Love it when clients want the same price as last time....arggh

[DJ Ricky B]

I have a client who has used us twice in the past. She inquired about October 24th which is an in demand date. I do have DJs available, but she wants the same price as last time, AND that price was the same price as the time before that years ago. I tried to explain to her that it's an in demand date, and if she were throwing the party the night before (On Friday which has no demand) I'd be happy to offer her the same price as last time, but can't do it on this particular Saturday.

The price I quoted her is $215 higher than the price she paid in May DJ, which is the same price she paid when she booked a DJ through me back in 2011. Even at $215 higher I feel I am still giving her a good price for a 4 hour Halloween party.

Some clients just never want to pay more than they paid for a service one time. I wish my bills could always stay the same too! Just a bit of a rant. ...I might be losing her to another DJ service over asking for more money, but it is what it is. ..I even offered to throw in a low lying effect fog machine since it is a Halloween Party, but she didn't care or even say thanks for the offer. Just wants the same cheap price.

 

[Jas]

I find it hard to raise prices with repeat customers because they are rare in this business. But I see your dilemma if Oct. 24 truly is a date with other possiblilites. I've got one hot lead for that date, but that's about it.

 

[Hank Davidson]

You have DJs available?

So, what that translates to is that she has to pay both you and another person for the job. Sounds like that's YOUR problem and not hers. It doesn't get much easier than a 4 hour, Friday Halloween party in this business. A rate good enough for one night, is good enough for another. You're gambling on this so called "in demand" one over a couple of hundred bucks. A returning client and their potential referrals are worth more than that., in my opinion.

 

[rhythmgj]

Yes, I'm inclined to agree with Hank-- you should "Reconsider, Baby." Take the hit, and you may get a call for another date (or not). But this client's loyalty has earned some from you, and if she's been a regular customer, that's likely to continue, so your additional few hundred dollars doesn't outweigh the possibility of ?? how many more future gigs? ...When maybe you don't have so many options. Call her back and tell her you're giving her a "loyalty discount."

With my bands, when we had clients re-book on a regular basis (say, annually), we would also try and get a raise. But at something easier to swallow ($50 at a time). It's the old "slow-boiling frog" analogy.

GJ

 

[Proformance]

You have DJs available?

So, what that translates to is that she has to pay both you and another person for the job. Sounds like that's YOUR problem and not hers. It doesn't get much easier than a 4 hour, Friday Halloween party in this business. A rate good enough for one night, is good enough for another. You're gambling on this so called "in demand" one over a couple of hundred bucks. A returning client and their potential referrals are worth more than that., in my opinion.

So true. Retaining clients with recurring business is more important than what you charge for any singular event.

Ricky, you have not provided anything that would substantiate the increase. She has asked and you have offered EXACTLY the same service she has used in the past, with nothing to explain the increase save but, your desire to gamble recurring business for a momentary higher take.

There are times when you can explain to someone that you discovered you were undercharging for something but, you admit that for the same thing on Friday night you would accept less, and have accepted less on at least two other occasions. Despite your assumptions about how to run a DJ business - there are always seven days in the week and you choose to put all your eggs in a Saturday basket at your own risk.

The way to increase rates on repeat customers is with small adjustments over time on the same service, or substantial upsell that positions you as a larger stake holder in their budget. For example, I started 11 years ago with one client as their Video DJ with Lighting for $6,000 and now handle the entire event staging for over $17,000. There was virtually no change in the first 2 years, and only $1,000 in the third. However, holding a repeat customer for 11 years is more important than the take on any single event. A list of clients that are returning to you year after year is business without advertising - income without the cost of acquisition.

That same customer has also been either directly or indirectly responsible for the acquisition of at least 6 other recurring clients and numerous other one-off events. Customer loyalty has a value much larger than a few hundred dollars.

