Prices

[RabbittsKaraoke]

This is with the earlier posts in the UK Bride thread on the main forum and it does worry me a bit.

As I've mentioned on previous threads i'm just starting to plan as a KJ/DJ outside of my comfort zone but am concerned on what I should be charging people.
On the UK Bride thread a lot of people were scoffing at brides paying DJ's £165 for 5 hours.

Now, that to me would be an acceptable amount for 5 hours work.
Whilst I appreciate the fact that I'm not going to be aiming at weddings for my first giggs I am unsure of what to charge.

So while it may be a sensitive question, and i dont know if i can receive PMs yet, what sort of money did you guys charge when you first started out??....

....and allowing for inflation for the older guys....no offence

[Vectis]

It's that old equation again :)

( a / b ) + (c * d) + p

where

a = your TOTAL annual costs (and I mean everything)
b = your average annual gigs
c = your minimum hourly rate that you're prepared to work for
d = the number of hours required (including prep/set-up/waiting/tear-down/travel)
p = any profit margin you want to see on top


Most startups don't have numbers for a and b - in this case look to your business plan. If you don't have a plan, forget all of the above and just charge whatever you feel you can get away with because you're not serious about this as a business.

[Corabar Entertainment]

On the UK Bride thread a lot of people were scoffing at brides paying DJ's £165 for 5 hours.
Hi there.

Have you sat down and worked out a business plan yet? If not, you should do that first.

"How much should I charge?" Should be answered by:-

1. Working out what your overheads are going to be
2. Adding on a 'wage' for yourself

It's a mis-conception to say "£165 for 5 hours work" because:-

1. Business overheads can easily take £50 - £100 of that, and
2. It is certainly not uncommon for you to have worked 15 hours for that 5 hour gig - between general office work, dealing with the client, planning, travelling, setting up, packing down etc

So, that £165 could work out at only £4.33 ph ...... or to put in another way... almost 30% below minimum wage!

Obviously, it depends on how much time / effort you are going to be putting in, and how much you invest in your business, plus how much you want to receive as your wage - which is why you need to work out your own costings and not just copy them from someone else.

[Vectis]

Spooky :cool:

[Corabar Entertainment]

:lol:

When I posted I thought ":Censored: ...Martin beat me!" :D

[paulg]

Rabbitts - you're right. There's too much scoffing from DJ's about charges. £165.00 is on the low side for 5 hours but it is perfectly acceptable. If a business can't do well on over £30.00 per hour, it's not being run efficiently. I kept my prices competitive and ran at a nett loss for 2 years until all my capital costs were paid for. Now, things are nice and rosy!

As for hourly rates, I don't understand how DJ's think what they do is somehow more valuable than, say, tradesmen (and women) like plumbers, electricians and so on.

You can't talk about adding a wage onto your overheads if, when you start out, they are too big. If what you do doesn't bring in enough hours to pay a wage at a reasonable rate (and that's the trouble with this game), you need another job as well. That's why most DJ's are part time and it's usually the expensive ones who complain most about having no work.

I'm ready for the backlash.

[Solitaire Events Ltd]

That's why most DJ's are part time

And that just about sums it up alongside the rest of the post.

[RabbittsKaraoke]

Hi

Thanks for the input.
If I go on my business plan and according to that equation it means I should be charging £170 per gig as a start up.
I know discos that will charge £60 to do a nights work....but i guess you guys are in the same boat with regard to that.

So what should I do? Start off charging cowboy prices (as I have other sources of income to support me) and get business in or stick to my guns and charge the full amount? I know i'd have to do a lot less work for the money but as I say i'm starting out and I WILL make some c o c k-ups in the first few (not being negative just realistic).

Are customers more likely to re-book/recommend a crap DJ for £60 or a good DJ for £200+??

Sorry if this has been covered before in a previous post and understand if it will be edited out.

[Corabar Entertainment]

Rabbitts - you're right. There's too much scoffing from DJ's about charges. £165.00 is on the low side for 5 hours but it is perfectly acceptable. If a business can't do well on over £30.00 per hour, it's not being run efficiently. So you only do 5 hours work and have zero overheads... well done! :bang:

[paulg]

I'm full time. I make money from:

Going out myself and getting nearly 100% re-book rates.
Booking fees for co-ordinating other DJ's
Parnering add ons such as Bouncy Castles for kids parties and Hog Roasts
Merchandising - glow, flashing etc.
Installs
Equipment Hire
PAT Testing

Rabbitts - charge what you like. When you're new you need to get your foot in the door, cost is often a sweetner for some venues. We started out some years ago now at £50.00!! for a karaoke in a local pub. It was a fair price - very few discs, not the best equipment etc, plenty of mistakes, not much stage presence - but it suited the small venue and the punters were OK with it too. I never though that was the level I'd stay at so as I said previously, everything went back into building a business.

