Disc Jockey News

In this day of mass media and world wide information sharing, is having a web site a "Must Have?" when it comes to advertising your DJ Business.

My opinion would be a definite YES!

When it comes to advertising and letting potential clients know who you are, what you do and how to hire your services, the easiest, cheapest and most efficient way is with a web site.

Advertising in the yellow pages, news papers, signs and flyers are a thing of the past. Much like the 8-track tape these means of spending your advertising budget is long gone and over with.

The majority of clients looking for a DJ will automatically turn on their computer and begin the google search for their Entertainer.

With today’s sophisticated, educated and completely computer orientated society a DJ without a web site just can not compete with a DJ whom has an informative, beautifully designed and easy to navigate web site.

When I see a listing for a DJ on places like craigslist and they don’t have a web site, I automatically think unprofessional, inexperienced, low quality person trying to make a few beer bucks.

Of course this isn’t always the exact reasoning behind every DJ not having a web presence, but what would the average Joe “Bride & Groom” think when they see this?

In the long run after the initial costs of the start up for the site, the monthly rate is so much less then just one ad or one paid listing in any phone book, newspaper or flyer.

A well designed and maintained web site can be all the advertising you may ever need.

Jeff Richards: Party Time Productions

http://www.PartyTimeProductions.biz

Posted by Jeff Richards at 11:28 AM | Permalink

Tonight I heard a story of a DJ who just booked a Wedding for 2011. You're just not going to believe this....

First of all let me say, good for this guy, he has a client who wants his service three years into the future. Nice Work!

The problem I have is that he is charging them the same price for the wedding in 2011 as he is charging for today in 2008 which in reality is probably the same price he has been charging since 2007 and possibly as far back as 2006.

This would mean that when he performs this Wedding he will not have had a price increase in as many as five years.

So how would you have handled this Bridal couple’s service request?

A: Would you have charged them the same price as you are currently.

B: Would you have added a rate increase to estimate what you will be charging three years from now.

C: Would you have said, call me back when you get within 6 to12 months of the wedding date?

For myself, I would have selected option C. The reason is, you just don’t know what you will be doing three years from now. If you take their deposit then close the business for what ever reason then you are still ethically obligated to return that money because you went out of business.

If they insisted on having my service then I would have attempted to estimate what my rates would be in 2011 by adding a 3 to 5 percent raise each year for the three years. This could still be a problem if you under estimate the rate and you end up doing the wedding for little to no profit margin.

With the sudden spikes in gas prices you never know what we will be paying for a gallon of gas in three years.

The future is just so uncertain that to book an event that far into the future can be very risky.

I would defiantly have a “No refund” policy enforced because most likely this wedding isn’t actually going to take place.

Jeff Richards: Party Time Productions

http://www.PartyTimeProductions.biz

Posted by Jeff Richards at 12:00 AM | Permalink

I opened my Best Buy Sunday ad to see that they have a half page dedicated to their entering the DJ industry.

The title of the half page ad is:

"Cue, Mix and Scratch your Music. Our staff of Professional Musicians will help you unleash your inner DJ."

Then they have for sale in this ad:

Yamaha Stedepas 300 Portable PA System, 8 Channel powered mixer and cables. $549.99
Shure SM58 Vocal Microphones. $99.99
Sennheiser HD280 Pro Closed-back Headphones. $99.99
Numark Battle Pak DJ System. $399.99

This is Best Buys attempt to get a portion of the market away from the Guitar Center who also caters to DJs.

Two of the Best Buy stores in the cities area now have a complete section of Musical Instruments and DJ equipment available.

It seems to me that Best Buy is just trying hard to get into a field that they don't know enough about. Very few DJs these days are still using "turntables" and have moved into compact discs, MP3 players or a computer system to handle their musical needs.

My question to Best Buy would be: What do "Professional Musicians" know about being a Disc Jockey?...and how can they help anyone "Unleash your inner DJ" ?

This equipment is fine for a high school kid wanting to have a little fun in their basement but not the best in quality for those who want to do this as a profession.

Unfortunately I can see some young people getting this equipment and without any training, experience or talents/skills they will then post on places like Craigslist that they are “Professional” Disc Jockeys and offer Wedding Receptions for a few hundred dollars.

Jeff Richards: Party Time Productions

http://www.PartyTimeProductions.biz

So here's an update on the battle between Best Buy and the Guitar Center.