I would not recommend any kind of benevolent comment to this client that may come off as condescending such as: "I've decided to offer you a loyalty discount." The fact is, a loyal customer should be the RULE not the exception. Simply tell her you were mistaken - there is no reason she can't have the same rate again this year and that you'd like to later look to see if there is something more you could be doing to enhance her event. Simply serve the customer and keep your monetary goals to yourself. No one needs to know your targets, peak days, or any other details about your business plan.

 

[DJ Ricky B]

Sorry guys. If you always give them the same price, you will never be able to raise your rates.

And no, she hasn't referred us to any one else over the past 5 years that booked with us. She booked in 2011, last May, and now looking to book again in October.

I went to a carry out place today. I had a menu from 3 months ago. They have lunch specials listed on the menu for $5.49 for a sub and fries. Today I called and ordered 3 sub specials, and the total with tax was $22.23. They raised their sub specials to to $6.99 + tax.

Should have I told them their price was now too high, and I want the old $5.49 price from 3 months ago that they had for the past 3 years?

It looks like I am booking October 24th for a wedding which is more than double the price quote of this party even at the newer higher rate. Now I only have my brother Terry available, and it's pretty likely something else will come in if she thinks our price is too high for her party on this date.

Sometimes you just need to learn to say no to clients. Doing the work for low rates all the time won't get you any where.

Hank's motto is "Affordable, but priceless" . He prides himself on being the cheapest, or one of the most affordable options in his market. That is not how I want us to be known as. I value all of my past clients, but if they won't pay rates more in line with what today's market is bearing and what DJs need to continue to run a stable business, then by all means I am willing to let them go with the cheapies out there still charging below $400 like DJs were doing 20 years ago.

Now if her gig was last minute, and my DJ really wanted to work, and needed money, then maybe I would book him at that low rate again to get him work, but there is plenty of time to book October 24th still and seeing he will be my only DJ left available, I'd rather reserve him for a client willing to pay a healthy fee.

 

[DJ TJ]

Like Rhythmgj mentioned, I am also a believer that loyalty programs/discounts are a great way to retain business.

As I've made it known, I'm one of the biggest proponents for raising rates and not working for cheap but I think in this case the loyalty in the long run will be of more benefit to you.

Do the gig but make it clear to the client that you will not be able to continue to give them that rate in the future due to increased costs etc... "but since I really appreciate your repeat business I will continue to give you a loyalty discount of 10 or 15 percent" or something similar.

Implementing your own loyalty discount program going forward for all clients will eliminate similar situations like this, and although you are giving a discount, it will still be based on your current pricing not something really cheap from your early days in the business.

We all give discounts of some sort anyways, so if your going to give a discount why not use it as a marketing tool that will pay you dividends in the form of future repeat business, instead of just giving away cash which is what we would be doing otherwise.

 

[rhythmgj]

Sorry Ricky-- There's a reason so many are disagreeing with you, and it's not because we don't believe in ever raising rates.

This is pretty simple. You not only "look" wrong-- you are wrong. For instance: >>>>Now if her gig was last minute, and my DJ really wanted to work, and needed money, then maybe I would book him at that low rate again to get him work, but there is plenty of time to book October 24th still and seeing he will be my only DJ left available, I'd rather reserve him for a client willing to pay a healthy fee.<<<< I understand what you're saying, but let's analyze; you are penalizing a proven, loyal customer for wanting to make a repeat booking, and for wanting to do it early, and you are holding her to a standard that doesn't really exist or apply ("maybe a higher priced gig will come in"), while she is going by a standard that does (you established an expectation of consistency by booking her several times over at the same price). She doesn't care how much your workers want to work; that's your problem. She wants to book a DJ, and according to previously established business, she should be able to, cut and dry. You are also penalizing your other DJ, your business, and yourself, by withholding an existing booking, in exchange for a non-existent/wishful-thinking booking. The whole thing is a bit "bass-awkward," imho...

I know it's a pain to try and raise rates (which is why I never want to go in too low to begin with; you are establishing precedent), but I'll take solid repeat business over a quick cash-grab any day...

