How much do I need to charge...

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Dude Walker

New DJ
Feb 4, 2007
334
0
58
Fargo, ND
How much do I need to charge...

Try this for fun or seriously...your choice.

Imagine that you have NO OUTSIDE REVENUE resources and you need to support a family.
 

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~ {Moved, per author's request} Grow Your Business ---> Big Show.~
 
(sarcasim on)

Teacher.....

My business model has me with a taxable income of a half a million dollars.

My staff is earning salaries higher than national average for my model with intent to profitshare.

I am projecting an anticipated marketshare of 40% in 8 years...

And my target price needed is substantially below "profesional rate"...

Somebody is lying to me...

and it's not the formula, now is it?

(sarasim off)
 
You need to take in at least your market average, and then multiply by the number of gigs to reach an income level suitable for your needs.

Then you need to get out and market to all possibles in your area so that you can do more than a once a week gig.

Or write a book, sell a how to DVD, or sell paintings.
 
It depends on how much you are willing to work.
Some DJs think 1 wedding a week should be enough to support you....

Oh...what Steve said.
 
For the record (in case any one is taking notes) the market average is only one small consideration of what you can charge. The market average are pretty much a bunch of dip wads.
 
For some reason, Excel decided to take a crapper on my laptop and I still haven't set up my desktop system. So I don't get the pleasure of opening that file...

In the non-DJ circles I am involved with (mostly artists and craftpersons), the general consensus is that you need to charge enough so that you earn a minimum of three times your monthly rent or mortgage amount. Ideally, you should earn four times that amount. The amount you need to charge is a base minimum and of course, if your talent and demand can get you more, you should get more!

I've never understood why this is so complicated with DJs. :)
 
Dude : Perhaps a reverse formula would be more enlightening?

What does one charge now per event?

How many events are done annually?

Then list total time needed per event from the initial contact through completion, multiplying that number times the annual event figure.

Total of every expense involved to run the business and subtract it from annual income and call this figure profit.

Take the profit, divide by the annual hours worked, and see how much per hour is actually earned. Compare that per hour number against other job/employment wage opportunities.

Is this a viable tool or is something missing? Would an example help clarify this?
 
Mark Beecher said:
For the record (in case any one is taking notes) the market average is only one small consideration of what you can charge. The market average are pretty much a bunch of dip wads.
Click to expand...

We need a BRAVO!! button. Not only is it a small consideration, it really isn't one at all unless what you are selling and delivering is average. I refuse to lower my prices to 'average'. (I also refuse to make our system or service average)
 
Pamela said:
For some reason, Excel decided to take a crapper on my laptop and I still haven't set up my desktop system. So I don't get the pleasure of opening that file...

In the non-DJ circles I am involved with (mostly artists and craftpersons), the general consensus is that you need to charge enough so that you earn a minimum of three times your monthly rent or mortgage amount. Ideally, you should earn four times that amount.
Click to expand...

Pam, it depends really because four times my mortgage is still $0 But I see your point however I don't think it is a matter of charging enough, it is a matter of making enough. The problem with many in this business is they are under the false impression that they need to charge $XXXX to make a living. What they don't really consider is that they can charge $XXX invest their time into actually doing XXX number of gigs and make much more money.
 
And what if you are lazy and don't want to work hard enough to make a living as a DJ..hmmmmm?

I'm not in that category but my category is not too far away.....

I just did a corporate event for $2,800.00 I did not MAKE 1/2 that. I don't ever want to work that hard for that little again. btw, there was not enough budget left over for 100 balloons.

note, after checking, I did make $1,600.00 (and a bit more) and got to keep some extra materials that were used...Still not enough.

Anyone want to buy some used remote control hummers slightly banged up with 6 high capacity batteries?
 
Mark has a good point.

Those who are making 6-figure incomes as a Disc Jockey......are spinning a LOT of plates.

Either they sell DVDs, or they give seminars, or they have gone multi-op. Or maybe they're building additional revenue streams (photography, video projection, clubs, schools, giveaways, whatever).

I would have to charge THREE TIMES my present rates, to support our family, if my wife wasn't bringing home 90k income.

Of course, if I charged 3x.....I'd have to work 3x as hard to book the events.

So there is what you call POINT OF DIMINISHING RETURNS. You can hobnob with wedding invitation printers, go to chamber mixers, do bridal fairs, spend maybe 20 hours a week on generating business leads.....Of course it will produce returns but at what cost? (time away from family & household duties)

HOW MUCH DO I NEED TO CHARGE? it comes down to what you think is a fair, an amount I'd be willing to pay if I was in the shoes of my customers....I've calculated a rate of $115 per hour of coverage (coverage= setup + teardown + playing time + consultation).

But if I was the sole breadwinner....we'd need to boost the billable hour to around $200 or MORE.
 
Why would anyone LIMIT themselves as a self employed person to JUST being a dj when you have the time, talent and equipment to do so much more?

By the way I no longer have a problem with part time djs (or djs not pursuing FT status) after realizing that MOST people (in EVERY profession) are not comfortable with being self employed. Being a DJ, there are VERY few options available other than being self employed and full time.

That said, I tend to put more weight into what a FT dj says because their goals are the same as mine.
However I am realizing that no two FT Djs achieve success in the same way...There is no magic formula.
 
DJMC :
Those who are making 6-figure incomes as a Disc Jockey......are spinning a LOT of plates. Either they sell DVDs, or they give seminars, or they have gone multi-op. Or maybe they're building additional revenue streams (photography, video projection, clubs, schools, giveaways, whatever).
Click to expand...
There are exceptions to this, not hordes of them, but some. The small number of exceptions diminishes further in terms of maintaining it over a career length time frame.

Mark: Oh boy, now you've gone and done it! ;>) !
 
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