Hurry! Hurry! Step right up!! Discount galore!! Here!!

To many ads? Support ODJT and see no ads!
DeeJayRig

DeeJayRig

New DJ
Dec 1, 2006
316
0
125
san francisco bay area, northern california
www.latinmusicdj.com
To discount or not to discount.

In marketing there is a term called supply and demand and before I launch my question, please hold your thought there for a moment and briefly introduce my story.

For years I offered a discount whenever doing events on any other day than Saturday. Just like I offered discounts to non profit organizations and middle schools.

I truly don’t know why I did that, maybe because I thought it was the thing to do, or because other vendors were doing it, particularly venues and catering companies.

My operation consists of me, myself and I. Occasionally I send gigs to other two dj that “work for me” and to my son who is now 18 and doing gigs for me and on his own.

In addition to that…here’s where it gets tricky: I also do subcontract work for three other companies around the area. One of the contractors called me and asked me if I would be willing to give out a 20% discount for a Sunday gig. I said without thinking: “wait a minute, the speaker is not going to weight less on Sunday, the bride will be less picky on Sunday, gas will not cost me less on Sunday, my back, my brain and my muscles won’t give me a break because it is a Sunday, therefore, I will have to charge you full price.”

He insisted in saying that he extends a discount to his clients, but I reminded him that while he is out sipping wine with his wife, his dj are running around like crazy, since he subs out most of his work.

As of today, I will no longer offer a discount, because of all of the reasons that I listed, but I would like to know your opinion, and the rationale behind issuing discounts.

Another folly: Giving discounts to distant relatives and acquaintances. I have found that those are more demanding than people who come from other sources.

What’s your take on discounts?

Regards,

Rig
 
I choose to decide when Im in a discounting mood but most always my price remains the same any day or anytime of the yr. for so many of the reasons you listed. As I feel I give an honest discount price each time in light of the 6000 dollar DJ in a town near you.
 
As far as supply versus demand goes, there is more supply than demand for DJ services in this area. Delaware is becoming a "destination" state... folks are moving here from northern states to escape the comparatively high cost of living. If we can grab a newcomer to DE we can get a profitable show. If the lowballers get to 'em first, ohhhh... Wilbur. :(

My thoughts on discounts: They have their place in non-profit endevors.

My personal opinion: Never offer a discount for for-profit, private shows. Reason I say this, people will often ask first. If they ask, then you may get their attention by offering what I call a "phantom" break.

The "phantom" discount is as old as car dealers. Price high and leave some room for dickering. Yeah, I know... people shouldn't think they can dicker with DJ companies but welcome to the real world of business in the 21st century, compliments of the Wal-Mart mentality. :(

Before anyone flames me, hear me out. Name one consumer product manufacturer that isn't beholden to Wal-Mart. Let's face it ~ Wal-Mart is the biggest customer of manufactured consumer goods in the world. They got there by using the phantom discount. They may boast about low prices all they wish but they are charging consumers $5.00 for things that cost 50 cents to make. They ain't building those big-assed stores all over the country by giving things away.

I would love to be the Wal-Mart of DJ companies. For the cost of five cents on the dollar?? You'd better believe it. :D

Yeah, I understand the difference between goods and services. We learned that in 5th grade from Ralph Nader. We learned something else, too ~ goods and services are worth only as much as the customer is willing to pay for them. Unfortunately, customers see all DJ companies as alike. That's why many customers shop for cost.

But I digress. Discounts are fine for non-profits like charitable shows. In our experience, we prefer to barter for promotion of our company. If you've got your name out there in the promotions it's like gold.

Everyone else pays the full monte. We don't leave the driveway for less than it costs us to do a show.

Just some thoughts. :)
 
Before I say my views on this, just remember one thing, my personal idol and who I pattern my life after is Donald Trump (and yes J Tuck, I know I still owe you a book, lol).

I like making deals and finding bargains. But I don't myself to the bargain someone else finds.

Hopefully we all do market research and other things to set out prices in a reasonable zone for customers. The reason for this is to determine what the market can bear in order to make the profits you want to make. Discounting these prices destroys the projections you have set for the company.