GJ

 

[Jeff Romard]

I have to agree with the others Ricky. Put yourself in the clients shoes. In 2011 you paid one price. In May 2015 you paid that same price now it's 4 months later and it increases by $215.00 ( Which I find to be an odd number but...). If you were going to put in an increase May would have been the time to do it they probably would have understood a lot better then than now.

What are you offering now that makes you worth an additional $215 that you weren't offering in May?

People understand that rates go up but when it's a 30%+ increase in 4 months when it didn't increase for 4 years it's a bit hard to swallow. The first thing I would thing is you are gouging me because I'm a past client

 

[DJ Ricky B]

I have to agree with the others Ricky. Put yourself in the clients shoes. In 2011 you paid one price. In May 2015 you paid that same price now it's 4 months later and it increases by $215.00 ( Which I find to be an odd number but...). If you were going to put in an increase May would have been the time to do it they probably would have understood a lot better then than now.

What are you offering now that makes you worth an additional $215 that you weren't offering in May?

People understand that rates go up but when it's a 30%+ increase in 4 months when it didn't increase for 4 years it's a bit hard to swallow. The first thing I would thing is you are gouging me because I'm a past client

Perhaps, but it happens that way to me A LOT of the time with advertising outlets.

When my renewal came up with Wedding Wire, I had a 38% increase over the year before, 38%! ...And the year before, it had increased about 25% from the previous year before that. ...That is a crazy increase over just 2 years.

How about with new cars? The same model in 2015 is considerably more expensive than the same exact model in 2011. I know Chevy's prices has risen about $1,300 a year since then. A Traverse in 2011 base price was like 26K, today, a new traverse today is 31k

To give you guys more insight into this client transaction...

Back in 2011, I worked with her at a Holiday Inn. She was a Chef. I gave her a discount on a party she threw at her house. I explained at the time that I normally do 4 hour parties for $525, but gave her a $190 discount since she was a co worker.

4 years later in May, I gave her the same price, and told her my bro was willing to do the gig for the same price since it was a last minute open date, AND she was a former co worker of mine. She said that was awesome, and was happy to book again. Now all of a sudden, asking for more money is "too much money" for another party? After she received services at discounted rates twice, AND the new price I am offering her isn't even our special rate we advertise today...it's still below that.

I booked my brother on the gig, and took ZERO as a commission last time. What incentive do I have to book the gig again, and take ZERO for booking it and handling the agreement? Really, NADA.

I understand a $215 increase 4 months after the last party booking seems nuts, but really...it's still under par for what the DJ companies in the area are asking for on a Saturday night in this area...YES, she can go on craigslist, and find DJs even cheaper than my discounted rate from 2011, but that's not the point. I want us to work with clients who value our service...not just book us because it's an easy company to book with and they know we are giving them a cheap price.

She could call up the agency I am affiliated with...their rates would easily be another $200 to $300 on top of what I offered for the date. A lot more if she requested a certain DJ from them.

 

[Proformance]

I booked my brother on the gig, and took ZERO as a commission last time. What incentive do I have to book the gig again, and take ZERO for booking it and handling the agreement? Really, NADA.

I understand a $215 increase 4 months after the last party booking seems nuts, but really...it's still under par for what the DJ companies in the area are asking for on a Saturday night in this area...YES, she can go on craigslist, and find DJs even cheaper than my discounted rate from 2011, but that's not the point. I want us to work with clients who value our service...not just book us because it's an easy company to book with and they know we are giving them a cheap price.

She could call up the agency I am affiliated with...their rates would easily be another $200 to $300 on top of what I offered for the date. A lot more if she requested a certain DJ from them.

All you're really saying is that you routinely under-price your DJ services. This is a crappy way to treat yourself, and a crappy way to represent your brother or anyone else who works for you. It's also a disservice to customers because they never know what to expect from you as your rates vary with no measurable rhyme or reason.

The problem here is not the client - it's your method of selling. Stop all this discount and special pricing you have going on. Just name the appropriate price and remain predictable so both your DJs and customers can rely on you having consistently appropriate quotes.

 

[Proformance]

Sorry guys. If you always give them the same price, you will never be able to raise your rates.

