Did I Over Price Or Under Price?

[DJH 0]

right guys n gals, heres the story.

Had a phone call today, a woman in Lowestoft,

woman "hi i wondered if it was posible to let me know if you are available to do a disco for a wedding"

Me " let me have a look in my diary (pause) luckily enough the 8th of march is the only free saturday in march, where is it to be held? and what time would you like it from and till?"

woman, " its in lowestoft ,we have been told we can have the room till 1am and start at about 7.30 - 8.00pm, but people have said the extra hour seems to be the expensive part"

me " extra hour? i just price on what hours you would like to book us from and too, im not a taxi driver and dont put the prices up after midnight"

woman " oh ok that sounds quite good"

me " the worst case senario is if you go from 7.30 till 1am i`d charge you £200"

Woman " ok i have other people to ring and other prices to get"

me " ok but if you ring in a few weeks i cant gaurentee ill be free thankyou fo ringing me"

 

now did i under charge or over charge? its a 17 mile hike there and 17 back, and is a 5.5 hour gig, and why is she ringing me 7 weeks before her wedding,i thought the entertainment would be one of the early things you do, if she gets one cheaper good luck to her, but she dont know what she`s missing....lol.

 

will be interesting to see what norfolk dj and revalation have to say on this one,

 

Haydn

 

 

[analyst 0]

If it was only today you had the call I'd give it time before concluding it was a lost cause.

 

We, here, may have our perceptions about pricing and value, but the punter doesn't see it the same way. Lots don't snatch your hand off and have to go on a ring around to satisfy themselves they've "got the best deal"

 

She may be back, or she may not be :shrug:

[andyw 0]

simple answer you overcharged if you don't get the gig and would of done it for less,you undercharged if you get the gig and is doing it for less than you think you should be getting.i hate the debates on here about how much we should/shouldnt be charging,you know your market and price you should be getting for it.

[dh140770 0]

That's about what I would have quoted. I'm just getting back into the game after 10 years off, so i feel slightly under confident with my abilities just yet, in terms of remembering what to play when, and I need a bit more backup equipment for the show.

In 12 months it will be £250 for weddings where I need to travel and do the run around in terms of timing. £150 at least in my local regular spot which is very convenient.

 

Compare this to the 'absolute minimum' (apparently) that am paying to get my car back on the road with Toyota, £70 per hour plus parts, it's a bargain.

[DJH 0]

 

 

Toyota, £70 per hour plus parts, it's a bargain.

 

 

blimey you need to come see my mate, he`s alot cheaper and good...lol

[TonyB 0]

Just a thought but the whole conversation centered around price. I usually ask a few more questions such as what style of music is required which leads into a discussion about what they want and what I can offer music wise (work from playlist/no playlist/genres/era's etc), how many people, age group of guests - is it mixed family/friends, type of venue (hotel, golf club, village hall), is an early setup possible before the function or is the rig to be setup when the room is changed around after the breakfast is finished. Just show a bit of interest and sell the service you can provide rather than just discuss price.

 

Even if you were more expensive, they may of been happy to pay a bit extra for someone who shows a bit of interest in the function and goes that extra mile to make sure you can supply what they require.

 

Quote "but she dont know what she`s missing" - how will she know if you don't tell her?

Edited January 8, 2008 by TonyB

[eazy 0]

i would also say if ya get the gig then you priced it just about right any less nearly not worth the effort as for more you never know ??? but if you quote whatever your happy with then if you cant lose no point working for less that its worth to you and no point worrying about how much you mightg have been able to get !!!

[Paul Smith 0]

i hate the debates on here about how much we should/shouldnt be charging,

 

Simple answer don't take part in them then - not all topics suit all people and it's debates like this that help other members. I'm sure there are other topics more to your liking smile icon

 

Anyway back on topic - I agree with TonyB about moving the topic away from price initially by asking other questions. Also

 

me " the worst case senario is if you go from 7.30 till 1am i`d charge you £200"

 

I would've said The good news is that I'm available and I can provide a professional disco from 7.30 to 1.00am for just £XXX'

 

ie remove the negative comment (worst case scenario) and the word 'Charge'.

