Fees - are we just fooling ourselves

[welby]

I have been in business for just under a year now and take stock of people's comments on this, and other websites regarding pricing.

I know people harp on about the "credit crunch" but I feel that some people are just using that as an excuse to squeeze companies and suppliers as much as they can. Which to be honest I can't blame people for that.

But just lately, I have been getting calls for pricing on disco's etc and being told quite openly that a certain local dj is doing a disco for £120 for a full night and just recently I had a call and was told the same dj was offering a full wedding disco for £230 all in.

Now I don't know about you, but it's taken a while to get going but slowly slowly I have been increasing my bookings. But I just feel that reducing my pricing to compete is basically giving away my services for next to nothing.

You just have to work out the hourly rate for a £120 disco:

1. Pack the van 1hr
2. drive to gig 45mins-1hr
3. Unpack and setup 1-1.5 hours
6. entertain for 5 hours,
7. pack up rig 1-hr,
8. drive home, 45 mins-1hr
9. unpack van 45min

and then if your lucky you get in bed by 2am.

So, take out your petrol/insurance costs/PLI/PAT/Produb/equipment depreciation/Tax of say of £35, which leaves an hourly rate of £7.72 approximately.

Now it does not need rocket science to work out that you can't even get your car fixed for less than £40 per hour, a plumber wont even turn out for less than £25 per hour. So why is assummed that DJ's will come and entertain you for the price of £2 more than the minimum wage of £5.73?

Am I just fooling myself? I enjoy doing what I do and meet some great people, and some not so great, but please not at any cost!

I just feel this mad pricing is ruining it for others!

Rant over! :bang:

[ppentertainments]

I have been in business for just under a year now and take stock of people's comments on this, and other websites regarding pricing.

I know people harp on about the "credit crunch" but I feel that some people are just using that as an excuse to squeeze companies and suppliers as much as they can. Which to be honest I can't blame people for that.

But just lately, I have been getting calls for pricing on disco's etc and being told quite openly that a certain local dj is doing a disco for £120 for a full night and just recently I had a call and was told the same dj was offering a full wedding disco for £230 all in.

Now I don't know about you, but it's taken a while to get going but slowly slowly I have been increasing my bookings. But I just feel that reducing my pricing to compete is basically giving away my services for next to nothing.

You just have to work out the hourly rate for a £120 disco:

1. Pack the van 1hr
2. drive to gig 45mins-1hr
3. Unpack and setup 1-1.5 hours
6. entertain for 5 hours,
7. pack up rig 1-hr,
8. drive home, 45 mins-1hr
9. unpack van 45min

and then if your lucky you get in bed by 2am.

So, take out your petrol/insurance costs/PLI/PAT/Produb/equipment depreciation/Tax of say of £35, which leaves an hourly rate of £7.72 approximately.

Now it does not need rocket science to work out that you can't even get your car fixed for less than £40 per hour, a plumber wont even turn out for less than £25 per hour. So why is assummed that DJ's will come and entertain you for the price of £2 more than the minimum wage of £5.73?

Am I just fooling myself? I enjoy doing what I do and meet some great people, and some not so great, but please not at any cost!

I just feel this mad pricing is ruining it for others!

Rant over! :bang:

Not this again - have you just noticed ???
I will say the same as I always do. Don't worry about other peoples prices. If I was competing with £120 dj's I would be happy. However I normally get asked to beat £40 - £60 DJ's.

[wensleydale]

you also forgot the x hours prep before the gig.

as you calculated, the £60 gig is not sustainable- you just have to explain this to clients and explain to lose the odd gig.

at the other end of the scale there are people willing to pay more than the average rate for above average service and they are the people you need to focus on attracting and converting when they ring you up.

[BeerFunk]

Hours worked are irrelevant, clients are paying for the service only, they generally aren't interested in the prep work you had to do to provide it.

[DeckstarDeluxe]

Hours worked are irrelevant, clients are paying for the service only, they generally aren't interested in the prep work you had to do to provide it.

As many people run this as a buisness then even though it doesnt matter to the customer it still matters.

They do care however if your service isnt good enough due to lack of prep work such as equipment failure, no suitable music forgetting to pack the mixer.....

[BeerFunk]

As many people run this as a buisness then even though it doesnt matter to the customer it still matters.