If you quote the right price the first time you can always grow your business with expansion of future quotes. These limits only exist in your own head.

 

[DJ Ricky B]

All you're really saying is that you routinely under-price your DJ services. This is a crappy way to treat yourself, and a crappy way to represent your brother or anyone else who works for you. It's also a disservice to customers because they never know what to expect from you as your rates vary with no rhyme or reason.

The problem here is not the client - it's your method of selling. Stop all this discount and special pricing you have going on. Just name the appropriate price and remain predictable so both your DJs and customers can rely on you having consistently appropriate quotes.

Exactly,

which is why I'm taking steps to get on track! I am very hopeful that by the end of 2016, I won't be booking any events period under $600. As long as another slump in the economy doesn't happen, I think I can manage. It's getting a bit confusing booking $1.300+ weddings, and still dealing with party clients wanting to pay $335.

Is it my fault I offered her a discounted rate because I worked with her back in 2011...Sure. However, clients can't expect to continue to pay the same discounted rates all the time, and at some point I just need to make it a point to move on from that pricing level all together.

If previous clients don't see the value in paying a higher fee, or just don't want to and want to pay old prices...I'll accept that. However, I must also accept it's time to move on, and lose their business if that's what needs to happen.

I did text with my brother. He is willing to do the party for the same old rate so he knows he is working for the night, nd he had fun deejaying for her last time. However, am I willing to book it, handle everything, and take zero again? That is the question. Also, since he is the only DJ left available, and we still have 6 weeks out, would I be leaving money on the table if I give him away at this far discounted rate, and losing out on potential income coming in from else where? That is another question I should evaluate.

 

[Proformance]

However, clients can't expect to continue to pay the same discounted rates all the time, and at some point I just need to make it a point to move on from that pricing level all together.

If previous clients don't see the value in paying a higher fee, or just don't want to and want to pay old prices...I'll accept that. However, I must also accept it's time to move on, and lose their business if that's what needs to happen.

You also should accept that you did a really poor job of quoting, pricing, and communicating with people about how you arrive at a given rate, as well as when, how, and why that rate might be different in another circumstance or date.

The problem is not with the customer's expectation - or any given number. The problem is the confusing and random nature of your approach. The price doesn't matter - how you arrive at it and how you treat people does. I still do $300 jobs where the circumstances make it attractive. The difference is that my communication and approach make it easy for the same customer to appreciate both the simple $300 DJ gig and something more quoted for several thousand.

 

[DJ TJ]

I did text with my brother. He is willing to do the party for the same old rate so he knows he is working for the night, nd he had fun deejaying for her last time. However, am I willing to book it, handle everything, and take zero again? That is the question. Also, since he is the only DJ left available, and we still have 6 weeks out, would I be leaving money on the table if I give him away at this far discounted rate, and losing out on potential income coming in from else where? That is another question I should evaluate.

With only 6 weeks to go, your odds of booking something now are getting exponentially slimmer by the day.
This is one of the few times I would be a fan of the "bird in hand" mentality.

How much money are you going to leave on the table if you don't book it at all?
And if your brother is willing to do it for the same old rate, assuming you are on a percentage split with him why would you not be making anything at all for handling the booking?

 

[Hank Davidson]

Hank's motto is "Affordable, but priceless" . He prides himself on being the cheapest, or one of the most affordable options in his market. That is not how I want us to be known as. I value all of my past clients, but if they won't pay rates more in line with what today's market is bearing and what DJs need to continue to run a stable business, then by all means I am willing to let them go with the cheapies out there still charging below $400 like DJs were doing 20 years ago.

Uh, most every business boasts low prices as a selling tool. More bang for your buck, equals more value.

However, I'm not trying to be anything but fair versus my cost of operation. That just so happens to be much lower than others. So, why not use that as a marketing tool? The simple answer here is that very few people would want or need to pay $600+ for a 4 hour Halloween bash at a standard venue.