You have to stand your ground. In my humble opinion, offering discounts is a marketing tool which screams "I am not as good as my initial price would indicate".

Everyone should feel confident enough in their product or service to set their price and then stick by it.
 
Personally I will give a slight discount for non profits that use us all the time and not just one shot deals. I will also give slight discounts for weekday shows (I have a wedding booked for a Wednesday in Sept the first weekday show in a while). The thing is though my regular rate is slightly above market average so the discount just puts me in the same price as my competitions weekend rate

Slight discounts applied right can be a very good marketing tool
 
I feel one also has to look at just how long you have been in business. My company has been in the market since June 2004. So at this time we are still battling the name recognition game. As more word of mouth customers come along we start dropping the discount. When they know of you its much easier to qualify the pricing structure.

At this point in the game I'd rather be working for a little less than not at all. Sitting home holding to my price gun gains me nothing. No money and obviously no visibility. Sometimes you have to work a little harder to get to the work smart position.
 
the dogman said:
I feel one also has to look at just how long you have been in business. My company has been in the market since June 2004. So at this time we are still battling the name recognition game. As more word of mouth customers come along we start dropping the discount. When they know of you its much easier to qualify the pricing structure.

At this point in the game I'd rather be working for a little less than not at all. Sitting home holding to my price gun gains me nothing. No money and obviously no visibility. Sometimes you have to work a little harder to get to the work smart position.
Click to expand...

The problem is, once those word of mouth customers start coming in, they will be doing the "well, you gave my friend a discount" line.

Instead of discounts, I would suggest maybe starting your pricing a little lower, then you can raise it once you get established. Would have the same effect of what you are doing now, and would not have to worry about the down the road issues discounts can cause.
 
patrickrlewis said:
The problem is, once those word of mouth customers start coming in, they will be doing the "well, you gave my friend a discount" line.

Instead of discounts, I would suggest maybe starting your pricing a little lower, then you can raise it once you get established. Would have the same effect of what you are doing now, and would not have to worry about the down the road issues discounts can cause.
Click to expand...

Understand what your saying Patrick...but...if you charge less now and then raise your rates you still can have the same issue....you did our friends wedding last year for this amount but now its higher....I dont believe there is a simple solution.

I know of a couple djs that did a wedding for one of the kids in the family 2 years ago and now one of the other kids is getting married....you guessed it well you charged this much before....doesnt matter that it was 2 years ago.

Our society has been programed on the deal...sale....sale....sale. And before you say this is a service industry I simply ask that you wipe the bubble you are living in off its foggy. People demand price to be what they want. There are to many gurus out there trying to teach people to save a buck.

Pricing is what you make it...if you know the break even of your business and you can reach that goal so be it...then also realize what you need to make out of it you'll be OK. Bottom line I know my business and seem to know my customers as things are getting better. When the day arrives that I stick fast to my over all goal thats the day I cant add anymore bookings. Until then I'll make money and be happy.
 
Price break/discount whatever you want to call it...we offer it to the potential clients if they book both the photography and the dj service.

Works for us, since we're a little "different" than anyone else in our market.

Our prices have gone up in the last couple of years and the discounts have gone down, but we're still offering them value for their money.
 
I rarely offer discounts. I do the occasional charity event; typically requiring a written request/report of the cause, etc. Those might be anywhere from discounted to free. Anything else I maintain the position that it is as much work on tuesday as it is on saturday.
 
Maybe... I've been burned too!!!

I did my wife's (Marie) sister's wedding a few years ago, and told them that it was my gift to them. I paid for my gas to drive 200 miles and was "thinking" a small "tip" would be nice. Didn't happen.

Last month, her brother calls and asks for a free show for his daughter in law who was diagnosed with cancer, and wanted a fundraiser. I would again have had to drive 200 miles to get there, so I asked for $150 gas to do the gig. They didn't want to pay and got upset with me.

Two weeks ago, (after the benefit) the son and daughter in law show up (up here) with all kinds of toys they bought from the money they got at the fundraiser. Marie's mom has a resort a few miles down the road, and the son is playing on the beach with his brand new metal detector. Damn, was I glad I didn't hand over any of my time or money.


