Overpricing

[JAMdisco]

I've just had a direct request from uk-disco for a wedding reception at Leconfield (about 20 mins away for me - so not far). However he wants the disco from 7:30 - 01:30. Now I think 6 hours for a disco is too long (4 or 5 max) so I've overpriced by about £100.

This is what I replied with:-

Hi Paul,

I am available on that date and my rates for this kind of event are £60 per hour. As it's for 6 hours that would come in at £360. I am willing to drop it a little as I appreciate that this is a lot of money. I am prepared to do it for £330.

I am sure you've heard some of the horror stories about unreliable DJ's and the reason my fees are what they are is due to the fact that I am reliable, professional and all my music is legal (i.e. no free downloads) so you can be sure that you will get the very best in digital crystal clear sound. I also have the latest in LED intelligent lighting and am able to 'wash' the venue in your chosen colours (which can be changed from the DJ console).

I also have Public Liability Insurance to £2 million and all my equipment is PAT tested for electrical safety. Cerificates can be shown on request.

I would advise a speedy response as you can probably appreciate, this is a very busy time of the year.

If you would like to book my services all I would require is your full postal address to enable me to send out a booking pack which would be returned within 10 working days with a booking fee of £80. This would then secure the date and fix the price. The balance of £250 would be either payable on the night in cash before the disco commences or by cheque no later than 10 working days before the event.


Hope this answers any questions, if not please feel free to contact me on 01482 xxxxxx after 6pm (weekdays only)


Kindest regards

Justin Addison
JAMdisco.

Do you think this is an ok response and if not what would you have written?
I am not too bothered whether I get this or not but I must admit £330 for one night isn't bad. :D

I am mainly looking for different ideas to 'sell' myself, any help would be appreciated. Also I'm sure other members of the forum might get some ideas from the reponses on what to do and what not to do.

[theoloyla]

Sounds fair enough to me.

[Penfold42]

I agree....but why mention two prices......?
Just wonder why.....:)

The 1st price is fair as you are working over 1:30 am.....that's a long day....IMO.

[Vectis]

How is it "overpricing" if your charging structure is £x/hr ? :confused:

Maybe have a think about how you charge. For me there's the seasonal element, but essentially its ((expenses per annum) / gigs per annum) + (x number of hours * desired hourly rate).

So if my running costs were £100 per gig and I worked on £25/hour rate then a 4-hour gig is charged at £200 and a 6-hour gig at £250. Much easier to justify IMO and then you don't have the 'guilt pangs' that you obviously felt earlier!


OK so the above calculation is simplistic - what about employees? (they, and their associated costs (NI etc.) are "expenses")... what about different rates for performance time, preparation time, meeting time, travel time etc. etc. - just trying to stimulate the discussion

[JAMdisco]

I agree....but why mention two prices......?
Just wonder why.....:)

The 1st price is fair as you are working over 1:30 am.....that's a long day....IMO.

Well, thing is, I got married last year and as you can pretty much appreciate, as soon as the word 'Wedding' pops up, so do pound signs in people eyes, selling things. Our disco was £220 and to be honest, not worth half that IMO, but I wasn't going to tell him I was a DJ (very unprofessional I think).

So the reason I put 2 prices is that, although I am overpricing, I don't want him to think that, and that he is getting a considerate and helpful DJ (which of course, I am) :whistle:

[Penfold42]

OK...fair play.

Without getting into a price war......I actually think £360 is a fair price!
IMO :)

[Sam]

If people are not prepared to pay the rate.. they aint worth doing business with :o ... my usual strategy that works :D

[JAMdisco]

OK...fair play.

