Are My Prices Competitive?

[Paul Smith 0]

My problem is people such as yourself making comment like that, you just dont get it do you?

 

OK you are charging £225 and someone else is charging £150 for basically the same service. This gives you 2 options - lower your price or improve your service so that you are worth the extra £75.

[andyw 0]

My problem is people such as yourself making comment like that, you just dont get it do you?

 

I give up........Im not even going to comment on that if you honestly feel £150 is a fair price for providing the services that I outlined in the original post then I cant change your mind can I.

So this was and AGENCY phoning you and offering you £150 for that?

Thats fine but remember that the customer would probably be paying around the £200 mark, which proves that their are customers that are willing to pay more money.

 

no i don't get it, sorry it's not what i think is a fair price but what the client is willing to pay for your services.if your competion is charging £150 for exactly the same service as you,then you need to either up your game or lower your prices.

[Dukesy 0]

Based on the following, can anyone provide a different example of what I'm trying to say here

 

DJ service A needs an income of £12,000 just to pay personal bills

He works 48 weeks of the year, based on one gig a week. Therefore, part of his fee will reflect £250.

Add 15% to cover the NI and TAX (taken into account personal allowance and the 10% Tax rate) brings us forward to £287.50.

Now, his minimum expenses per gig is £150 which covers the electricity used, car expenses, disco equipment, bank charges, purchasing music, stationery, telephone, postage, advertising, clothing, insurance, PLI, PAT, disco sundries, etc, etc, etc

His fee now reflects £437.50 MINIMUM

 

 

DJ service B needs an income of £5,000 just to pay personal bills.

He works 48 weeks of the year, based on one gig a week. Therefore, part of his fee will reflect £104.16

Add 30% to cover the NI and TAX (personal allowance and 10% Tax rate already allocated to main job) brings us forward to £135.40

Although part of his expenses per gig is £2.70 which covers the PLI, the rest of his business expenses is subsidised by his day job.

He can round off his fee to £140.00

 

Both are experienced DJs and provide a similar service in the same area.

DJ B is happy with what he is doing.

For DJ A to survive, he would need to add value to his service to that of DJ B.

The view of the client will expect value for money from either service engaged.

[andyw 0]

quote dukesy

For DJ A to survive, he would need to add value to his service to that of DJ B.

 

thats what i have been trying to say,don't say i cant compete so i will drop my prices,improve your service and people will pay extra for the extra service,but they wont pay extra for the same

 

[Andy Westcott 0]

And can we please stop these derogatory remarks about sub-£150 DJs being just hobbyists?

 

We make up the majority by a pretty large margin. As AndyW so rightly said, either bring your prices down or do a better job - that's the way the business works, I'm afraid.

 

I chose the lower end of the market because I have no personality, old scruffy equipment and gaps in my record collection - I charge accordingly. If I had ultra-modern gear, did cabaret as part of my act and had 100,000 tracks to call on I would pitch myself at a different market.

 

The 18th party you quoted for was pretty much at the bottom as regards a DJs ability, as I doubt anything special would have been required:

 

Did they ask for a mix-DJ?

Did they ask for abnormally long hours?

Did you have to hire in extra equipment because you were expected to play for 1,000 people?

 

Probably not; Therefore base rates apply.

[Danno13 0]

OK you are charging £225 and someone else is charging £150 for basically the same service. This gives you 2 options - lower your price or improve your service so that you are worth the extra £75.

 

They're not the only choices, you can convince the customer that your worth that extra £75, after all provided you do a good job the customer will get their moneys worth and they may never know that they could have got the same for cheaper.

 

Most people will only book a DJ maybe once or twice in their lives, so if you get the booking and they're happy with the service, they won't need or want to try out the cheaper DJ next time.

 

Or, you can tarket the type of customer who would think nothing of paying £225 and consider that a good deal... and there are plenty of these about, despite the following kind of opinions...

 

If you quoted 225 for that where i am people would laugh at you - end of story.

 

I've never been laughed at...

Edited February 10, 2008 by Danno13

[Mattaious 0]

As ive already said, Id prefer to take the lower end of the scale, And in all fairness i would of charged £150-£160 anyways.

 

You need to seriously look at your area and also your charges, If you feel its that bad.