I'm now doing very well thank you and yet I'm getting it in the side. Strange old world.

[Vectis]

If the equation spits out £170, then £170 it should be.


Have you including EVERYTHING in "a"?

... tax & NI
... depreciation
... fuel + vehicle costs (or vehicle allowance)
... scooby snacks
... heat & light allowance
... insurances, licences, PAT
... stationery and postage
... etc. (just thinking of some of the things newbies commonly miss)


The main problem with going out cheaper is that it's very difficult to move on. Once folks know you're a £100 DJ, you'll always be a £100 DJ. Try and charge them £200 and they'll go elsewhere to a different £100 DJ.

Raise your sights and target the right market from the off and you'll do better in the long run.

Would you rather go out 5 times a month for £100 a night or twice a month for £250 a night?

[Solitaire Events Ltd]

I'm full time. I make money from:

Going out myself and getting nearly 100% re-book rates.
Booking fees for co-ordinating other DJ's
Parnering add ons such as Bouncy Castles for kids parties and Hog Roasts
Merchandising - glow, flashing etc.
Installs
Equipment Hire
PAT Testing

It says you are a council worker on your info! ;)

So you are an agent then?

[RabbittsKaraoke]

If the equation spits out £170, then £170 it should be.

The main problem with going out cheaper is that it's very difficult to move on. Once folks know you're a £100 DJ, you'll always be a £100 DJ. Try and charge them £200 and they'll go elsewhere to a different £100 DJ.

Raise your sights and target the right market from the off and you'll do better in the long run.

Would you rather go out 5 times a month for £100 a night or twice a month for £250 a night?


You're right and it's good advice. However, I'm a very small outfit at the moment and to charge £200-£250 for the little equipment I've got and for the inexperience would ruin me if it went wrong.
By that I mean I've seen some of the video's of some of your guys set ups and it's blown me away a bit....big screens so the dancers can see themselves dancing, pyrotecnics, fabulous mixing ability etc

I've none of this YET (is say yet as I have every ambition in the world to become as good as some of you) so i'm just gonna go out there and start where all this balances up both on the books (sensibly) and in my head using common sense i think.

[NKR]

You're right and it's good advice. However, I'm a very small outfit at the moment and to charge £200-£250 for the little equipment I've got and for the inexperience would ruin me if it went wrong.
By that I mean I've seen some of the video's of some of your guys set ups and it's blown me away a bit....big screens so the dancers can see themselves dancing, pyrotecnics, fabulous mixing ability etc

I've none of this YET (is say yet as I have every ambition in the world to become as good as some of you) so i'm just gonna go out there and start where all this balances up both on the books (sensibly) and in my head using common sense i think.

Honest answer - I respect that, so here is my recent price resume.

I started up again three and half years ago at £150, but was doing jobs at £125 if we had to. (I have 13 years DJ experience, had just been off the road for a couple of years).

We now charge £200 for a standard disco. Part time that works for what we do. However, weddings tend to be upsold to include my business partners singing so can get up to £800 for an all day job. (£425 ofr night do DJ and singer)

The key is don't take on something your gear and ability is not up to. You can build your business going forward as we are still doing.

But do listen to these chaps as they know how to make it pay full time.

I am a different kettle of fish, I love what we do and have a good day job so I am not making a living on it.

[Corabar Entertainment]

If the equation spits out £170, then £170 it should be.:agree:

...and I completely understand you wanting to go out for less to build your business up, and gradually increase your prices as your experience grows: after all, in almost all professions, the more experienced you are, the higher you are 'charged out' at, but just be careful not to under-sell yourself. :)

[paulg]

It says you are a council worker on your info! ;)

So you are an agent then?

No, not any longer. I was made redundant few months ago. I suppose that makes me a free agent.

[NKR]

No, not any longer. I was made redundant few months ago. I suppose that makes me a free agent.

Or a statistic - oops no politics.

[Solitaire Events Ltd]

No, not any longer. I was made redundant few months ago. I suppose that makes me a free agent.

No, I meant about coordinating other DJs. :)

[welby]

When I first started out in this business I thought it would be a breeze, but nothing is further than the truth.

It is very hard work and a lot of hard work that your customers don't see. It all needs to be taken into account when setting your price. Yes you can be flexible on price subject to time of year etc, or just making a name for yourself.

But what makes me cough over my cornflakes is when the customer turns round a says " a mate says he will do it for £100" can you price match?

No points for guessing the answer!