Without getting into a price war......I actually think £360 is a fair price!
IMO :)

Actually the more I think about it, so do I. It is a long time and even at 20 mins away, I won't get home til around 02:30-03:00 :eek: :eek:


If people are not prepared to pay the rate.. they aint worth doing business with :o ... my usual strategy that works :D

Sorry, should've multiquoted :o

I think that is a very good attitude towards pricing. I think I have a tendancy to under-price myself most of the time as I don't like to think I'm 'ripping someone off' but the more I've thought about it over the last few months, I think with the service I provide, this is not the case, how can it be ripping off if IMO I'm giving an excellent professional service

[Sam]

OK...fair play.

Without getting into a price war......I actually think £360 is a fair price!
IMO :)

And yeh. So do i.
My prices vary a lot depending on event. But for that I think 360 is a good deal! IF they do not want to pay that.. are they the sort of client you want??

[Sapphire Disco]

Why bother offering a discount it may not be asked for and leaves you less room to haggle should you need to.

[Danno13]

Looks ok to me, apart from I would personally re-word the 2nd paragraph as it come across too negative as it is IMO and its almost like your making an excuse for your price.. which might actually be quite pretty competitive, so why hint that its expensive and make think they can get cheaper?


You'll be pleased to hear that I'm a reliable, professional and skilled DJ, with a wide range of music. You can also be sure that you will get the very best in digital crystal clear sound. I also have the latest in LED intelligent lighting and am able to 'wash' the venue in your chosen colours (which can be changed from the DJ console).

For your peace of mind, I also have Public Liability Insurance to £2 million and all my equipment is PAT tested for electrical safety. These are often required by your chosen venue, who we're happy to liase with prior to your event.


I wouldn't mention the amount of PLI either.. as £2 million isn't really alot by todays standards.

[501damian501]

hi their, i would seriously up your PLI to £5million, 2million is not alot today.

I would say a min of 5million for discos and a min of 15million for events ect

many thanks damian

[rob1963]

Hi Justin,

I think your reply was fine, except I wouldn't have mentioned "horror stories" or "unreliable DJs" myself.

Although the gig is 6 hours, it's unlikely you'll be playing full-on for all that time...I'm sure a reasonable part of it will just be background music.

:)

[Solitaire Events Ltd]

As it's for 6 hours that would come in at £360. I am willing to drop it a little as I appreciate that this is a lot of money. I am prepared to do it for £330.



Why is that a lot of money? In comparison to what? Check out other wedding services. My best friend is getting married next year and has just been telling me that the photographer is 3 grand!

[theoloyla]

Further to this I dont find too many weddings that go on till that hour. Many of them involve old people and children and those who prefer their telly to disco that they tend to finish earlier than other gigs.

[JAMdisco]

Why is that a lot of money? In comparison to what? Check out other wedding services. My best friend is getting married next year and has just been telling me that the photographer is 3 grand!

Well I personally think that is obscene. I would tell the photographer where to stick his camera if they came back with that quote. Actually I wouldn't really, I'd just politely decline the offer.

IMO, as soon as the word 'wedding; crops up it just gives people the opportunity to rip people off. I think it's unfair and although I do it to a certain extent I still feel I am giving genuine value for money.

[Solitaire Events Ltd]

Well I personally think that is obscene. I would tell the photographer where to stick his camera if they came back with that quote. Actually I wouldn't really, I'd just politely decline the offer.



But you don't even know what they are offering for that! That's a classic example of price shopping without looking into what is being offered.

If you take that attitude for a photographer, how are you going to justify charging what you want for your services?

[Sam]

One of my brothers also just paid over 3k for a photographer.

[Solitaire Events Ltd]

One of my brothers also just paid over 3k for a photographer.

If that's the multi millionaire brother, I'd say he's being tight...:p

[Sam]

If that's the multi millionaire brother, I'd say he's being tight...:p

Nope.
It was the RAF Doc brother :D

[soundmaster mobile disco]

I deliberetly overpriced a wedding reception for Sunday night passed as i did not want to take the booking as i was working thursdsy\Friday and saturday night.

As it was the Bride and groom got back to me and said YES we want to book you for our wedding reception.

Lesson learned if you are going to overprice a job because you dont want it its better to A) make sure you give them an unrelistic price.
B)Tell them thanks for there enquiry but i am alredy booked that night.

I would rather make my company look attractive with reasonable\fair prices and tell customers sorry but i am alredy booked that night rather than give an extortionet price that might reflect badly on my companys reputation for further bookings.

[Dragonfly]

so ..... just to put this in context if £360 is alot of money how come £330 isn't ????

[wensleydale]

in the big scheme of things £330 or £360 is a drop in the ocean when yuo are spending £15000 plus on a wedding.

[Sam]

in the big scheme of things £330 or £360 is a drop in the ocean when yuo are spending £15000 plus on a wedding.

Yes.. cuts like that will only encourage the cheap skates to go for it.
And as I said above.. you have to wonder if this is the clientelle you want - who will put money before quality?!

Just food for thought


Sorry, should've multiquoted :o

I think that is a very good attitude towards pricing. I think I have a tendancy to under-price myself most of the time as I don't like to think I'm 'ripping someone off' but the more I've thought about it over the last few months, I think with the service I provide, this is not the case, how can it be ripping off if IMO I'm giving an excellent professional service

Sorry.. just saw this post.
It is an easy thing to do... under-pricing.. as you want that gig.
But i'm now in a "happy place" where I can sit back and think..
well if they wont pay this.. i really don't want to work with them..
and it works for me! I am getting a lot mroe high end gigs than before... however I do not rely on the industry for my main source of income.. and as you may know.. I am "retiring" from it (for some time at least) in November.

[Candybeatdiscos]

Personally i feel that your undercutting yourself, i would be looking for about £450 personally.

Anyways, my main problem with the reply was that you have quoted a price then tried to defend it....WHY!?

Your price reflects your disco service, not others, if they dont pay your price and go with say a cheaper option they get a cheaper service, i mean they aint going to poundstreatchers for a wedding dress (i hope), and they aint going to use asda brand food for thier meal/buffet (i hope) .....

[ppentertainments]

Personally i feel that your undercutting yourself, i would be looking for about £450 personally.



Maybe in Fife but do you not know how tight yorkshire folk can be :D :D :D

[Candybeatdiscos]

copper wire was invented by two fifers fighting over a half penny piece mate.....(me and Shaun)

[ppentertainments]

copper wire was invented by two fifers fighting over a half penny piece mate.....(me and Shaun)

:D :D :D :D :D :D :D :D :D :D :D :D :D :D

[soundmaster mobile disco]

Hey Gary if i quoted £450 for a wedding reception in this area (Fife) i would have no hope.You may get the occasional one off event but if you charged £450 for a wedding i would like to know how many bookings you actually get at that price! (in Fife)

[Shaun]

Hey Gary if i quoted £450 for a wedding reception in this area (Fife) i would have no hope.You may get the occasional one off event but if you charged £450 for a wedding i would like to know how many bookings you actually get at that price! (in Fife)

I've had a quite a few in that ball-park figure in Fife, not as many as I would like though. There are people in every area that are willing to pay top dollar for a quality service, it all depends on who you market yourself too. Saying that though...most of my more lucrative events (and most of my events in general) are outside the Fife area.

[Candybeatdiscos]

I have had 3 wedding enquiries for hotels in Fife (bearing in mine i only had 22 gigs in the year i worked for myself) and quoted £450 for them (all 5 hour gigs) and had no problems with them, if someone is having thier wedding reception at the local masonic i know they aint going to pay that amount so will drop it by £50 but all in all i had no problems, i just need to get my gear sorted so i can go back to that....

[soundmaster mobile disco]

I think that i will now have to review my prices

[Shaun]

I think that i will now have to review my prices

I see no reason why you shouldn't be going after the higher paying events if that's where you'd like to be. You have a nice set-up, and from our many chats on the phone it's apparent that you have an excellent business sense. I've also heard first hand that you put on a really great show (My other half Wendy says it was great to meet you at Gania's party recently). :)

[CRAZY K]

in the big scheme of things £330 or £360 is a drop in the ocean when yuo are spending £15000 plus on a wedding.

