Downturn To Come?

[Dukesy 0]

Was performing in the North East on Saturday and speaking to someone who had noticed a drop in wedding bookings at the venue for next year. He said "It's the recession. It don't look good!"

I asked whether the smoking ban had made a significant difference to bookings but he said that fortunately, unlike other venues, they had been ok since its introduction.

 

With deep concerns in industry (CBI) that the UK economy is deteriorating faster than it previously thought, and according to business news reports, high inflation and slowing growth have prompted fears of a 'possible recession', I was wondering "when" the knock-on effects will ripple into our type of business in the months to come.

 

So as the nation is reported in the news as having to tighten its belt a little more every week, and naturally our 'potential clients' cut back on spending and change social habits (as reported by the BBPA) are you concerned about disco bookings in the foreseeable months and when do you think the greater down turn will 'kick in'?

[DJ JENX 0]

Well I have seen a decline in both enquiries and booking at the moment, I think that things will get quieter.

 

Reportidly there are a few DJs around here who have dropped their prices from the 150 mark to 90 odd for weddings....wow.....thats a big loss, but they are now getting a lot of bookings.... I really dont want to do that, might as well pack it in if competing for 90 quid gigs....

[Paul Smith 0]

I think that Weddings are more 'Recession Proof' than a lot of other things. Haven't noticed any adverse effects yet.

[Danno13 0]

Yep I agree with Paul. It does depend on the market that you target, I can't see the big marquee/country house weddings being affected!

[Robster 0]

I have had more enquiries than ever , i think thats because i am getting better at what i do... doing regular pub gigs is going to be my shop window for functions , i have always turned them down before except for friends ..now i am happy with my skill level and equipment and i believe i offer good value for money i will start accepting the offers.

 

i hear doom and gloom but work is there in the right markets/Areas

[TonyB 0]

For weddings it could be to the happy couples advantage as a few venues around here are doing special offers and cutting prices to try and entice custom. Still seems to be plenty of work out there though. Hits to my website was the highest it has ever been last month and this month is pretty busy too.

[Dukesy 0]

Yep I agree with Paul. It does depend on the market that you target, I can't see the big marquee/country house weddings being affected!

The venue in question was a 19th Century Mansion and considered the finest venue of its kind in the North! Perhaps its a demographic thing. :shrug:

[Kingy 0]

I have more wedding work contracted for next year than I have had at this stage for a few years.

 

There is deffinatley less conference work and fewer corporate bookings in the diary for THIS year.

 

Tough times ahead.

[jamesmurphy 0]

Well to be honest we are doing better than last year and are investing more into the business as we are pushing onward.

We are getting more enquiries about next year than we did last year, and we're quoting more than this year, so I'm not gonna worry about the recession.

I've decided we're not going to have one!

[Dukesy 0]

Well I have seen a decline in both enquiries and booking at the moment, I think that things will get quieter.

 

Reportidly there are a few DJs around here who have dropped their prices from the 150 mark to 90 odd for weddings....wow.....thats a big loss, but they are now getting a lot of bookings.... I really dont want to do that, might as well pack it in if competing for 90 quid gigs....

Interestingly, I've seen an increase in DJs and have noticed that even the 'video DJ' service is now available to hire from £120 - and that includes plasma's!

Maybe those DJ's whose clients have booked much earlier and in advance will probably be okay with plenty of work 'gathered', and maybe bookings for 2009 and beyond will go thin on the ground? Either way, if there is a down-turn, once the 'fat' of the land is gone and used up, I predict fighting for the rations! :bouncy:

 

This makes interesting reading!

looks like February and May 2009 will be fun!

Edited August 18, 2008 by Dukesy

[McCardle 1]

this thread is especially ironic for me, as today I got a phone call from a client, who is rescheduling their wedding reception from November to the middle of 2009. The reason that she gave, is that both herself and her partner work at the same company, and last month they were both issued with redundency notices, and currently they are still both looking for new jobs as a result. I guess they are, wisely, putting off the expense until a time when they are once again financially secure.