 

If other DJ;s offering the same service can quote and secure bookings for £150 then trying tocharge £225 for the same service is not gonna work im afraid.

 

 

Not at £150 are part timers or "hobbiest's" as you put it so rudely.

 

I know lots and lots of DJ's on this forum and throughout the UK who charge that amount and sometimes less, And they offer a fantastic service as good as anyone else, They price themseleves according to the area and clientel (sp)

 

I think the best thing you can do is sit down and reasses your approach to your business and possibly look at your pricing, Obviously this is something that concerns you greatly.

 

 

 

[Danno13 0]

Another point I missed...

 

How can the service possibly be the same? The DJs are different people and will do things differently.

 

DJ X might charge £150 and DJ Y may charge £300, but you can't call them "the same" because they are different people.

 

And its all subjective anyway, one client might prefer the way DJ X does things and carry on booking them, wheras another might prefer DJ Y.

 

Stick to your guns Nick, as I keep saying there are as many people who wouldn't book a DJ for £150 because they think its too cheap, as there are people who won't book the 200-300 DJ because they beleive them to be too expensive.

Edited February 10, 2008 by Danno13

[centrestagediscos 0]

sorry nrg but its not the dj's who are charging £150 problem that your full time and need to earn x amount per year to meet your commitments, every dj on here has different expenses some of us have families and mortgages, some might wish to run a brand new van every year im happy to go and order acme lights while another dj might prefer to pay out more for martin ect the list is endless but the only person responsible for your pricing is yourself, like paul said maybe you need to go through your business plan to see if there are areas you can cut costs ie unproductive advertising or maybe lower your car/van running costs ect also you may spot areas where you can increase your income midweek gameshow type event in a pub or increase your radius if there is a higher disposable income area within a reasoable travelling distance.

[NRG Roadshow 0]

Not at £150 are part timers or "hobbiest's" as you put it so rudely.

 

Thats not me being rude, thats me speaking the truth......

Fact I do Djing for a living, if I wasnt doing it for a living then it would be my hobby.....

 

The whole point is, that everyone would be willing to pay £225 for the service if everyone charged that they would have no choice but to pay it.........the problem is DJs charging much less than they are worth dragging the prices down into the gutter because they are doing the job for a hobby and not for a living.

 

So why is it that the DJ world is plagued by part timers.......electricians, plumbers etc dont have to put up with part timers charging less for a service simply because they can afford too......you dont tend to find many electricians or plumbers that are doing the job for fun.

 

Im not saying I should reduce my prices to compete (but I may be forced too), quite the oposite.....Im saying that if your giving the same level of service as me then you should be charging as much as me.........because your worth it and because the customer will pay it.......well thats provided their aint a doubledecks dave down the road who will do it for a couple of quid......

 

[Spear 0]

 

So this was and AGENCY phoning you and offering you £150 for that?

Thats fine but remember that the customer would probably be paying around the £200 mark, which proves that their are customers that are willing to pay more money.

 

Not sure how it works up there but down here you collect the fees from the client then pay the agency their commission, so NO the client doesn't pay more.

A £150 gig works out to the Dj at about £127.50 income after commission, yet a lot of Dj's have to accept this if they want the work. ;thumbdown:

[Dukesy 0]

Im not saying I should reduce my prices to compete (but I may be forced too), quite the oposite.....Im saying that if your giving the same level of service as me then you should be charging as much as me.........because your worth it and because the customer will pay it.......well thats provided their aint a doubledecks dave down the road who will do it for a couple of quid......

 

So effectively what you are saying is that your level of service is a 'standard' - your benchmark of service?

And that all those that are offering the same standard / meeting your benchmark of service should charge around the same?

 

 

 

 

[NRG Roadshow 0]

In that case then it works different to agencys that I have worked for....

 

They charge the customer say £200.....the agency then pays the DJ £150-£175.....

And the agencys your way spear are only paying that amount because they know they can get away with it because theirs lots of DJs willing to go out for that fee.