Todays paper says the average is now £20,273 --according to You and Your Wedding Magazine.

£360 Thats about 1.75per cent of overall Wedding spend cost.

If asked in a survey I wonder what percentage the average B and G would choose of their budget to spend so they had a really successful Reception?

10 per cent????????

So thats errr £2,027 then for the Entertainment.

5 per cent thats £1013

Makes you think eh?

CRAZY K

[andyw]

i think that you need to take the secound price out,don't look or sound good imo if you are offering a discount from the start(reminds me of double glazing salesman our usual price is but for you we will do it at),give them the price you want if you say 360 and they get back to you and say it is a little too much then maybe offer to do it for 330.i also don't like the mention of the rogue element and unreliable dj's,you need to sale them the quality of your service not frighten them into signing on the dotted line

[CRAZY K]

We dont do haggling--does your Solicitor, Accountant or Dentist do that --the only time is if suits YOU--Ive just set up a deal (hopefully) where we reduced the cost of a Wedding by getting one of the forum to do the Disco which suits me:D

You were asking about marketing---possibly a bit of differentation might help?

Interestingly when I spoke to the Business Link expert on preparing this he said---dont bother with all the reliability guff--its a given:eek:

Concentrate on what people will get out of your Entertainment Service.

Although we work in different markets there are many similarities--- most of the time I have a quick copy and paste quote routine which looks something like the example below--if it could be adapted to help your presentation of your "proposition" then by all means feel free--the intention is not to generate a discussion about my business approach--just marketing angles you might or might not want to use--:D

Works for me--:D

I like the bullet point approach--people may get turned off if theres too much to read ----

Dear xxxxxxxxxxxx thanks for your enquiry, below is a quote to supply the Justin Party Disco Show for your special day, if we can help further please let us know--if you need recommendations please tell us.

To see live action see below--turn up your speakers!!!!!!!

SELECTION AVAILABLE --PHOTOS OR VID CLIPS

BIRTHDAY
http://uk.youtube.com

WEDDING
http://uk.youtube.com

RETIREMENT PARTY
http://uk.youtube.com

VILLAGE HALL SCOTTISH PARTY
http://uk.youtube.com

kind regards

xxxxxxxxxxxxxxxxxxxx

OFFICE MANAGER


===========================================



QUOTE FOR --XXXXXXXXXXXXXXXXXXXXXXXXXX

BIRTHDAY PARTY 2008

VENUE---

ENTERTAINMENT ---JAM PARTY DISCO

ASSUMED PLAYING TIMES:

The cost of our services for the event including travelling would be
( no vat )


WHAT YOU GET

A TRULY PROFESSIONAL APPROACH

YOUR CHOICE DISCO of Disco/Party Music from the Playlist

SEE WEBSITE Includes a collection of Music from the 60s to the 90s plus excellent Party Music.

PLUS we play YOUR own favourite requests supplied before the event.

There is also a menu of more modern tracks available to choose from
SEE WEBSITE

AT YOUR FUNCTION WE ALSO HAVE IMMEDIATELY AVAILABLE XXXXXXX TRACKS DIGITALLY STORED ON A HARD DRIVE

You, your Family and Guests can decide before the Party what the Music
is going to be - YOU CHOOSE- no excuses for people not Dancing!


SO HOW DOES THIS DIFFER FROM A STANDARD DISCO?

The event is run by Justin etc

you will have to work this out

xxxxx years experience working successfully at Weddings and Socials as a DJ.