They do care however if your service isnt good enough due to lack of prep work such as equipment failure, no suitable music forgetting to pack the mixer.....Right, but they still don't care about the background details to the service you're providing. You charge £XXX, they agree to the terms of your service, pay, and expect it delivered.

[Tony Scott]

I believe this issue has a lot to do with 'full time' verses 'part-time'.

If you have a day job that pays the bills you can afford to go out at the weekends a little cheaper if you choose as the money earned is in addition to your main income, this would explain why some DJ's provide a service cheaper than others.

I am passionate about what I do and put a lot of effort into the service I offer, I provide a professional level service to my clients for a reasonable fee that I am happy with. I do not have to worry about the financial side of things too much and I don't have to concern myself with getting lots of bookings...a gig once a week is enough to keep me happy.

I personaly wouldn't consider going full time, I really enjoy what I do and I'm not sure I'd get the same satisfaction out of it if I had to run it as a full time business? I apprieciate that this may frustrate some full time operators but we all do this for different reasons. :)

[DeckstarDeluxe]

I believe this issue has a lot to do with 'full time' verses 'part-time'.

If you have a day job that pays the bills you can afford to go out at the weekends a little cheaper if you choose as the money earned is in addition to your main income, this would explain why some DJ's provide a service cheaper than others.

I am passionate about what I do and put a lot of effort into the service I offer, I provide a professional level service to my clients for a reasonable fee that I am happy with. I do not have to worry about the financial side of things too much and I don't have to concern myself with getting lots of bookings...a gig once a week is enough to keep me happy.

I personaly wouldn't consider going full time, I really enjoy what I do and I'm not sure I'd get the same satisfaction out of it if I had to run it as a full time business? I apprieciate that this may frustrate some full time operators but we all do this for different reasons. :)

oh no not this again ;) i do argee about the enjoyment factor tho

[rob1963]

I have been in business for just under a year now and take stock of people's comments on this, and other websites regarding pricing.

I know people harp on about the "credit crunch" but I feel that some people are just using that as an excuse to squeeze companies and suppliers as much as they can. Which to be honest I can't blame people for that.

But just lately, I have been getting calls for pricing on disco's etc and being told quite openly that a certain local dj is doing a disco for £120 for a full night and just recently I had a call and was told the same dj was offering a full wedding disco for £230 all in.

Now I don't know about you, but it's taken a while to get going but slowly slowly I have been increasing my bookings. But I just feel that reducing my pricing to compete is basically giving away my services for next to nothing.

You just have to work out the hourly rate for a £120 disco:

1. Pack the van 1hr
2. drive to gig 45mins-1hr
3. Unpack and setup 1-1.5 hours
6. entertain for 5 hours,
7. pack up rig 1-hr,
8. drive home, 45 mins-1hr
9. unpack van 45min

and then if your lucky you get in bed by 2am.

So, take out your petrol/insurance costs/PLI/PAT/Produb/equipment depreciation/Tax of say of £35, which leaves an hourly rate of £7.72 approximately.

Now it does not need rocket science to work out that you can't even get your car fixed for less than £40 per hour, a plumber wont even turn out for less than £25 per hour. So why is assummed that DJ's will come and entertain you for the price of £2 more than the minimum wage of £5.73?

Am I just fooling myself? I enjoy doing what I do and meet some great people, and some not so great, but please not at any cost!

I just feel this mad pricing is ruining it for others!

Rant over! :bang:

My expenses are around £100 per gig & I spend on average 8 hours on each gig.

Therefore, if I was charging £120, I'd be on a net pay of £2.50 an hour.

[Tony Scott]

My expenses are around £100 per gig & I spend on average 8 hours on each gig.

Therefore, if I was charging £120, I'd be on a net pay of £2.50 an hour.

That much Rob? I think you're setting your sights a little high mate! :D

[rob1963]

That much Rob? I think you're setting your sights a little high mate! :D

:rofl:

[Solitaire Events Ltd]

Hours worked are irrelevant

They are very relevant if you are working them.

[rob1963]

Hours worked are irrelevant

What a load of rubbish.

If I have a gig which takes up more of my time, I'll charge more for it...and I'm speaking as someone with set prices (subject to a few basic criteria).

I suspect the vast majority of people with no other income are the same, although I can understand why some part time or hobby DJs might think differently...as they don't have to rely on their disco income to pay the bills & put food on the table.

[Steve the DJ]

If people want to prostitute themselves for work then let them get on with it. I just ignore them.