Here's an idea that I'd do next time. Charge full price, with the agreement that you'll give back fifty percent if all of the "promotional" promises are met. It will keep them honest.
 
You tell 'em, Ty....

Free and discounted gigs tend to beget more free and discounted gigs. Especially so when you're talkin' relatives, lol. :D

I will always remember the first wedding I did for the BIL. I was hoping he would slip me some cash (like he did for his buddies who provided the cake, bride's gown etc) but that didn't happen. Bear in mind, this guy ran a tree surgeon business... four digits for a day's work.

Guess I was a glutton for punishment in those days. I did a lot of free shows for the in-laws over the years, including yearly birthday parties for one guy who was an auto tech.

I was having clutch problems with my truck one time and got him to fix it. He expected to be paid. So I said fine. I wrote him a check.

Well, the next birthday party rolled around and he wanted me to DJ. I quoted my regular rate and offered to send a contract. He declined.

That was the last of the freebies. I never did another show for 'em again. :)
 
No more "hard time" "gimme a break" discounts for me.

The only time discounts are going out now are for causes I truly believe in and military. (a cause I truly believe in!)

Why??

I don't get a break from much of anyone else!

I just spent 2 months out of work. Credit cards, house payment, electric, gas, school supplies, all were still needed, and they didn't give me any slack because hard times.

I may be getting stingy and crabby in my old age, I don't know. Just not for me.

Bartering is ok. Equal billing (advertising) as in another thread, is ok. (t shirts, promo materials with names.) That is cool.

No more desperate to bite, just because someone gives me a sob story.

Funny acronym.

Somebody
Other
Benefits
 
We offer discounts on Non- Saturday gigs for 2 reasons....

1)it works....i've found that most people that are having their reception or event on a non-saturday are doing it because they are budget minded.

2)Supply and demand.....a lot of Saturdays we will have 4-5 shows going...sometimes more. Rarely will we have more than 1 show on a friday or sunday...the guys love picking up shows on Fridays or Sundays..and they are willing to do it for less...so i am willing to do it for less.


As far as relatives go, I give a discount when i can. My Sister in law is having a sweet 16 party for my niece. She called me and asked me how much to do her party. I said i will do it as a birthday present as long as it's not on a Saturday. She moved the party.

Any discounts or freebies given still get an agreement WITH THE REGULAR PRICE SHOWN and then the discount, so they know how much they are getting off. Not much benefit if someone doesn't know what they are saving. If you just give someone something for free, they might not know if they saved $50 or $1000
 
I do benefits for Non-profits, and it has been beneficial. I have gotten numerous gigs as a result of someone seeing me at one of these affairs.
It is great for private parties, corporates. The individuals who attend these events are usually the more financially fit people who can afford to throw parties, get together's where they want music. They have seen me work, so it's an easy decision to make, and price is not usually a consideration........
 
I often charge much higher rates for weekdays than for weekends.

There are fewer qualified people available to do the type of work that occurs during the the typical business workday, so the demand is higher and the pay is far better.

The number of weekend warriors capable of doing your weekend wedding for a reasonable fee is quite large, so on average people can afford to be more price conscious.
 
Now that I no longer have my day job, I plan to discount my rates for the local schools in my area for a weekday show or dance. Proms and homecomings won't get the discount. I will mainly do it for my daughters school because of all the additional business it may draw in.
 
I don't offer discounts on our base fee.

We book a lot of larger shows so what I will do is maybe offer the second Plasma at a discount etc. But these discounts are only on our up-sells not on our base fee. It can still make the client happy and I will only do it if I feel I have to to swing a client to book the up-sells.
 
Proformance said:
I often charge much higher rates for weekdays than for weekends.

There are fewer qualified people available to do the type of work that occurs during the the typical business workday, so the demand is higher and the pay is far better.
Click to expand...


I never looked at it that way-thanks! I would have thought cheaper.
 
You must log in or register to reply here.
Top Bottom
Back