 

To answer your initial question - it's hard to know without more details of the event but I do know that there are DJs in the EA area who are far far more expensive (& very busy too) - you could lose the booking by not quoting enough, by quoting too much or by not selling your service as well as you could to the potential client.

 

 

 

[stoke53 0]

Well ive quoted for 5 different functions this week and lost every one purelly on price they wernt even interested at what kind of show they were getting just how much. I hope who ever they got for one of the bookings has fun because its a venue with a very sensative decibel meter in it and its a 13th birthday party fun to be had by them that night.

 

 

alan

[High Fidelity 0]

I used to have this debate with myself every time I gave a price, but not anymore.

 

For abut the past 18 months I have a pricing structure set up, which I know off by heart, and I have trained myself to the attitude of, "these are my prices and I won't turn out for less".

 

Bear in mind though, that I have a full time reasonably paid job, so I'm not dependant on being fully booked.

[Revelationroadshow 0]

Interested to see what Norfolk DJ and Revelation have to say then! What about poor Tony (Tonsk)? Although not for much longer.

 

We must chat - always looking for DJ's and hadn't realised you were so close!

 

Anyway, matter in hand. I always charge extra after midnight. I'm not a taxi, but I do like to get paid for what I do. midnight is the start of Sunday, if I do a day job on a Sunday I get paid extra for it, just because I'm a DJ I don't see wht that would be any different.

 

Secondly, I have a price and I stick to it, so if £200 was your price and that's what you charge then it was the right price. Anyone who tells you that by not getting the gig youa re too expensive is talking tosh. If you don't get the gig, then the client couldn't afford you, not the other way around.

 

As for me, personally I would have quoted at least £300 and by the sounds of it I would have been far to expensive. I know what I'm worth (well actually I am worth a lot more, but I still have to realise that last bit of worth). Always remember that you are selling YOU and if you are a great DJ, why shouldn't you be paid as one? Sure there will be people who can't afford you, but there will be lots who can - which is another reason you should get in touch with me! lol!

[spinner 0]

The key to this, in my opinion, is something you've mentioned in your post.

 

You were called only 7 weeks before the wedding.

 

This sounds like a hastily arranged affair and the "we can have the room until" remark is

an unusual one to make.

 

Serious wedding clients who are planning properly and have a sensible budget will be enquiring

6 months to a year in advance.

 

One other point, if I've understood this correctly, is she wasn't interested in you specifically but was simply ringing round for prices.

 

The only thing you've lost is someone who was looking for a cheap disco for what will probably be a cheap wedding with no great thought put into it, which is more than likely something you didn't want in the first place.

 

 

Edited January 8, 2008 by spinner

[Paul Smith 0]

The question that springs to my mind is 'Do you let potential clients dictate what you charge or do you have a belief that you are worth £XXX to their function'

 

If it's the former then market forces and your competition will make a big influence on your quote - if it's the latter you just have to convince them that you are the guy/girl for them so that money doesn't become such a big issue.

 

This forum has been going for almost 5 years now :Thumbup: and during this time we have had this debate so many times that Andy has had enough of it :scared:

 

In a way I can understand his frustration because some people don't believe in their abilities or their influence on how the evening turns out that they undersell themselves to the extent where they charge less than it would cost the clients to hire the equipment themselves and provide their own entertainment.

 

What I have learnt over these 5 years is that this is a 'safe bet'. Charge less than you are worth and that way no one can complain ... charge less than what it would cost them to hire the equipment themselves and hey where's the MBE.

 

Here's my challenge for 2008 - go to your local hire shop with a list of all the equipment you take to a function. Add on the music you take along plus your time (& that of a roadie if you use one) then see if you can conceivably re-produce a function for the same price that you are currently charging.

 

If you can :Thumbup: if you can't then either winge, make excuses or do something about it...