[StarZSoundS]

:agree:

...and I completely understand you wanting to go out for less to build your business up, and gradually increase your prices as your experience grows: after all, in almost all professions, the more experienced you are, the higher you are 'charged out' at, but just be careful not to under-sell yourself. :)


On one hand ....we have sympathy for the chaps just starting out who are looking to build up their experience.....trying to avoid a negative comment that could destroy them....and pricing themselves accordingly.


In the next breath.....we are moaning about all the Cheapo Discos....bringing down the Average National Price for our services.How do we know when we see the Nemesis(SID) that we all despise... that he hasn't just started out and is therefore OK to charge less....by your reckoning!!

[ppentertainments]

Going out myself and getting nearly 100% re-book rates.

Sorry, can you explain - Does this mean if someone books you for a wedding they rebbok you for their second wedding :confused: :confused:

Back on topic - the failure with a lot of DJ's pricing is they look too much at the hourly rate. Yes £30, £40, £50 an hour might seem a lot. But remember 2 discos a week is only say 10 hours, not your 'usual' 40 hours per week.

Also you are not neccesarily going to be out every weekend !!

Example : a 'one man band' doing well may get say 100 gigs a year. Each gig lasting say 5 hours on average. This is only 500 hours of work a year. £40 an hour only brings an income of £20,000 BEFORE expenses etc. Suddenly £40 an hour does not seem a lot.

Like Vectis said - work it out on what you NEED and how many bookings you genuinely expect.

[Solitaire Events Ltd]

But remember 2 discos a week is only say 10 hours, not your 'usual' 40 hours per week.


Sorry Chris, but rubbish.

I spend probably between 40-60 hours a week doing marketing, sales, admin, meetings, accounts, researching, backing up computers, sorting music, banking, sorting out gear, phoning people....

Hardly 10 hours for a disco is it? Actually going out DJing is the tip of the iceburg for me. I spend a lot more time doing all of the above to get a wage out of my company.

[Jays karaoke]

I agree, I work full time, dj 4 nights a week and all my free time is spent on my computer doing my books, emailing, making play lists, marketing, phoning people etc etc so that I can try and go full time. the is a lot more to djing than just turning up with your gear and playing music for a few hours.

[StarZSoundS]

making play lists,

I'm sorry Jay....but i've never made a playlist in my life!!:D :D :D


I've reacted to customers playlists but never made one.;) ;)

It ruins the spontaneity.If you are mainly Karaoke as your name suggests what do you need a playlist for anyway??:eek: :eek: :eek:

[ppentertainments]

Sorry Chris, but rubbish.

I spend probably between 40-60 hours a week doing marketing, sales, admin, meetings, accounts, researching, backing up computers, sorting music, banking, sorting out gear, phoning people....

Hardly 10 hours for a disco is it? Actually going out DJing is the tip of the iceburg for me. I spend a lot more time doing all of the above to get a wage out of my company.

No, but the op and at least one subsequent post stated that £xxxx was too much for 5 hours work. As far as clients are concerned, they are also paying us for 5 hours disco.

I was making the point that the hours worked does not play a factor realistically. It is the end ££ which matter not 'hourly charge' ;)

(Still have not explained than too well :D )

[rob1963]

So while it may be a sensitive question, and i dont know if i can receive PMs yet, what sort of money did you guys charge when you first started out??....

....and allowing for inflation for the older guys....no offence

Wow, this must be a first...mine is the 26th reply to this thread, but only the SECOND one to answer the question posed by the OP! :eek:

When I started (with a friend) in 1984, we charged £60 a disco.

Allowing for inflation, that's just over £125 in today's money.

:)

[Solitaire Events Ltd]

No, but the op and at least one subsequent post stated that £xxxx was too much for 5 hours work. As far as clients are concerned, they are also paying us for 5 hours disco.

I was making the point that the hours worked does not play a factor realistically. It is the end ££ which matter not 'hourly charge' ;)

(Still have not explained than too well :D )

Apologies for misunderstanding...(I think) :confused: :D

[RabbittsKaraoke]

Wow, this must be a first...mine is the 26th reply to this thread, but only the SECOND one to answer the question posed by the OP! :eek:

When I started (with a friend) in 1984, we charged £60 a disco.

Allowing for inflation, that's just over £125 in today's money.

:)



Thanks Rob!! :D

[Solitaire Events Ltd]

I also started in 1984 and was charging £10 a booking.

I'm not quite sure what use that information will be though? :sj:

[RabbittsKaraoke]

I also started in 1984 and was charging £10 a booking.

I'm not quite sure what use that information will be though? :sj:

Not shillings and halfpennies? ;) :D

[Solitaire Events Ltd]

Not shillings and halfpennies? ;) :D

Yes, and my decks were steam driven as there wasn't any electricity...:mad: :D