Guitar Center is now running commercials appealing to musicians stating that "Musical Instruments" is what they do and have been for since opening their doors so many years ago.

You can't buy a fax machine, or dish washer at Guitar centers, just Musical Instruments from actual trained musicians.

If you hear the commercial it is a well made, a well defining commercial for Guitar Center trying to educate a Musician "Wanna be" not to fall for their "Big Name - Low Price" ads when Guitar Center can meet and beat any of Best Buys prices and give you the service that you really need.

I'm not a musician but it makes perfect sense to me. If I want a phone I go to Best Buy but if I want a Guitar or other band equipment the place to go would be The Guitar Center.

Posted by Jeff Richards at 10:40 AM | Permalink

A DJ called "DJ Deviant" goes on the People's Court in order to get paid for a party that he was stiffed by a Party Planner.

Today I turned on the People's Court a few seconds late to miss out on what the DJs real name and his company's name is but he was there suing a Party Planner who he claims sub-contracted him out for a five hour DJ service for a birthday party for a four year old child.

The party planner also sub contracted out a guy to bring in two of those "bounce" houses and another contractor to bring in Cotton Candy for the kids.

The guy with the "bounce" houses showed up one hour late then took another half hour to set up. He was to set up inside the location but the "Bounce" houses where to big to get even one set up inside. He then set them up out side in the rain and left them unattended.

The cotton candy guy shows up just moments before the party was to end and did his thing.

The DJ was the only person who showed up on time, did his job right and made the mother happy with his work.

Unfortunately he was also the only one NOT TO BE PAID by the party planner woman.

The party planner claimed that he is an independent contractor who met with the mom separately and negotiated his own price and there for should have colleted his fee at the end of the party.

The mother paid the party planner $1400 up front with a balance of $700 due the day of the event. The party planner asked the DJ to collect the remaining $700 for her but when he tried the mom gave him and his "Crew" a $200 tip for his good work, but refused to pay the additional $700 because she was so unhappy with the "Bounce" house guy and the cotton candy guy.

The judge took one look at the party planner's contract that actually states there will be the five hours of DJ work, the "Bounce" house guy and a cotton candy vendor for a total price of $2100.

Since the mom paid the $1400 up front that left $700 left to be paid. The DJ stated he was to be paid $675.00 for the event but didn't see a dime.

The party planner continued to argue that the DJ was independent and not sub contracted by her, but the judge yells at her that's not what her contract reads. It reads that she is including the DJ work along with the other two vendors for a total of $2100.

In the end the Party Planner had to pay the DJ his $675.00 which means she still made a twenty five dollar commission off the DJ.

It's nice to see a DJ finally win a case on a TV court room show!!!

Jeff Richards: Party Time Productions

http://www.PartyTimeProductions.biz

On a personal note, is the name "DJ Deviant" a good name to use when performing a “Children’s” party?

He didn’t get into details about what his services all involved, but if he is like most DJs at a “kids” party (four year olds) he probably had handouts, giveaways, and a large amount of kids’ items that was paid for from his fee for the event. ($50.00)

Include the price of gas, of which I’m assuming he and his crew drove in one vehicle together. Cost for fuel of the round trip to the event and also including the meeting with the mom previously. ($40.00)

He had a “crew” which I presumed help set up/tear down the gear and helped to keep the kids entertained for the five hours. He didn’t say much about his “Crew” as he called them, but let’s say he had two friends who agreed to work the day for $50.00 each. ($100.00)

When you add the set up/tear down and travel time – let’s call the day for him and his “crew” an even six hours long. He was only paid $675.00 subtracting the $190.00 for expenses that leaves him with a six hour event for $485.00 or ($80.00 per hour)

Since he did not get paid as he should, he had to take time off from his “day job” to file his report then also travel to the city of which The People’s Court is filmed. (Two day minimum)

I’m sure the TV show handles the costs of air and hotel but there had to be some extra expense involved with this trip. Time off (lost) from work, food & drink while traveling to another state and the miscellaneous items one buys while on a trip.

Was it worth it for him to work this event for so little and then have to spend time in court to get this Party Planner to pay up?

Posted by Jeff Richards at 12:23 PM | Permalink

Have you ever noticed that when one gas company goes up so do all the others around, and when it goes down the same thing happens. The same thing happens in the DJ industry.

