Have you properly evaluated your costs?

[kilmeedyman]

Following on from another thread with a familiar theme, I wonder if you have worked out what it costs per gig for you to DJ?

I don't mean just petrol etc. for the day, I mean a proper costing which adds up the annual expenditure and divides it by the average number of gigs you do in a year.

Costs should include:

Operating Costs
Depreciation of operating equipment (speakers, players etc) at 25% per annum
Disposables (eg. bulbs, leads, fuses)
Giveaways (glowsticks etc.)
Roadies
Vehicle costs including servicing, tyres, tax and insurance etc.
Music Purchases
Clothing Purchases and cleaning
Equipment repairs
PA Testing
PLI
Other insurances (eg. equipment)
Licences
Fuel costs
Parking costs

Office costs
Computer
Paper and Ink
Postage
Telephone & Fax
Heat, light & power for office/home (an appropriate proportion)
Advertising
Internet costs (hosting, ISP, email etc.)
Subscriptions

I know what it costs me per gig and set my charges accordingly.

Be realistic about the costs and how many gigs you would do in a year.
Do the calculation annual costs divided by gigs and post our result here nad in the poll.

[ppentertainments]

Don't think I could accurately work this out. Would just be a total guess if I am honest

[rob1963]

I didn't know this figure before, but it was only a case of looking at my business expenses & capital allowances on last year's tax return and the total number of discos I did.

For me, the total expenses per gig come out at around £125, which I must admit is a fair bit higher than I'd have thought.

Good thread!

[ppentertainments]

Last years figures worked out a £108 for everything - not just discos.
Again higher than imagined

[soundtracker]

So therefore a cheap booking at £240 doesn't look so attractive does it?

[Steve the DJ]

Great thread Phil, very timely.

:approve:

[ppentertainments]

Whoever put over £226 must have bought some great equipment or needs another accountant I think :D :D

[rob1963]

I didn't know this figure before, but it was only a case of looking at my business expenses & capital allowances on last year's tax return and the total number of discos I did.

For me, the total expenses per gig come out at around £125, which I must admit is a fair bit higher than I'd have thought.



I've just realized something.

The figure for me will be lower than £125, as the business expenses I used to work out the figure also included my quiz expenses, a large part of which are travelling expenses...so my expenses figure per disco is probably more like £100. (Still higher than I'd have expected!)

[theoloyla]

Mine was a little high but some of my costs are also charged to line dancing as I dont divide costs; so I'm in the same boat as Rob.

[Danno13]

In answer to the origanal question, YES! most definitley, I use Sage to do my accounts so am always aware of where my profit is going!

I recently worked it out to £280 a week, this doesn't include labour costs when I provide other DJs, and allows for a couple of weeks holiday a year.

That's based on the first 6 months of this financial year, so it may drop over the rest of the year considering things like van insurance, PLI, PAT, ProDub, Advertising renewals have all been paid already.

[One Vision]

Following on from another thread with a familiar theme, I wonder if you have worked out what it costs per gig for you to DJ?

I don't mean just petrol etc. for the day, I mean a proper costing which adds up the annual expenditure and divides it by the average number of gigs you do in a year.

Costs should include:

Operating Costs
Depreciation of operating equipment (speakers, players etc) at 25% per annum
Disposables (eg. bulbs, leads, fuses)
Giveaways (glowsticks etc.)
Roadies
Vehicle costs including servicing, tyres, tax and insurance etc.
Music Purchases
Clothing Purchases and cleaning
Equipment repairs
PA Testing
PLI
Other insurances (eg. equipment)
Licences
Fuel costs
Parking costs

Office costs
Computer
Paper and Ink
Postage
Telephone & Fax
Heat, light & power for office/home (an appropriate proportion)
Advertising
Internet costs (hosting, ISP, email etc.)
Subscriptions

I know what it costs me per gig and set my charges accordingly.

Be realistic about the costs and how many gigs you would do in a year.
Do the calculation annual costs divided by gigs and post our result here nad in the poll.

So out of this list, how much could you actualy claim back?

[Solitaire Events Ltd]

So out of this list, how much could you actualy claim back?

A percentage of all of it, that's the point.

[mikeee]

Not too much of this will reduce (except fuel expenses) if there is a downturn in the number of bookings next year.

This means, paradoxically, that in lean times as we're supposed to be heading for, the sales price per booking should really go up.

[kilmeedyman]

Well I'm in the higher 1/3 of the costs at £166 per gig, but that is probably because I don't do so many gigs as some (around 35).... :-(

Mikeee is spot on re. the more gigs you do in a year, the lower the cost per gig - that's maths for you! Equally if the number of gigs reduces next year because of the credit crunch, the cost per gig increases..

It was a really useful exercise to do the calculation and a bit of an eye-opener to be honest. Had all the figures there in my accounts like the rest of you, just didn't do the analysis.

At least I know now if I need £5k income per year before tax (£4k after tax) from discos, which is very modest indeed, I need to charge an average of £309 per gig or find 15 more gigs per year at an average of £270 each.

It does make you wonder how some people price themselves - and how some agents think they can pay you less (ie. so you end up with a loss)

[theoloyla]

Like I said in another thread you need to have a full business plan with targets for sales (in volume and price) and expenses plus a cashflow projection and analysis. Then you can really run your business ain an informed way.

[kilmeedyman]

Exactly Theo

[mikeee]

Like the man said

[StarZSoundS]

Well I'm in the higher 1/3 of the costs at £166 per gig, but that is probably because I don't do so many gigs as some (around 35).... :-(

Mikeee is spot on re. the more gigs you do in a year, the lower the cost per gig - that's maths for you! Equally if the number of gigs reduces next year because of the credit crunch, the cost per gig increases..

It was a really useful exercise to do the calculation and a bit of an eye-opener to be honest. Had all the figures there in my accounts like the rest of you, just didn't do the analysis.

At least I know now if I need £5k income per year before tax (£4k after tax) from discos, which is very modest indeed, I need to charge an average of £309 per gig or find 15 more gigs per year at an average of £270 each.


It does make you wonder how some people price themselves - and how some agents think they can pay you less (ie. so you end up with a loss)

Whilst he has approaced the subject very proffesionally i'm not sure he has the balance right.

I would rather be out doing my 150 gigs a year than sat at home analyzing my 35....thats not slagging him off.....he's entitled to run his business his own way.....


Whilst i'm doing my cheapish Sunday night I'm also advertising better than any website...wedding fayre....mail shot....:DJ:

"Who is that boy.....He can entertain!!"

[Solitaire Events Ltd]

Whilst i'm doing my cheapish Sunday night I'm also advertising better than any website...wedding fayre....mail shot....:DJ:

"Who is that boy.....He can entertain!!"

Have you taken lots of work from the aforementioned £80 Sunday night booking then?

[StarZSoundS]

Friends of Friends of Friends!!

In it to win it.

You'll notice no website.....everything comes from repeat bookings!!Never spent a penny on advertising yet!!

[Solitaire Events Ltd]

Friends of Friends of Friends!!

In it to win it.

You'll notice no website.....everything comes from repeat bookings!!Never spent a penny on advertising yet!!

I didn't have a website until 4 years ago.

I doubled my turnover in 2 years.

But if you are getting the kind if high paid work you require then fair enough. ;)

Time for this I think. :flog: