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Here is an article written for bridal publications which can be used with local bridal books/flyers/publications with our consent as long as the credit line reads "Published by permission from the Disc Jockey News and Dude Walker"
A thread on a DJ chat board brought out the question about giving discounts to get through these tough economic times. Is it good or is it a Bad Idea?
This is a real tough question to answer. It isn't as Black & White as some may think. If you know me I have been a steady "Raise Your Rates" person for many years and I took a lot of heat for it...until they actually did and found it would work.
This economic down turn really started in the winter of 2007, then in the summer and fall of 2008 things really took a downfall. Different areas are feeling it differently.
It is impacting all of us in America and around the world and it is predicted to only get worse before it even thinks about getting better.
Everyday unemployment hits a new high, factories are closing, and people are losing their homes and their jobs.
What this means is that everyone is spending less, holding onto their cash and needing to save where ever they can. Fewer people are having events where they need entertainment.
Every store, every car dealer every business is having deep-deep discounts in order to move products. Is this the best idea? What they are attempting to do is sell at or slightly above costs to be able to bring in some sort of income to cover the bills. If they didn’t the bills would still arrive and need to be paid and the product would just sit and get outdated.
Yes the price of things like food has risen, but that was because of the rise in fuels to get the food from point “A” to point “B” but if you look around the prices are dropping in hopes of moving it and staying above water and not drowning.
I recently had to go to a car mechanic and they actually did give me a “discount” because they didn’t want to lose my business to a mechanic a few miles away. The economy is hurting their business as well.
Doctors really can’t lower their rates because of all the medical red tape and insurance and so forth, but in hard economic times people will put off going to a doctor because they can’t afford it. This could mean life or death, now compare that importance to the importance of a DJ at a wedding. Not even close!
What I am trying to say for our industry, and this really KILLS ME is that you may have to begin to offer discount rates in order to keep your business going.
The threshold of Bridal couples expenditures has dropped. Even before this downturn we (DJs) were thought of as nothing more than “music” and shouldn’t be paid a respectable rate. Now after the downturn things are even worse.
The higher your rates are now, the more you may need to discount. Those getting hit the hardest are those charging $1000 and up for an event (wedding) $500 to $1000 is feeling it slightly less and those under $500 are feeling the pressure the least. Those under $300 even less. (their worries is with quality issues)
Yes there are still a few people out there who will be willing to pay the higher rates for a quality entertainer but those numbers are dropping everyday as the economy hits harder.
When I say discounts, I don’t mean “SLASH AND BURN” discounts, I mean simply offering a sale that will entice clients but still give you the profit that you need to survive. Maybe offer more “Value” with your packages or free or discounted “add ons”
For those of you who have a day job and do not count on your DJ service to pay the bills your discount would be much less than those who DJ as a full time business and are single operator services.
Multi-operational services typically (not always) charge a slightly lower rate than the average single op. They are feeling the downturn as much as any of us. Even they may need to lower their rates slightly to help attract employment to them.
Recently I read that a very well known and probably one of the best Mutli-DJ services and most successful DJ services in the U.S. has been having several corporate events cancel on him. Why? Most likely the companies are feeling a pinch and can’t afford to hire entertainment. Would a slightly lower rate help him with this, maybe-maybe not but he is now also feeling the cash flow problem and he’s the best.
You don’t want to “Give Away” your service but you may need to find something that will bring the fewer numbers of events being held your way.
You don’t want to start or be a part of a “bidding war” but you may need to find a comfortable lower rate in order to make the bills.
If or when this economy begins to pick up you should also do the same with your rates. As things begin to ease, raise your rates so that when this recession is over you’re back to where you need to be and then some. You should expect this recession to last at least through 2010 depending on when or if another major financial situation should hit or when the Presidents economic stimulus plan begins to actually work.
Simple business ideas that may or may not work for you.
Quote: "Which makes me wonder, If the economy is so bad and your financial status is poor - why get married at all?"
Marriage isn't about money, it's about love.