I chime in on certain threads, not to say that you or others are too expensive or shouldn't set your prices the way you like, but to point out that you should STOP blaming people for not wanting or being able to pay your prices. These price threads are usually spawned because one of us is "put off" or insulted by the fact that they can't get what they want from a certain client base. Calling others "cheapies" or other derogatory terms only devalues you. Anyone thinking that posting threads like this is going to result in a bunch of "high fives" and "atta boys" is very mistaken.

Not every DJ falls into your determination of stable business needs and not every market bears the same rates.

I don't know any more about your business than you do of mine, but I have a pretty good feeling that this party didn't warrant what you needed to get. If so, maybe you should have just looked at it from their perspective and moved on. Instead, you made a rant (your definition). You said "Some clients just never want to pay more than they paid for a service one time.". That may be so, but if you want to be respected for what you value your service at, then you have to be willing to respect that not everyone is going to agree.

 

[ittigger]

Think of the services you purchase, such as a mechanic. If your mechanic gave you a discounted rate back in 2011, then honored the same as a favor in May, then recently gave you full price, how would you feel?

 

[DJ Ricky B]

Think of the services you purchase, such as a mechanic. If your mechanic gave you a discounted rate back in 2011, then honored the same as a favor in May, then recently gave you full price, how would you feel?

That actually happened to me...A shop I was using raised their rates by $44 per hour over. What was a $68 Synthetic Oil Change became a $88 oil change in a matter of months. They went from $64 per hour to $108 per hour in between the time I went there a few months earlier and that time. So it wasn't just a gradual increase like the dealers do. However now they are more in line with what the dealers charge.

I questioned the raise in rates, and they simply told me it was time to raise rates due to demand, and the fact that it had been over 2 years since their rates had been increased.

...Now when they offered to do front shocks on my Cobalt SS to the tune of $1176, I declined and got other quotes, which were lower...even the dealer was lower. However, I didn't have the job done as I didn't quite need it yet, and traded that car in any way.

That shop is just as busy as they were two years ago. People pay their rates even though they are higher priced than others.

I'm all for getting a deal myself. I search for the best price often, but certain services I will pay for.

I just had a professional land scaping company start cutting and trimming my grass. I just got tired of mowing the lawn after my back went out 4 weeks ago, and figure I will pay someone to do it. They quoted me $60 to do it every two weeks. I told others about it, and the comments I got was "oh that's high" "You can find someone for $30 to do it". I am sure I can find someone to do it for $30, but the land scaping company is doing a real nice job of trimming which is better than what joe schmoe will do for $30. I also feel that someone doing physical work like that, and using their own tools for the job should be adequately paid. $30 for a 2 hour job makes me feel like I'm paying minimum wage.

 

[Jas]

It's almost a law in marketing, but more of a psychological phenomenon. Once discounts are given most people will be less likely to pay full price for the same goods or services. If you've been giving discounts regularly it might be a bad business decision to stop. Clothing stores that stopped having sales (offering one low price) have gone out of business in the past. Penney's tried this a couple of years ago, but not for long.

I'll agree that the price jump from May to October was perceived as too much by this client.

 

[Ron]

I agree with some of the others, it is not so much about raising your rates, it's about the time frame. a $200+ jump in 4 months is steep. You also seem to be comparing your business to other types of business their model does not apply to you. A DJ business is not a sandwich shop, not a car dealership, and definitely not Wedding Wire (please don't adopt their business practices). These business have tons more clients and perspective clients than a mobile DJ Service.
Here is a similar story, about 5 years I charged a local organization only $350 for a 4 hour Christmas party. The next 2 years I gave them the same rate, simply because they were repeat customers. At this time I was getting a minimum of $500 for new Christmas Parties. 2 years ago when they contacted me I explained to them that I had increased my rates, But since they were repeat customers and I valued their business ans they were very pleased with my services we came to the agreement that for their next event the total would be $425 and the following year (this year) it would be $500. I also told them I would add dance floor lighting at no additional charge (it takes about 5 -10 more minuted to setup). I doubt I will go up on them again for years to come event if my rates go up for new clients.