Question about Pricing

[ian 0]

I've never had a very clear policy about pricing and have always charged what I think was reasonable. However, I'm now in the position where I'm charging all sorts of different amounts and think I should have a clear policy. However, I'm unsure how to go about this without either losing money at the top end (of my current charging) or losing clients off the bottom end.

 

The thing that got me thinking was that last Friday I charged as much for 1 hour of DJ-ing as I did the previous Friday for a whole evening (10pm to 2am). I feel this was justifiable for a couple of reasons, for example:

• The 1 hour gig was to around 400 people, whereas the 4 hour gig was to around 100 people - so I think that my price per person per hour is the same for both gigs
• For the 1 hour gig, the entry price was around 10 quid per person, whereas it was about 5 quid per person for the 4 hour gig
• The crowd for the 1 hour gig was a tougher crowd and, knowing this, I spent some time preparing the night before (working on possible tracks to play, what mixes to make, etc)

So, this got me to thinking that simple things like number of hours playing and distance to travel aren't necessarily the only things to take into account. Perhaps I should be looking at things like size of crowd, expected door takings, how specialist the crowd is (how much I want to do the gig, perhaps, maybe non-financial gains like high-visibility)?

 

My basic dilemma is that if I price purely on hours played, I'd either lose a lot of my bottom end gigs or give up money on my top end gigs.

 

So, what does everybody else do? Do you simply base your price on number of hours playing or do you make more complex calculations based on other factors too?

[Jearley 0]

I have never worked it on amount of people just hours there is a claus in that though i.e. if the venue is so big that the hire of equipment and roadies are necessary.

 

but I think it generally complicates matters work out your basic price structure i.e. 8pm until midnight for ex amount then ex amount per hour before and ex amount after

 

I dont think that is un-reasonable...

 

Saying that for the hotel gigs i get a wopping bonus of 25p per person over 50 people.....wow

 

i gue the bottom line is as long as your happy and keep a record its up to you!!

 

what i forgot to mention is a min. cost....i.e. for the 1 hour gigs.....which would be the same as your basic gig cost i.e. 8 to midnight....

Edited September 19, 2005 by Gary

[jackcu 0]

I charge the same hourly rate regardless of the duration of the gig.

 

Makes life simple.

 

Jack.

[DJF 0]

i agree with jack charge a standard per hour rate

 

normally in and around me i charge £30 per hour disco or £35 per hour karaoke

 

regardless on the venue or amount of people

 

would only charge extra for distance and possible standing time.

[stevie 0]

I just fix a price with the client and if i end up working longer i charge accordingly,normaly £15 an hour.

 

The normal startin price is £100 but i do the local pub for £80 cos its great fun and a night out aswell and i only need decks amp speakers no lights just a simple setup easy money

[ian 0]

Thanks for your comments everyone - I can see where Jack and Foggy are coming from, but a standard hourly rate would be difficult because I'd either lose money at the top end or (potentially) lose clients at the bottom end. So although I'd like the simplicity of it, I think the financial side would take a hit.

 

I'm tending towards Jearley and Stevie's view of a charge for an evening (with a maximum number of hours included). My fee seems to work out about the same whether I'm DJ-ing for 1 hour or 4.

 

Thanks also to Foggy and Stevie for letting me know your prices - they've reassured me that what I'm charging is about right, at least for some of my gigs.

 

Broadly speaking, I get three types of gigs. The ones where I'm hired as DJ for the evening (usually from 10pm to 2am) - I price these at between £30 and £40 per hour (which seems in line with your prices). The second type is where I am working with other DJs, where I will usually play for 1 or 2 hours. For these, I've been charging more - usually 2-3 times as much per hour (for the reasons I gave in my original post - mainly because they tend to be bigger events). The third type of event I get are weekend events, where I'll be playing 6-8 hours over Friday/Saturday/Sunday night.

 

If I switch to a "per four hour evening" pricing strategy, I'd think the numbers will all work out. The justification would be "it doesn't matter how long I play at your event, it still means I can't get another event somewhere else". The weekend events I would price as if they were 3 evening events.

 

Thanks everyone for your help on this - I think I'm a lot clearer on this now.

 

So, a follow-on question - do you publish your prices on your web site?

[stevie 0]

http://www.dj-forum.co.uk/html//emoticons/042.gif Ian

 

Glad to help.

 

I dont have a web site yet but i will soon, but i wouldnt quote prices on it! as all gigs arn't the same.

 

Best advice is don't underprice or go over the top just be fair a pro and you will always have work

 

Stevie

 

 

 

[robbiedj 0]

We quote for "up to 4hrs", depending on distance and venue and the rig required.