[centrestagediscos 0]

the corner shop cant force the supermarket to sell at the prices they charge so why because your overheads are different to a part time dj should they have to charge the same as you, if every dj in the country did agree to charge £225 in the case study here, not everybody would be willing or able to pay it so you may not get the booking anyway, your statement that plumbers and electricains dont suffer from part timers is also wide of the mark as im sure a couple of them who post on here would verify as in my day job for my local city council i know for a fact that a lot of them do private jobs in the evening or at weekends and are able to provide as good a quality job as the fulltime own business plumber/electrician but with lower overheads as there main expenses are provided for by there day job so they can charge cheaper rates.

[Wayno 0]

Interesting Thread of a bit of a Taboo Subject.

 

I dont care if a DJ is Full time or Part time, a lot of joe public has one price in mind for a disco and that average hasnt changed in Ten years - whose fault is that?

 

Dont forget the original quote was for a disco and karaoke, so the karaoke songs are an added expense that no one has mentioned.

 

I know how much it costs me to go out each night and even with 2 x £150 gigs a week that would only just cover my expences.

 

IMHO i think the industry as a whole should move forwards as one to get a better deal for everyone full and part time alike by changing the clients perception of a "Mobile Disco" and the stigma associated but untill that time i will continue to charge what im worth and ignore what the so called "competition" charge.

 

Also the line about having to provide a bigger rig to charge more, thats a nonsense!.

 

 

 

P.S - forgot to mention advertising costs

Edited February 10, 2008 by Wayno

[Mattaious 0]

quote name='NRG Roadshow' date='Feb 10 2008, 08:32 PM' post='201582'

 

 

The whole point is, that everyone would be willing to pay £225 for the service if everyone charged that they would have no choice but to pay it.........the problem is DJs charging much less than they are worth dragging the prices down into the gutter because they are doing the job for a hobby and not for a living.

 

Why should everyone charge the same? At the end of the day its business, There may be some DJ's who charge less than you, but at the end of the day, one thing to think about - there getting the bookings, and if at the end of the year he would probably have a larger turn over.

Theres two ways to run a business, - For example -

1) Charge £150 and have 20 bookings a month

2) Charge £300 and have 3 bookings a month

 

Same clientelle (sp)

Both have PAT/PLI and First aid certificate!

 

 

So why is it that the DJ world is plagued by part timers.......electricians, plumbers etc dont have to put up with part timers charging less for a service simply because they can afford too......you dont tend to find many electricians or plumbers that are doing the job for fun.

 

You need to be very careful on the way you word your thoughts.

A DJ may be part time. and may only need to be part time but offers a equally good service if not better than a "full time" DJ

 

ALL TRADES have "part time" workers.

 

AGAIN its called BUSINESS

 

Im not saying I should reduce my prices to compete (but I may be forced too), quite the oposite.....Im saying that if your giving the same level of service as me then you should be charging as much as me.........because your worth it and because the customer will pay it.......well thats provided their aint a doubledecks dave down the road who will do it for a couple of quid......

 

Again refer to point 1

Edited February 10, 2008 by mattaious

[McCardle 1]

So why is it that the DJ world is plagued by part timers.......electricians, plumbers etc dont have to put up with part timers

 

So you've answered your own question, why not become an Electrician or a Plumber?. Unfortunately the grass is not always greener!. Take a look at their own forums, its full of people whinging about being undercut, sometimes by their own trade but also usually by kitchen fitters, many of whom all undertake electrical work themselves even in some cases where they are unqualified to do so. Add to that the expense of the intial electrical training and qualifications, as well as the ongoing additional legislation update training which they have to have, and boy, have we got it good!. Besides, ask the general public whether they see Deejays as qualified tradespeople........warning disclaimer:- you may not like the answer.

 

Anyway, before you think that we are the only industry to have customers dictating prices, or that we are the only industry to underprice each other, or consider that other trades are any different / better / then please read this thread.

 

http://www.theiet.org/Forums/forum/message...;threadid=16746

 

They even have their own electricianesque version of this thread

 

http://www.theiet.org/forums/forum/message...;threadid=18605

 

As i said before, why should we be immune to the same problems which plague other industries, what makes us so special??????????.

Edited February 10, 2008 by McCardle

[yorkiemark 0]

In York we have lots of mobile discos & the average charge for a party is between £120 & £160.

 

I tried charging £180 when I started but got no bookings.

 

My personnel experience is it don't matter how good your gear is or even how good your DJ skills are if the price ain't right Joe Public don't want to know.