 

So on this basis, yes I do believe that the downturn and approaching recession will negatively affect our industry, because I not only agree, i've had first hand experience of what may be the start!.

 

Also bear in mind, that currently our own personal workload is probably derived from enquiries and bookings secured 6, 12 or even 24 months ago, and our work this weekend has probably been booked months or even years ago. The worst impact of the recession, if it happens, is predicted to hit during 2009, which will mean that any knock on effect to the leisure industry will probably only become known to us, in 2009 when enquiries may suddenly drop off, and then later in the year or even 2010 when we would normally be doing the work that was secured in 2009. So don't edge your bets and become complacent just yet.

 

Of course there are various other financial aspects which may hit an engaged couple, which go beyond the actual cost of the Wedding and may dictate whether or not they DO decide to name a day or not. The main one of course, is the availability of a mortgage and their financial ability to get one. In the current (and predicted) economic climate, if one or both of them are unemployed, or are forced to take lower paid jobs then it may seriously reflect on whether they get married or not, as there is little to be gained from marriage and then moving back in with the parents!.

 

It will be interesting as time goes by to see whether the above situation which happened to me today, becomes more widespread, with couples delaying their big day until their job security becomes more defined, and whether 2009 does become a record breaking quiet year for us all.

Edited August 18, 2008 by McCardle

[Dukesy 0]

Those who have set up their own businesses tend to be among the worst at foreseeing their collapse, experts say.

Personal finance reporter article to read here

 

[Gary (GDK) 0]

It is hitting me hard now. A big propotion of my income is childrens parties and they usually get booked four to five months in advance. When bookings are being made they now cutting back on things. Facepainter bookings have dropped at least 75%, possibly more.

 

Not being in the wedding market either, I'm feeling more mainstream adult parties.

 

Top and tail of it im not booked till the 30th & 31st August, where on the Saturday I've got an 6th birthday and 18th and on the Sunday a 7th birthday. Sunday's party didn't even want the magic show or a facepainter!

[markthedoc 0]

Well I have seen a decline in both enquiries and booking at the moment, I think that things will get quieter.

 

Reportidly there are a few DJs around here who have dropped their prices from the 150 mark to 90 odd for weddings....wow.....thats a big loss, but they are now getting a lot of bookings.... I really dont want to do that, might as well pack it in if competing for 90 quid gigs....

 

£90?!

It's hardly worth the effort for £90.

What area are you in Jenx, out of interest?

[Bouncy Dancefloor 0]

i havnt noticed a downturn in work, however ive noticed people are leaving it alot later to book!

 

I dont know if its because im in Gloucestershire and last Summer was a total washout with the floods and then the Water being cut off. So alot of people's parties got ruined.

 

Working for a company that can supply 8+ DJ's on a night, we've found ourselves with 2-3 gigs for a particular Saturday night until 2-3 weeks before, then we get fully booked up!

[davemoody 0]

Have to say that I am busier than ever. I even put my prices up in January and still getting the bookings.

[Wayno 0]

things are looking ok for jan and feb 09 with 6 bookings over the period at the moment normally this time of year is dead for me.

on the flipside March and april are dire but may change nearer the time.

 

I had increased my prices of 09 but may freeze them to 08 prices I think taken them down anymore is a backwards step and I will ride that out as long as I can afford to.

 

I'm thinking of cancelling all of my insurances and business costs and getting a PAYG mobile and and charging £100 cash a night. - JOKE!

Edited October 16, 2008 by Wayno

[DiscoandKaraoke 0]

I do most of my work for an agent who used to charge around £200 a job and pay his DJs around £160, as the sheer quantities of £40 fees would cover all his expenses, and make him a tidy profit.

 

Now, he charges from £200 to £250 a gig, but takes a higher fee to cover his expenses, as he gets less gigs.

 

For example, the one I'm on tonight (and using their wi-fi as we speak!) he charges £220 for, but I get only £130. Two years ago, he'd have still charged £220 for the same gig, but it would have been worth £160 to me, at least.