On one corner in many neighborhoods there are four gas stations. Each one is a different company who get their gas from different locations on different days. Three of the stations are big time corporate companies and one is a "Mom & Pop" small town style business.

When the biggest of the four companies decided to raise their prices they go out and without any warning can jack their rates up a few cents to over 30 cents per gallon at a time. Then if you stand back and watch - with in a few hours the other stations begin to do the exact same. Typically the "Mom & Pop" station will hold off the longest trying to bring in those who are so cheap that they would wait in line for ten to thirty minutes just to try and save a few pennies.

Eventually the "Mom & Pop" station will realize that they may be getting the volume of people but the low rate is eating away at their bottom line profit and they too will raise their rates but still undercut the competitors.

Because they sold in Volume, their Hugh gas tank is now empty (or close to it) when compared to the other gas stations. This means that they will need to buy another tanker truck of gas at the oil companies new higher price rate before any of the other three stations do.

So they pay up front when the tanker truck comes to refill their underground tank. Because the oil rate went up, so did the new gas they are receiving. They must now pay for the higher priced gas with the small profits (if any) from all the gas they sold at the lower rate.

Typically what then happens is the higher priced big time gas station decides to lower their rates by a few cents and everyone including the "Mom & Pop" station will follow.

Now the "Mom & Pop" station is selling gas that they paid a higher premium price for, from profits of gas they sold for less and now they are losing money on the new tank of gas because they have to meet and beat the three major competitor’s lower rates. It's all a losing game for the little "Mom & Pop" station.

No matter where you go their will always be that ONE last gas station that will under cut the others by a few pennies to try and snag the clients away from the major league players. Unfortunately many of the times when playing this "lowest price" game I have seen that many businesses go under and close the doors.

We have one location near by that changes names and owners every year or two because they try to always undercut the competition. They just can not figure out that the lowest price, no matter how good the service is always a losing game.

Let’s now compare the Gas Station "Price Wars" to the DJ industry "Price Wars".

Over the last five to ten years the DJ industry has slowly began to raise their rates to a respectable, profitable and good business sense rate. Those who were once charging under five hundred dollars are now topping the one to two thousand dollar rates for a wedding.

Much like the gas stations, when one raises their rates the others follows behind.

Slowly the "Mom & Pop" DJ's have followed behind raising their rates slightly but still undercutting the major players by a few hundred to several hundred dollars.

Then of course there are still those who think they can charge pennies on the dollar when compared to the competition and eventually they either get burnt out and/or can not afford to stay in business and end up disappearing from the industry.

Much like the Gas stations, many DJs check around and then charge a rate similar or slightly lower then the competitors.

Again, like the Gas Stations, one DJ drops their rates, the others will follow behind. It's a domino effect.

Lately because of the recession DJs are dropping their rates to a point that some are charging less for a complete wedding day then I and many others charge for just one or two hours of work.

Sure, I know the importance of supply and demand and the tight budgets of Bridal couples during a recession. I have recently lowered my rates to try and bring in work for my open dates, but even with the lower rates I still collect so much more then the "average" DJ in my area.

The unfortunate part is that DJs who are already low in their rates have decided to go even lower to “beat out” the competition like myself. They weren’t making a profit before and now they will make even less.

Right now we are in a very tight recession with everyone pinching their pennies to pay the bills but yet does the price of gas go down?

No! It just continues to go higher and higher.

Why? Because the gas industry knows that everyone needs fuel and no matter how hard they try to cut back, there's just no living without it. They also know even though they are selling less fuel because at the high rates, they are still making HUGE profits because the fuel they are selling is for up to two times the amount it was just one year ago. Selling less gas but making bigger profits!

The same could be said with the DJ industry. If someone is getting married they are going to need entertainment. If like the Gas Stations we DJs had a price that was similar in a base rate but then was increased according to talent, skills, experience and business expenses it would give the Brides & Grooms a clearer picture of who we are and the importance of what we do for them.

Instead of choosing an entertainer based on who has the LOWEST rates, they would decide on their entertainer by their qualifications, talents, personality and quality of the business.

At a higher, respectable, profitable business sense rate, you will lose some of the typical business to those who insist on working for nothing, but in the long run you will be making more money on those events that you do perform.

Work LESS - make MORE money......what a concept.