 

there are one or two that I would call in the higher end of the scale of fees get get a booking on the strength that the clients think because the Disco charges more it's going to be better than the rest which does not always follow does it?

 

I also think calling Discos that charge less as hobbyists is a bit out of order as I would imagine we are the majority out there & run the Discos as a secondary income but not as a hobby that's probably more fitting to the guys who do them for £50 & bring all their crap equipment & dodgy downloaded music.

[NRG Roadshow 0]

You need to be very careful on the way you word your thoughts.

 

Do I? Whys that then?

Lots of things people have said in response to this thread have got right up my nose.......

But does that matter?

No, course it dosnt matter this is a forum, where we can all express our oppinions, and because its a forum we are never all going to agree with each other.

 

One thing thats shocked me is the ammount of people that agree with me........very few it seems.

 

All Im saying to the part-timers is charge a proper rate, I bet most of you actually subsidise your DJ business with top ups from your regualr incomes (I know I used to when I was doing it for a hobby)......thats how come you can afford to go out for £150.......

 

So what choice am I left with.......go back to charging what I did before.....get more gigs and earn more money.....

 

Simple choice, which would you rather do......

 

20 Gigs earning £2000 or 30 gigs earning £2000.......

Those part timers would probably say 30 gigs for £2000 coz they do it for love not money

Edited February 10, 2008 by NRG Roadshow

[McCardle 1]

20 Gigs earning £2000 or 30 gigs earning £2000.......

 

I'd rather do 10 gigs for £2000 which is currently roughly what i'm getting before expenses., this may be less than some here, it may be slightly more than others, but i'll continue with what works for me. My monthly income is still better than what i would get for 40 hours doing a 9-5 on the factory floor in this area and the job is whole lot more enjoyable, plus i work less hours for a similar income. True i'll never be famous, nor rich and i wont be able to retire early or afford luxury holidays, but that just puts me in the same realm as a lot of other people whether they are self employed or on the payroll, the bonus is that i'm happy in my work and I enjoy my job.

[Mattaious 0]

All Im saying to the part-timers is charge a proper rate

 

What? A rate thats inline or more expensive than yours?

 

So you wouldnt loose out?

 

I bet most of you actually subsidise your DJ business with top ups from your regualr incomes (I know I used to when I was doing it for a hobby)......thats how come you can afford to go out for £150.......

 

Just because a DJ doesnt DJ for a full time job does not make them a Hobby DJ!

 

The reason many DJ's charge for example £150 is because they inturn receive more bookings.

 

 

Take for example a purchase of a TV

 

Go into currys and see it for £149.00

 

Down the road is "Tony's Telly's" he's selling the same one for £99.00

 

Which one would you buy?

 

 

Curries because there a bigger company and work full time

 

or tony? even though he doesnt open on wednesday's saturday's and sunday's? and only has 3 lights on the shop?

 

 

 

 

Lots of things people have said in response to this thread have got right up my nose.......

But does that matter?

No, course it dosnt matter this is a forum, where we can all express our oppinions, and because its a forum we are never all going to agree with each other.

 

You opened this thread and posed a question to other members for there opinion on your current "problem"

Yes, not everyone will have the same views, But when you ask any question, then you need to be prepared and be willing to accept such advice, instead of being on the defensive to a response

 

 

 

One thing thats shocked me is the ammount of people that agree with me........very few it seems.

It would seem that with the majority of people saying the same thing, then perhaps you could follow the advice from others and act upon your pricing structure

 

 

 

 

 

 

[Dukesy 0]

Something else which may have already been mentioned..... is that technically, those that do DJ'ing or discos in addition to a full time occupation are effectively paying more to the inland revenue as well as two lots of NI. tongue out icon

 

A question was asked and it had a response. Don't judge others or individuals by their opinions, but "what his opinions have made of him". The recipe for perpetual ignorance is be satisfied with your opinions and content with your knowledge, and nothing is worse than active ignorance.

 

I would suggest that you reflect on the comments so far because if you are hasty in your decision, you limit your choices only to what seems possible or reasonable, you disconnect yourself from what you truly want, and all that is left is a compromise.

 

There's a saying - A weak man has doubts before a decision, a strong man has them afterwards.

