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The Pursuit Of The Right Price

 

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 Did You Raise Your Price?

 Sid Vanderpool


With all this talk of Mark Ferell and everything... How many actually raised their prices, and what to? And the results?, Glenn Miller of DJchat.com asked his visitors and here is what they said:

Scott Susor:
Raising your price by $50 or $100 doesn't count. Ferrell's message was that *HE* gets $2500.00 a gig -- *HE* averages $1900.00 a gig -- and *HE* is "worth more than a veggie platter. The implication, of course, is that everybody else is too. He SUGGESTED that, as a first step, everybody should IMMEDIATELY raise their price to $1200.00 a gig.

So, the question, "Did you raise your price?" is not appropriate. The question should be, "Did you raise your price to $1200.00 a gig?"

Pete Goodrich:
Yes, we raised our prices $200 more per package we offer. Now for 2000 weddings at $799, $999 & $1199 respectively. No, we're not to the $1200 for the "base package" yet, but we are working steadily towards that goal. Helping to re-mold & re-educate our market to support those rates - across the board. Mark's advice was excellent - learning how to apply more, recognize more, educate more & as a result, get more! We've been doing that - now we're nearing the time to take it to the next level. It takes leaders to instigate change in this industry - Mark F. is one, I hope to be another - leading by example!

Mark Thomas:
I've increased my prices steadily since 1995 from $495.00/4 hours. I am now asking $1,200.00 and averaging $1,000.00/4 hours with $150.00 overtime. My "full-time" contractors are $950.00/4 hours and our "part-time" contractors (they work other jobs and definately do not give the same service as our full-time guys) are $750.00/4 hours. I adhere to strict quality standards and "one on one" service which makes a huge difference. I thank my "competition" for educating me through our local DJ association. People like John Stephenson of Music Masters ($1,200/4 hours) -- Mark Ferrell ($2,000/4 hours +) -- You Should Be Dancing ($750.00 back in 1989!!) have all had an influence on me. It is amazing to see colleagues now commanding $1,500.00 to $2,000.00 on the average. The main reason: communication with DJ's --- Education for the client (and DJ's) --- Higher Standards and better customer service. If there is someone in your area that is commanding twice your price...you MUST question your customer service, professionalism or ability!!

John Gallagher:
I think if I raised my prices in my area to $1200.00 per gig I'd be doing more wakes than I would wedding receptions. And it would be the bride and groom's wake.

Dave Hilton:
Most of the people charging the average $1200 per gig are living in LARGE areas...Big Metropolitan areas where the standard of living is quite different than around here. But should that make a difference on what we are worth?

Question: (to set an example) WHAT IS THE AVERAGE PRICE OF A 3 BEDROOM HOME IN YOUR AREA? $100,000? $200,000?

The average here is $40,000. Actually our area is considered one of the poorest in the whole U.S.

Now do you think I should only get $300 or $400 a gig here because of this?

NOPE! A 3-4 hour wedding reception is $550. $650 with Karaoke. My School rates- $500 for up to 4 hours in a big school (3A, 4A, & 5A) to $350 for up to 4 hours in a small school (B, 1A & 2A). But for my average Corporate Event it's $850 for up to 4 hours.

These prices are definitely on the high end for this area...but I've worked hard to get myself to this position! Do I think I should raise my price to $1200 per gig? To be honest- I don't know...I don't know if people would pay that much here. Maybe in Dallas...but maybe not here- I WON'T KNOW UNLESS I TRY THOUGH!

But even if we were to take the advice of $1200 average I would need to charge $1850 per gig to offset the local bottom feeders getting this outrageous price for their average performances.

Remember...you have to convince potential clients that you are worth your asking price. That is the biggest step! It's basically getting all you can from what you already have. A strategy is always needed in business...what is yours?

I always stress- NEVER UNDERSELL YOURSELF! If a client beleives/knows you're good- you will get your asking price.

Kelli Burns:
Yes, my prices went up immediately when I returned home and picked up the phone. I always thought I could charge more, but did not. Mark allowed me to raise my rates and educated me on how to educate my customers..thats Big to me! I went from $650.00/5 hours to $850.00/5. The next call that comes in will be $950.00/5 hours. I have chosen to slowly raise my rates at a pace that I can sell my service. I have delivered a better product also to my clients.

I have contacted several other DJ's in the area and want to get together with them and start my own wedding exchange networking group so to speak. Say......We would meet once a month and exchange ideas and what is in your wedding questionaire that can help you make thier reception the best it can be etc..

 


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