Jeff Richards: Party Time Productions

http://www.PartyTimeProductions.biz

UPDATE:5/21/08

Today the news announced that the price of a barrel of oil has risen 400% just since George W. Bush has taken office. Not bad for an OIL MAN!

Has your rates increased 400% in eight years? No.
Has it increased even 40% No.
What about 4% No.

Think about this, the average American Worker receives a 2% to 4 % raise each year for just showing up to work. Many get an even bigger raise when they are productive and do a great job.

What's you excuse for not raising your rates?

Posted by Jeff Richards at 07:41 AM | Permalink

Have you seen the commercials on TV where major businesses are fighting the PRICE WARS to keep the business that they already have?

Four of the biggest fast food businesses in the U.S. are already feeling the pinch of the tough economy so someone in sales thought to combat the slow sales they will GIVE AWAY their products in hopes it will get the buyer to continue to patronize their business.

It started with Domino’s pizza selling one topping pizzas for five dollars each if you buy three or more at a time. The next thing you know Pizza Hut jumped on the band wagon and started also selling their pizzas for five dollars but with a twist. They use the term “At any time, all the time” and suggesting that with domino's you have to buy before certain hours and curtain days.

To rebel against the not 100% accurate misinformation Domino's then LOWERED the rate to only Four dollars per single topping pizza.

Now if you were to take the costs of the ingredients to make the pizza, the salaries of the employees, the rent and utilities of the location, the gas used to deliver the pizza and the extremely high expense of the TV advertising, domino's is actually losing money at that low, low rate.

The PRICE WARS has also affected the fast food sandwich business. It started with SUBWAY offering foot long sandwiches for only five dollars. This saves a customer anywhere form one dollar to approximately a dollar and a half over their regular priced sandwich. It didn’t take long before Quizno’s then offered their sandwiches for five dollars. Since they don’t have “Foot Long” they offset this by claiming that they have “More Meat” in their sandwiches.

The real problem with these cheap incentives for food restaurants is that it doesn’t work. They are loosing money in order to try and hang onto customers that they already have. Case in point: I don’t care how cheap Pizza Hut or Quizno’s offer their food; I don’t like their menu and do not eat there. I am a loyal customer to SUBWAY (I bring a sandwich or two to every event I perform and eat it while I’m setting up) When I’m at home I prefer the taste of Domino’s over Pizza Hut and will always purchase one over the other. This is how most people are, loyal to a brand or flavor that pleases them.

Giving away their food as a way to tempt a person over to their business for the most part just won’t work. Instead they are losing money and not bringing in enough new business to offset the profit loss.

I see now that Disc Jockeys are also feeling the PRICE WARS and dropping their rates in order to bring in business. Is this a good idea? For some yes, for others it could mean bankruptcy.

Where’s the difference? If you’re already charging only a few hundred dollars (under $700) for an event like a wedding and then you drop your rates even more, this could lead to major cash flow problems down the road. But if you’re charging over a grand for a wedding and lower it a little then this could be a smart business plan.

Typically I am one to promote the “Getting What Your Worth” idea and charging a respectable rate but the times are getting tough and will continue to be rough for some time in the future so if you’re like myself and charging two to three times the “average” rate in your area and business is really slowing down then the only solution is to try and bring in a few more events by lowing your rates just enough to bring in the customers.

Do what it takes to keep your business running, just don't GIVE IT AWAY and lose money in the deal.

Jeff Richards: Party Time Productions

http://www.PartyTimeProductions.biz

UPDATE 6/13/08

If you haven't seen this yet, Dominos is now also offering HOT SUB sandwiches as part of their business.

They have decided to get into the sandwich business and take a portion of the money by offering their sandwich at only $4.99 and the best thing, they deliver!

Watch out Subway, Quiznos and Jimmy Johns!

In a struggling economy businesses like Dominos are trying to diversify in order to bring in more money. This can work if the product is superior to the competition but the majority of the time this endeavor seldom works. (Remember: Chocolate Fudge Brownie? The New Coke? The Edsel?)

In the last few years DJs who are struggling have also decided to diversify by offering other options like Video Screens, Video Taping, Up Lighting and Limousine Services.

For some this has added more money and a lot more work but with the sudden increases in gasoline, those whom offered a Limousine Service are feeling an even bigger pinch.

Posted by Jeff Richards at 11:16 AM | Permalink