 

 

 

[Andy Westcott 0]

Quote Wayno:

"and even with 2 x £150 gigs a week that would only just cover my expences."

 

That amounts to over £15,000 a year, not allowing for extra work over the christmas period. That's a lot of expenses.

 

Maybe for those interested you'd like to list those expenses, because I, for one, can't see it unless you are being unbelievably loose with your cash.

 

My main expenses to date (without looking at detail) amount to:

PLI approx. £200

New equipment. £700

Music £350

Office materials £120

Odds & ends £100

 

There's mileage allowance to add to that, and we haven't quite reached April, but even then it's a long way off 15 grand...

 

I don't DJ as a hobby, I DJ to supplement the income from my day job, as do most other DJs.

My accounts indicate I'm doing OK thankyou, and I am not supplementing the disco with my day job earnings, so I'd appreciate it if those of you who are suggesting otherwise retract your statements.

 

[Danno13 0]

That does seem quite high, mine are just over £8k, with 2 months left of course.. but that still equates to £80 a gig if you get two in a week.

 

So if i charged £150 i'd be left with £140 per week before tax! Its also where the worth of your service comes in, for each gig I spend at least 10 hours by the time I've travelled, setup etc. and of course the admin hours. So 150 - 80 = £70 = £7 p/hour, I know i'm worth more than that!

 

Quick cost breakdown lifted straight from Sage.

 

Music Purchases - £757

Cables/Hardware - £906

Sales promotion (advertising, promotional materials etc.) - £600

Misc Expenses - £40

Motor expenses - £3000

Travelling & Entertainment - £41

Printing & Stationary (inc. Telephone) - £530

Professional Fees (PAT) - £132.19 (plus equipment insurance and PLI due in March)

Equipment Maintenance - £150

Bank charges and interest - £15

General Expenses - £65

Depreciation - £2000-3000

 

Its not a cheap business to run.

Edited February 10, 2008 by Danno13

[andyw 0]

Thats not me being rude, thats me speaking the truth......

Fact I do Djing for a living, if I wasnt doing it for a living then it would be my hobby.....

 

The whole point is, that everyone would be willing to pay £225 for the service if everyone charged that they would have no choice but to pay it.........the problem is DJs charging much less than they are worth dragging the prices down into the gutter because they are doing the job for a hobby and not for a living.

 

So why is it that the DJ world is plagued by part timers.......electricians, plumbers etc dont have to put up with part timers charging less for a service simply because they can afford too......you dont tend to find many electricians or plumbers that are doing the job for fun.

 

Im not saying I should reduce my prices to compete (but I may be forced too), quite the oposite.....Im saying that if your giving the same level of service as me then you should be charging as much as me.........because your worth it and because the customer will pay it.......well thats provided their aint a doubledecks dave down the road who will do it for a couple of quid......

if you cant offer abetter service than a hobbyist you shouldn't charge more

 

Do I? Whys that then?

Lots of things people have said in response to this thread have got right up my nose.......

But does that matter?

No, course it dosnt matter this is a forum, where we can all express our oppinions, and because its a forum we are never all going to agree with each other.

 

One thing thats shocked me is the ammount of people that agree with me........very few it seems.

 

All Im saying to the part-timers is charge a proper rate, I bet most of you actually subsidise your DJ business with top ups from your regualr incomes (I know I used to when I was doing it for a hobby)......thats how come you can afford to go out for £150.......

 

So what choice am I left with.......go back to charging what I did before.....get more gigs and earn more money.....

 

Simple choice, which would you rather do......

 

20 Gigs earning £2000 or 30 gigs earning £2000.......

Those part timers would probably say 30 gigs for £2000 coz they do it for love not money

so before you were full time you were charging £150 kettle calling teapot black i believe(sorry if i miss read that bit)

why don't many agree with you, even the full timers seem to be telling you to improve your service and aim for the right market accordingly.it's not that complicated really.you won't find many 18ths willing to pay that sort of money ,you need to really aim at the wedding market. don't blame your problems on others look at your situation and then you will find a way out. i honestly believe your prices are in your hands not others my last tip is don't look down at the disco's charging less than you look up to those that charge more than you and find out what they do differently to you and aim to copy them. i know some of us is upsetting you and you might be in difficult circumstances but you started the thread attacking all part timers.