the fact that he is fully present and focused on what he is selling. (No distractions.) The thing we succeed at is usually the thing we fully immerse ourselves in.
Rick,
I don't know how reasonable it is to be running an "wedding venue" as a sideline while also working another full time career, and doing multiple karaoke and music gigs in the evening. I think the pricing model tends to reflect this, and the real hurdle isn't the price itself - it's people's desire to avoid risk.
Your pricing and sales messaging suggests you are hedging your bets and compensating for the possibility that your horse might not clear the jump. A 9.5 isn't a realistic goal because unlike a pony show the emotion tied to weddings requires the customer to perceive our performance as a perfect score. It demands that we are ALL IN.
Like a window to the restaurant's kitchen - I'd find someone to help you identify what or where your price/message is opening up that view.
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No, I don't.
I began as a DJ and have been in the event business for 40 years. My customers include other DJs, corporations, non-profits, government, business, churches, schools, and individual consumers.
This week is slow. I did a town meeting for 600 across 3 rooms with 7 video screens, 12 mics, and feeds for the live stream and closed captioning, 3 other planning meetings, sold a sound system to a country club, ordered 18 chandeliers for a large upcoming event involving 3 tents, together with lighting for the stage, dance floor, and a 240Ft long veranda of the main building, booked audio and multiple video screens for a presentation regarding the major renovation of a leading tournament level golf course, booked temporary architectural lighting for another event, produced stage audio for a student concert, accepted the A1 role for an upcoming college symposium, agreed to strike a major arts fest later this month, and am also supervising the internship of a very talented high school senior who can already program ETC controls like a seasoned pro.
How was your day?
No, I don't.
I began as a DJ and have been in the event business for 40 years. My customers include other DJs, corporations, non-profits, government, business, churches, schools, and individual consumers.
This week is slow. I did a town meeting for 600 across 3 rooms with 7 video screens, 12 mics, and feeds for the live stream and closed captioning, 3 other planning meetings, sold a sound system to a country club, ordered 18 chandeliers for a large upcoming event involving 3 tents, together with lighting for the stage, dance floor, and a 240Ft long veranda of the main building, booked audio and multiple video screens for a presentation regarding the major renovation of a leading tournament level golf course, booked temporary architectural lighting for another event, produced stage audio for a student concert, accepted the A1 role for an upcoming college symposium, agreed to strike a major arts fest later this month, and am also supervising the internship of a very talented high school senior who can already program ETC controls like a seasoned pro.
How was your day?
Busy enough. I'm not really interested in a pissing contest this evening.
Nice. You're like the Hunter Biden of line-art in the lawn.
New venue in my area where I have booked a reception in central Ohio. Young couple built new. Thought the contract and payment was interesting. May be useful Ryan?
Note: client pays for the liability insurance.
Galleries
twentythreenorthvenue.com
Galleries
twentythreenorthvenue.com
+ FridaY: $2,400.00
+ SATURDAY:$3,900.00
+ SUNDAY:$2,400.00
+ MONDAY-Thursday:$2,000.00
JANUARY-MARCH
We require a signed contract and $500 retainer fee to book. The retainer fee goes towaRds paying off the total balance. Half of the remaining balance is due 6 months prior to your wedding date and the remaining balance has to be paid by two weeks prior to YOUR wedding. Clients are also required to get a one day event liability insurance that can be obtained through any insurance company.
+ Friday: $3,400.00
+ SATURDAY: $4,900.00
+ SUNDAY: $3,400.00
+Monday-Thursday: $3,000.00
APRIL-DECEMBER
WEDDING
PRICING
This deposit schedule for a venue is very common, as well as the requirement for event insurance which is usually $250 or less. This is also how pricing is around here... seasonal and by date. This is literally the most hands off, simplified approach for an owner, AND what MOST couples expect when searching a venue in most areas. Picking the venue for the venue. Not that you can't have an all in package for couples that appreciate it... but this perhaps will get more traction in my opinion.New venue in my area where I have booked a reception in central Ohio. Young couple built new. Thought the contract and payment was interesting. May be useful Ryan?
Note: client pays for the liability insurance.
Galleries
+ FridaY: $2,400.00
+ SATURDAY:$3,900.00
+ SUNDAY:$2,400.00
+ MONDAY-Thursday:$2,000.00
JANUARY-MARCH
We require a signed contract and $500 retainer fee to book. The retainer fee goes towaRds paying off the total balance. Half of the remaining balance is due 6 months prior to your wedding date and the remaining balance has to be paid by two weeks prior to YOUR wedding. Clients are also required to get a one day event liability insurance that can be obtained through any insurance company.
+ Friday: $3,400.00
+ SATURDAY: $4,900.00
+ SUNDAY: $3,400.00
+Monday-Thursday: $3,000.00
APRIL-DECEMBER
WEDDING
PRICING
I was also wondering, does Rick need to include all 3 days? I can't imagine everyone needing 3 days for a wedding. Not everyone does rehearsals the day before (here it's usually before guests arrive), and not everyone needs anything the next day. If someone goes there and you give them 3 days, but they only need 1, there's no value in that despite the price being good.
Always great points Taso.
I have never got into the venue's end of the business but I have seen the practice used. I am having more venues telling me to have a certificate of liability and sending a copy. As I have slowed way down and become a single opp I buy single day event liability now.
I have never got into the venue's end of the business but I have seen the practice used. I am having more venues telling me to have a certificate of liability and sending a copy. As I have slowed way down and become a single opp I buy single day event liability now.