 

Ooh and I haven't even added that intangible of experience - let's say just £50 :shrug:

[Tonsk 0]

To be honest, I would've charged more - I would've charged 250-275..

 

Again though, I would've changed the conversation a little - firstly by asking how the plans are going.... Brides LOVE to talk about wedding plans and immediately launch into a whats good and whats bad etc...

 

Makes them more approachable when closing the deal...

[spinner 0]

Here's my challenge for 2008 - go to your local hire shop with a list of all the equipment you take to a function. Add on the music you take along plus your time (& that of a roadie if you use one) then see if you can conceivably re-produce a function for the same price that you are currently charging.

 

If you can :Thumbup: if you can't then either winge, make excuses or do something about it...

 

Ooh and I haven't even added that intangible of experience - let's say just £50 :shrug:

 

 

I've just had a quick look and a sound system for up to 120 people plus a twin CD player can be hired for £185.

 

That's without stands for the speakers and without a deck stand. 2 scanners plus 2 colour changers will add a further £100. So that's £285 but a deckstand is needed plus something to hang the lights from.

 

For argument's sake let's add £50 to hire a combined deckstand and goalpost. That's £335 without a decent music collection and something for the DJ's experience.

 

On that basis £400 is cheap but that means the value of a music collection and experience represents only around 16% of the total package price. And what about pre-function preparation, client meetings, travel, setting up and breaking down?

 

Taking that into account, £500 sounds very reasonable.

 

 

 

[Revelationroadshow 0]

To be honest, I would've charged more - I would've charged 250-275..

 

Again though, I would've changed the conversation a little - firstly by asking how the plans are going.... Brides LOVE to talk about wedding plans and immediately launch into a whats good and whats bad etc...

 

Makes them more approachable when closing the deal...

 

Or, get your wife (or partner) to answer the phone and sell your services.... instant increase in fee!

[Dukesy 0]

I've just had a quick look and a sound system for up to 120 people plus a twin CD player can be hired for £185.

 

That's without stands for the speakers and without a deck stand. 2 scanners plus 2 colour changers will add a further £100. So that's £285 but a deckstand is needed plus something to hang the lights from.

 

For argument's sake let's add £50 to hire a combined deckstand and goalpost. That's £335 without a decent music collection and something for the DJ's experience.

 

On that basis £400 is cheap but that means the value of a music collection and experience represents only around 16% of the total package price. And what about pre-function preparation, client meetings, travel, setting up and breaking down?

 

Taking that into account, £500 sounds very reasonable.

True...and a great breakdown example Steve.

 

Don't forget, we have to deduct for the other business running costs, set aside money for Tax, etc....no mark-up has been added either...so to add the latter factor to this detailed breakdown.. could be anything from at least 33%+. Still VFM.

 

 

 

 

[Revelationroadshow 0]

OK Challenge taken.

 

But lets be honest here, I'm Jo Blogs who isn't a DJ, so there's no point even suggesting I know what I'm doing. So I decide to hire my own gear locally (Suffolk).

 

300 watt PA package (amp / speakers / cables / stands) = £60

2 x Pioneer CDJ 800's & mixer = £75

 

Lets be honest, no point looking for a deck stand as Mr Blogs will have no idea and will just pinch a table from the village hall to put the CD decks on

 

2 x Datamoon = £30

Smoke Machine = £10

4 x LED cans = £40

2 x lighting stands = £30

 

Which makes a grand total of - £245

 

If they were bass heads and wanted more volume add £10 for a 500 watt set up or £25 for an 800 watt system. Lets say they do have just a little class, have watched the off X-factor show and fancy a bit of star cloth action, add £35.

 

So for the biggest system with star cloth - £305

 

There is no need even considering the music. Mr Blogs will I guess be quite happy to use his and a collection of borrowed CD's to play for the night, maybe some MP3 downloads and a NOW album bought for the occasion and use in the car afterwards.