 

After that, it's an additional cost per hour, usually around £50.

 

I find that the type of function and venue size tends to dictate the rig you take.

[Dukesy 0]

Quote fees up to 12.00 Midnight based on 5 hours (max) entertainment.

 

Price transparency - listed on Website for area covered, including promotions.

[jeffwall 0]

Same as foggy really £30 quid per hour but then apply a "more money factor" if the venue is especially difficult or first/second floors etc. Also if a 4 hour wedding comes in that would be £120 but usually charge 140/150 for a wedding! So that throws the hourly rate out the window!

Weve had this discussion before on here, im sure people will agree, the problem is people are tight and want it as cheap as possible when your up against the 60 quid a night 2 candles and a wod box dj!

Youll struggle to get more than 150 average gig round ere (southport)

[Hugmaster 0]

Hi

 

Pricing for me is simple and not based on size of croud unless it means hiring in equipment.

 

First 4 hours £220.00

 

Thereafter is £35.00 per half hour.

 

Weddings, flat rate of £290.00 for first 5 hours, includes extras services,e.g. home visit etc.

 

Kids parties, start at £120.00 for 2 hours.

 

We state on the quotation form and bookin agreement that we reserve the right to add extra charges for travel, awkward access etc.

 

Since we increased our charges, we're getting more business and I don't worry about the undercutters any more, leave them for the price shoppers.

 

Darren

[C.S 0]

First 5 hours £500 , £50 an hour after that rising to £100 an hour after 4 am.

[Award Entertainment 0]

This is always a contentious issue and I wish I'd adopted the principles of the financially successful DJs around the world about 15 years ago rather than just in the last 5 or 6 years. When looking at my price (currently £540 for a summer wedding), I factored in several "what if" factors and based my starting rate on a worst case scenario.

 

I asked myself "what would I charge if the function":

• Was an hour's drive each way
• Required all of my lighting and sound gear
• Ran from 5:30pm until 1:00am
• Required me to be the Master of Ceremonies/Toastmaster
• Needed a prior meeting with the Bride & Groom
• Was upstairs or had awkward access

Once I'd painted an image in my head of this function, I took my base rate and added on for each ‘challenge’, such as £50 extra for travel time, £40 per hour for the time over 5 hours and so on.

 

In working out a base rate, I factored in many things including profit, replacement of equipment, music purchases, furthering my DJ education, stationary, my hourly rate, car expenses, advertising, shows, and hospitality costs. My base rate plus the additional factors gave me a figure of NZ$1400 (£540) which I then applied to all functions, so if I have that awful gig, I don’t need to add expenses to my standard rate and if it’s not a tough one, I do very well out of it.

 

Easy! http://www.dj-forum.co.uk/html//emoticons/biggrin.gif

[Dukesy 0]

http://www.dj-forum.co.uk/html//emoticons/biggrin.gif

[High Fidelity 0]

My pricing is dead easy.

 

7pm till midnight (or part thereof) £XX

Before 7pm £XX per hour

After Midnight £XX per hour

 

If more than 45 minutes drive away then £XX per hour's driving.

 

Anybody who answers the phone at home can give a price for a gig by simply using the formula above.

[ian 0]

Thanks for all these comments - really useful stuff.

 

I'm thinking now that I will ignore the number of people, because I can't think of an easy way to handle it (it just feels like I should get a better cut of the money when there are a few hundred people in who paid a tenner each).

 

So, it's looking like a basic strategy of a flat fee for four hours, an additional hourly rate for each hour over that (with maybe an increased hourly rate after 2am). In addition to that, there will be costs for travel and possibly for overnight accommodation (I'll probably do that based on distance - up to X miles travel included, over X miles are charged for and over Y miles overnight accommodation to be provided).

 

And I think that I'll go for this "price transparency" thing and put the prices on my web site (when I've built it http://www.dj-forum.co.uk/html//emoticons/biggrin.gif ). The timing seems good - I'm not taking any more bookings this year (at least, that's the plan) so this could be my 2006 price plan!

[Steve_Mitchell 0]

Depends if you want the job:

 

 

[Elite 0]

May also consider moving to New Zealand to get the sort of money that Rendevouz charges - do you need an Auckland branch setting up? My brother lives there!!

 

 

 

 

[Paul Smith 0]

I've gone t'other direction and taken the prices off my site http://www.dj-forum.co.uk/html//emoticons/wacko.gif

 

You do need a price formula though because people talk to each other and may question why you are charging someone £X and have quoted them £X+50 for the same venue.