I have my figures, some business sense and my integrity and others can go out for £8.47 on a Saturday night for all I care, but I won't be, no matter how "desperate" I may become.

As of Friday (whether I like it or not) I am a full time DJ.

My diary still has a number of gaps in it and in April I have just one gig.

Am I running around offering to do discos for silly money just to put food on the table?

Nope. Not gonna happen. It's a slippery slope I am not prepared to even stand near the top of.

I would rather clean offices for minimum wage than devalue what I do as a DJ, it's a shame others can't get that into their heads as it would ensure many more of us could command a fair and liveable wage form DJing.

[BeerFunk]

They are very relevant if you are working them.Yeah but then you would charge an appropriate amount for that, the number of hours are irrelevant from an external perspective, that's what I should have said :)

[welby]

Hi all,

Again? well I guess it's a thorn in the side for some -seems like I should stand my ground.

It would seem that some dj's (hopefully not on here) are happy to take the "beer money" as payment.

I have just started to give the stock answer of "great price - hope they turn up" with a view of casting doubt on whether they have made the right choice in the hope they book me.

Just on a side-note the Mrs volunteered to be my roadie for a gig, and she was completly amazed into how much effort is required for a successful night. It certainly changed her mind. She thought it was all women and fun! :eek: phew!

[rob1963]

It would seem that some dj's (hopefully not on here) are happy to take the "beer money" as payment.


That's one of the biggest problems with this industry.

[Tony Scott]

My diary still has a number of gaps in it and in April I have just one gig.

Am I running around offering to do discos for silly money just to put food on the table?

Nope. Not gonna happen. It's a slippery slope I am not prepared to even stand near the top of.



Well said, I agree! :approve:

I'm not full time but have never done deals just to get the work. I've also never knowingly undercut another DJ either. My prices are reasonable and are fixed, I won't discount them. :)

[Creature]

Just on a side-note the Mrs volunteered to be my roadie for a gig, and she was completly amazed into how much effort is required for a successful night. It certainly changed her mind. She thought it was all women and fun! phew!


my mrs now comes out with me more and more and she says teaching teenagers in her skool is easier !!

[SC Events]

I have a 'set' price for different discos, but I am still trying to find out what the going rate is for a Disco in the areas I cover, so I can be equally priced and not seem like a £100 Harry.

Just out of interest, what is a standard price for a Wedding Disco in the Birmingham Area??? or how much roughly do you charge - I think I am under-charging by a fair bit!!!

Also, I would never knowingly under-cut another DJ.

Scott.

[Solitaire Events Ltd]

<groan>

[Grahame Case]

<groan>

poor Darren, here mate have a cuppa. :beer1:

[geoffrey]

The credit crunch then recession is very real indeed but as some say, others try to take advantage of the situation.
The whole economy revolves around a supply and demand chain. If your services are in demand you can charge accordingly.

If there is a large supply and little demand then you have to be a little more competitive to get the work.( hence the low pricing)

The DJ’s who will do better than others are the ones who over the years have given their customers a reason to re-book at a near usual rates.

Cash sales last year out numbered credit cards and it is fact that most working class people are trying to pay off credit card/store card debts which is one reason for the short term cash payments trend. So offering cash sales as an option may be wise this year depending which market you are in.

If you really want better payment for your services then change your clientele and possibly your image and fight your corner.

I firmly believe we have bottomed out of this recession and hopefully towards the end of the year we will start to see a turn for the better.
I have a friend who has invested this year over 40 million in the housing market ready for profits in 2011 and he has been backed by some very well known companies (Not Banks) and they would not invest unless they knew the market was going to turn.

[rob1963]

The credit crunch then recession is very real indeed.....The DJ’s who will do better than others are the ones who over the years have given their customers a reason to re-book at a near usual rates.


I'm not sure I agree with that.

Nearly all of my own customers are one-offs rather than people re-booking at near usual rates.

Despite this, I'm 99% certain that 2009 will be my second best year EVER.

[Tony Scott]

Nearly all of my own customers are one-offs.....despite this, I'm 99% certain that 2009 will be my second best year EVER.

me too...go figure? :)

[DeckstarDeluxe]

I'm not sure I agree with that.

Nearly all of my own customers are one-offs rather than people re-booking at near usual rates.

Despite this, I'm 99% certain that 2009 will be my second best year EVER.

How many people book you because they have seen or heard about you at someone elses WEDDING which i belive is 95% of your work?