 

So there's definitely a downturn going on.

 

[Danno13 0]

For example, the one I'm on tonight (and using their wi-fi as we speak!) he charges £220 for, but I get only £130.

 

And your happy to work knowing he's taking a 70% comission?? I know where I'd have told the agent to stick his gigs...

 

The above example isn't one of a downturn, it's a greedy agent! If he wants to raise his prices, he should look at tapping into better markets and keeping the same level of work, not getting less work and ripping off his DJs to compensate!

Edited October 17, 2008 by Danno13

[DiscoandKaraoke 0]

 

And your happy to work knowing he's taking a 70% comission??

 

I wouldn't say happy, no, but work isn't that easy to come by on a Thursday night, and I'm happy to work 7.30 to 11.30 with laptop only for £130.

 

To be honest, given how easy the job is, if they'd come directly to me I wouldn't have had the nerve to charge them £220, but my agent did and got the gig. I say fair play to him. He's a pretty good businessman, whereas I'm a rubbish businessman but a good DJ.

 

70% commission, leaving me with £130, is better than sitting at home making nothing at all!

 

[Danno13 0]

It's your perogative, but I would have asked the agent for more money if I knew he was making that much on top.

 

If more decent DJs did so, he'd be forced to up his rates, or face complaints about the lesser quality DJs he'd be putting in, instead. :)

 

70% commission, leaving me with £130, is better than sitting at home making nothing at all!

 

Well that depends on your outgoings, I worked out recently that it costs me, on average, £280 a week (before Tax and NI) to run the business, so say I did 3 gigs in that week, that particular gig would net me £37, so about £8 an hour if you include travelling, setup etc. Surely any DJ is worth more than that??

 

Anyway, I didn't want to turn this thread into a pricing argument, my point was that your example wasn't anything to do with economic downturn, £220 isn't too bad a rate to get on a weekday by any standards.

Edited October 17, 2008 by Danno13

[Andy Goodtimes 0]

Unbelievable that there are those going out and doing Weddings for £90...YeHa!

 

I guess there will always be work 7 nights per week for the sub £150 DJs. I think the middle market from £150-£300 will suffer as that is the kind of work that folk might cancel to save money and also be taken on at lower rates by other DJs. I think the higher end Wedding and Corp market will be fine.

[Dukesy 0]

If more decent DJs did so, he'd be forced to up his rates, or face complaints about the lesser quality DJs he'd be putting in, instead. :)

IMO, there are decent DJs everywhere - take the pub or club DJ who has to be sharp and deliver a 'good night' week in, week out...because if he or she can't, there's ALWAYS somebody out there to replace them who can, and will for same rate or for far, far less! smile icon

 

 

 

 

[UKHero 0]

It's your perogative, but I would have asked the agent for more money if I knew he was making that much on top.

 

If more decent DJs did so, he'd be forced to up his rates, or face complaints about the lesser quality DJs he'd be putting in, instead. :)

Well that depends on your outgoings, I worked out recently that it costs me, on average, £280 a week (before Tax and NI) to run the business, so say I did 3 gigs in that week, that particular gig would net me £37, so about £8 an hour if you include travelling, setup etc. Surely any DJ is worth more than that??

 

Anyway, I didn't want to turn this thread into a pricing argument, my point was that your example wasn't anything to do with economic downturn, £220 isn't too bad a rate to get on a weekday by any standards.

 

Danno

 

How would you handle one of your DJs if they came back to you as the agent and asked for more? Also what percentage dose your agency charge your DJs? Examples please

 

 

 

Nik

[Danno13 0]

I know what the DJs I use are happy to earn for an evening and speak to them regularly, so I know if things change or if they're having a quiet month and might work for a bit less (which means I charge the client less and perhaps stand more chance of getting the gig, not pocket the difference!)

 

I then add my part on top, which is generally somewhere between 10-20%, this means there should never be a situation where they ask for more, and is the correct way that agencies should work (fairly sure its in the BERR guidlines somewhere).