 

Recently on one of the wedding forums price comparisons were being made (including mine) and there was a difference of £25 between one who had already booked me and one who was looking to book me. The reason was that I had put my prices up to cover increased expenses/inflation and this was accepted and the 2nd booking aquired http://www.dj-forum.co.uk/html//emoticons/biggrin.gif

 

Another possibility (which has happened to me twice recently) is that 2 or more people may phone/e.mail you for a quote for the same event - these enquiries may be weeks apart but it is important that you give each of them the same price.

 

Working out a price formula is really down to the individual. Some choose the 'one price fits all' whilst others factor in distance, venue, access, number attending, hours, day of the week and even the type of function (have I missed anything?). Find a method that suits you/your area, apply it to all quotes and you won't go far wrong http://www.dj-forum.co.uk/html//emoticons/smile.gif

 

Paul http://www.dj-forum.co.uk/html//emoticons/cowboy.gif

 

 

[DJF 0]

i would normally charge a bit extra if it was a BIG thing. a normal wedding say 7.30 start-12 finish would be £195+£30 per hour extra arriving at 6.45 to 7.00 set up.

[Award Entertainment 0]

QUOTE (Elite @ Posted on Sep 21 2005, 01:10 AM)

May also consider moving to New Zealand to get the sort of money that Rendevouz charges - do you need an Auckland branch setting up?  My brother lives there!!

I'm pleased to say that there's no point looking at it and saying it's my market that allows my rates to be so high, because almost every other DJ in New Zealand is only getting £170 to £200. They all swear black & blue that you couldn't get £540 here, but I do it 25 to 30 times a year, so I guess they're wrong.

 

Here's the key factor and I'll put the critical bits in bold:

 

An average to above average Entertainer/DJ/MC will have a hard time getting top dollar, but if you can demonstrate to a potential client how you can make their night tasteful, memorable and unique and also convince them you are 100% trustworthy and ethical, you'll be able to ask your price in virtually any market and get it.

 

Why shouldn't a true professional who is leading their market be able to ask a professional fee? I miss out on dozens of events each year because I'm so expensive, but I also book plenty as well. Read my feedback page to see if you think my clients felt they got great value.

 

Not everyone is cut out to be the top of the market and half of all DJs are below average in ability. Don't be one of them! http://www.dj-forum.co.uk/html//emoticons/biggrin.gif

[Nick Logan 0]

QUOTE (ian @ Sep 20 2005, 10:32 AM)

So, it's looking like a basic strategy of a flat fee for four hours, an additional hourly rate for each hour over that (with maybe an increased hourly rate after 2am). In addition to that, there will be costs for travel and possibly for overnight accommodation (I'll probably do that based on distance - up to X miles travel included, over X miles are charged for and over Y miles overnight accommodation to be provided).

Here's another angle. If you go out and work for one hour, what are they chances of being able to do a 2nd event that same evening?

 

The way I look at it, I could make $xxx on any given Friday or Saturday. Even if I only work for an hour, the night is still worth the same amount. I could be making $700 for four hours, and that's what I am worth.

 

What I do is quote a set rate for up to 4 hours. This way, even if they only need me for 2 hours, they have me for 4.

 

I also offer an unlimited time option. Let me know if you'd like to hear how that one works. :)

 

 

[mikeee 0]

Ah, Welcome Nick, long time no speak.

 

Totally agree, you quote for "Upto 4 Hours" then add on extra time at pro-rata. Then add travelling etc etc on top of that.

[Steve_Mitchell 0]

QUOTE (Rendezvous @ Sep 20 2005, 08:16 PM)

. Read my feedback page to see if you think my clients felt they got great value.

Is this coshe?

[ian 0]

QUOTE (5star @ Sep 20 2005, 12:35 PM)

I've gone t'other direction and taken the prices off my site  http://www.dj-forum.co.uk/html//emoticons/wacko.gif You do need a price formula though because people talk to each other and may question why you are charging someone £X and have quoted them £X+50 for the same venue.

Well, this is really at the heart of the issue for me. I'm saying that I wasn't sure it was fair to be charging all these different prices, but I think at the back of my mind was "what if these people talk to each other"?

 

That was making me think about pricing in the first place, and also stopping me from putting prices on my web site. I didn't want to put up an hourly rate and then have someone turn round and say "but I paid you 3 times that".

 

I think I was also worried that by publicising a low hourly rate, I'd be giving a "cheap" impression and making it more difficult to be taken seriously for the more expensive events.

 

I think that pricing around an evening rather than an hour solves those problems (or at least gives me a reasonable justification).