 

based in Ipswich, so lets say it's a 20 mile round trip to collect and return - 30p a mile - £6

 

Grand total now - £311

[spinner 0]

OK Challenge taken...........................

 

 

 

......................Grand total now - £311

 

 

Which is slightly less (£24) than my example but still without a decent music collection and someone experienced to present it.

 

On that basis £400 with music and operator thrown in still looks cheap and anything less looks seriously underpriced.

 

 

[Revelationroadshow 0]

Which is slightly less (£24) than my example but still without a decent music collection and someone experienced to present it.

 

On that basis £400 with music and operator thrown in still looks cheap and anything less looks seriously underpriced.

 

But you see we're looking at this as DJ's, not Jo Blogs.

 

Your comments make absolute perfect sense to us as DJ's, but Jo and the man on the street say "look at that, I can hire the equipment for £300, my brother can play some CD's, why should I waste £400 on a company to do it for me".

 

As you and I both know, it's not about the equipment and that's the important part of our pitch to potential clients!

[eazy 0]

you can do all the maths you like but the long and short of it all is

its only worth what someone will pay for it !!!

if im selling my car and i think its worth £3000 but no one else does then its not worth £3000 !!!

[spinner 0]

you can do all the maths you like but the long and short of it all is

its only worth what someone will pay for it !!!

if im selling my car and i think its worth £3000 but no one else does then its not worth £3000 !!!

 

 

Quite right.

 

This is theoretical anyway since the majority of clients wouldn't hire the equipment themselves, although it does show that equipment hire companies' rates are more realistic than those charged by some mobile DJs.

 

If those DJs charging at a lower rate are satisified with that it's entirely up to them.

 

Perceived value is, of course, the key here. Some clients would think £250 too cheap and be reassured by a higher price - say £650 which could indicate a better quality service - whereas others would think the reverse.

 

 

 

 

[andyw 0]

The question that springs to my mind is 'Do you let potential clients dictate what you charge or do you have a belief that you are worth £XXX to their function'

 

If it's the former then market forces and your competition will make a big influence on your quote - if it's the latter you just have to convince them that you are the guy/girl for them so that money doesn't become such a big issue.

 

This forum has been going for almost 5 years now :Thumbup: and during this time we have had this debate so many times that Andy has had enough of it :scared:

 

 

In a way I can understand his frustration because some people don't believe in their abilities or their influence on how the evening turns out that they undersell themselves to the extent where they charge less than it would cost the clients to hire the equipment themselves and provide their own entertainment.

 

 

What I have learnt over these 5 years is that this is a 'safe bet'. Charge less than you are worth and that way no one can complain ... charge less than what it would cost them to hire the equipment themselves and hey where's the MBE.

 

 

i suppose hate the debate was too strong but dislike them because they all seem to go the same way,i understand some people charge more than others and get more than others(the way they sell themselves and present themselves and by aiming for that particular market) BUT in these debates not everyone understands ,that not everyone is able or willing to pay£500 for a disco.lets make your challenge a bit more balanced by saying after you have priced up the hire of the equipment phone around a few dj's in yp and see how many will do it for less than that.then you will have a real comparison.my conclusion is that the price you get depends on the market you are in.

one more question for all you guys who charge more,if the average disco around your area increased there price to the same as you are charging would you increase your prices againor say i am getting what i am worth.

 

 

[spinner 0]

not everyone is able or willing to pay£500 for a disco.

Surely that goes without saying - isn't it the same in all markets?

 

my conclusion is that the price you get depends on the market you are in.

Absolutely right

 

one more question for all you guys who charge more,if the average disco around your area increased there price to the same as you are charging would you increase your prices again.

 

Most definitely

 

 

[High Fidelity 0]

one more question for all you guys who charge more,if the average disco around your area increased there price to the same as you are charging would you increase your prices againor say i am getting what i am worth.

 

NO.

 

My price is the right price for my services, and I believe it to be a fair one.

 

I would be extremely happy if everyone in my area put their prices up to match mine.