All Disco and Party music mainly chosen BY YOU AND YOUR FAMILY
and played to YOUR instructions including sound levels

OTHER FEATURES THAT WE INCLUDE

Public Liability Cover £xxxxxxxxx million in case of accidents

Top of the Range xxxxxxxxxxxxx Disco Sound System for clear announcements and music quality

Complete Lighting control for your function---Disco Lighting Effects
specifics to be inserted

PAT Safety Tested Sound equipment to help prevent accidents and help comply with Health and Safety Requirements which will apply to your function

Written Contract confirming your booking

Courtesy call a week before to check everything is ok

Meeting beforehand ( if required ) to discuss arrangements

End of quote
==========================================

HTH:D :D :D

CRAZY K

[Sam]

I can't stand it when people put "officer manager" etc when it is only them doing it.

But of course you may have a whole team.. I don't know!.:)

[Solitaire Events Ltd]

We dont do haggling--does your Solicitor, Accountant or Dentist do that

No, but people haggle over thing in retail and a lot of other services.



Interestingly when I spoke to the Business Link expert on preparing this he said---dont bother with all the reliability guff--its a given:eek:

Then he doesn't know our business or doesn't know or understand the publics perception of us as an industry.

[Penfold42]

Actually the more I think about it, so do I. It is a long time and even at 20 mins away, I won't get home til around 02:30-03:00 :eek: :eek:

What i'm getting at Justin is - In the first place you mention £360 then £330.
If i was the customer i would be thinking....he's dropped £30 without any talking.......i'll see if i can get him to drop another £30.....i'll go fishing at £300.....do you see where i'm coming from......:)

Never sell yourself short even if it's 20 minutes down the road.......

My company hire me out to other companies for £75 per hour.....even if i have to travel 2 hours in a car......that's £150 for 'flat arseing it'...sat still....and they get away with it....

[JAMdisco]

Well, some very useful tips here, thank you all for taking the time to reply.
I will definately be using some of these for future reference when quoting.

It's always a hot topic when prices are discussed and I'm sure it always will be...

P.S. Still think 3k for pics is expensive, and as for what services he provides, I would find it hard to justify paying that. :p

[CRAZY K]

No, but people haggle over thing in retail and a lot of other services.




Then he doesn't know our business or doesn't know or understand the publics perception of us as an industry.


These are my personal views and strategy, they have worked well for me over the last few years:D

CRAZY K

[CRAZY K]

I can't stand it when people put "officer manager" etc when it is only them doing it.

But of course you may have a whole team.. I don't know!.:)

I know this ---

Using the quote system illustrated has secured some valuable work for myself and the Office Manager:D :D :D

If it helps Justin--great:D

CRAZY K

[Boogie Boy]

My company hire me out to other companies for £75 per hour.....even if i have to travel 2 hours in a car......that's £150 for 'flat arseing it'...sat still....and they get away with it....

Two wrongs don't make a right. By your own admission 'the company gets away with it'. That's one very good reason why this country is in such a state and we're perceived as being lazy and overpaid by the rest of Europe.

[rob1963]

Two wrongs don't make a right. By your own admission 'the company gets away with it'. That's one very good reason why this country is in such a state and we're perceived as being lazy and overpaid by the rest of Europe.

And I thought we worked some of the longest hours of any country in Europe.

[Penfold42]

We are trying today......


Two wrongs don't make a right.By your own admission 'the company gets away with it'.
When did i say it was wrong..:confused: ...I said they get away with the charge.....I was just stating the fact the company can and do charge for travel.

Making a point of you should charge for your service and travel time.......

[Solitaire Events Ltd]

And I thought we worked some of the longest hours of any country in Europe.

We do.

[Sam]

we're perceived as being lazy and overpaid by the rest of Europe.


And I thought we worked some of the longest hours of any country in Europe.


Both could be applied to Pilots :D

[rob1963]

And I thought we worked some of the longest hours of any country in Europe.


We do.

I was talking in general terms though.....

.....obviously I wasn't referring to MYSELF!

:o

[JAMdisco]

Well, I know it's taken a little while but got an email from the daughter today saying she wanted to book me :D

Booking pack will be going in the post first thing in the morning.

Must have said something right.