Should I offer budget entertainment?

[Mark Beecher]

Sorry to post this on another board (I try to never do that) but I need input.

I try to get $800-$900+ for weddings, upselling (ceremony, extra sound system etc) may result in a more $.
I also sub contract for several Djs who all like to work, and on their own will sell their service for much less. I have come to accept this but not without a fight. The fact is there are many Dj companies out there selling weddings to price conscience brides for $400-$500.
Theses are clients who usually (but not always) are working with VERY low budgets.
I want a piece of that action. I feel like I have left A LOT of money on the table by not offering a service to these potential clients. My idea is to offer a "no-frills" service. No in person meetings, no lights, Dj is assigned 1 month prior to date. Forms are e-mailed, etc. This rate would be $500.

I rarely have ALL my djs out every weekend and most would all be happy to do a bare bones (but good quality) show for $400 rather than stay home on a Saturday making $0. I would take $100.
They would also get to keep any overtime at $50.00 per 1/2 hr.
I have worked out staffing issues with my djs holding a budget date tentatively. If they get a better offer, or if I get a better offer for them, they would be free to accept it as long as I had another dj with that date open. They would be locked into the date 30 days prior. On prime dates, this package would not be offered.
Clients having their wedding at major pricey banquet facilities would be "directed" away from this offer. This is geared for clients spending less than $5000 on their entire wedding.
I do not want to create a separate company. I also do not want to taint my reputation as a high quality company.
I actually sold this service yesterday to a woman getting married for the third time having a small party at a nice clubhouse. She was thrilled with the package. I doubt I would be doing any of these events myself.
I don't think my high end clients would touch the budget package with a 10 foot pole. Most of those are referals and they want me. They would not want to have the dj assigned 30 prior to their wedding.

Any thoughts?

[DJMC]

Did you read Steve Rothkin's article ("How Much Is Enough?") in the latest issue of the N.A.M.E. "National Entertainer" Magazine?

In the article, he explains how he divided his packages between the "Full-Service" and "Economy" levels. Good reading!

If I were to offer Budget DJ Packages, I'd start a separate company with a different phone number. That's just my own take on this issue.
Your mileage may vary!

[John Allo]

OMG, Hell just froze over, I agree with Matt Cohen. [img]style_emoticons/<#EMO_DIR#>/biggrin.gif[/img]

It would be much easier to have 2 totally separate identities than to have both inside one company.

That's just my take.

[DJMC]

Originally posted by John Allo@Jan 25 2005, 07:17 AM
OMG, Hell just froze over

It did........in a place called Boston! (LOL)

Hope you were able to find a place to put all that snow!!! [img]style_emoticons/<#EMO_DIR#>/laugh.gif[/img]

[Jim Casey]

Originally posted by Mark Beecher@Jan 25 2005, 10:28 AM
Sorry to post this on another board (I try to never do that) but I need input.

I try to get $800-$900+ for weddings, upselling (ceremony, extra sound system etc) may result in a more $.
I also sub contract for several Djs who all like to work, and on their own will sell their service for much less. I have come to accept this but not without a fight. The fact is there are many Dj companies out there selling weddings to price conscience brides for $400-$500.
Theses are clients who usually (but not always) are working with VERY low budgets.
I want a piece of that action. I feel like I have left A LOT of money on the table by not offering a service to these potential clients. My idea is to offer a "no-frills" service. No in person meetings, no lights, Dj is assigned 1 month prior to date. Forms are e-mailed, etc. This rate would be $500.

I rarely have ALL my djs out every weekend and most would all be happy to do a bare bones (but good quality) show for $400 rather than stay home on a Saturday making $0. I would take $100.
They would also get to keep any overtime at $50.00 per 1/2 hr.
I have worked out staffing issues with my djs holding a budget date tentatively. If they get a better offer, or if I get a better offer for them, they would be free to accept it as long as I had another dj with that date open. They would be locked into the date 30 days prior. On prime dates, this package would not be offered.
Clients having their wedding at major pricey banquet facilities would be "directed" away from this offer. This is geared for clients spending less than $5000 on their entire wedding.
I do not want to create a separate company. I also do not want to taint my reputation as a high quality company.
I actually sold this service yesterday to a woman getting married for the third time having a small party at a nice clubhouse. She was thrilled with the package. I doubt I would be doing any of these events myself.
I don't think my high end clients would touch the budget package with a 10 foot pole. Most of those are referals and they want me. They would not want to have the dj assigned 30 prior to their wedding.

Any thoughts?

Mark...

Never feel sorry for asking the same question on multiple boards...

For many members, this is the only place they visit or one of only two.

What I did to please some clients was to offer a 3 hour "Budget" package to give brides a chance at discounted services while still making it worth my while.

Making $100 on an odd Saturday may not be all its cracked up to be...after taxes, gas, the works, they may make about $40-50 total.

Is that worth lugging the gear out for? I'm not sure, that would be a personal choice.

Plus...do you want to be known as they guy(s) they can talk down price wise?

[Mark Beecher]

Jim, I would make $100 for selling the gig and typing up the paperwork.
The Dj would make at least $400.00 doing it

[Jim Casey]

Whoops..

I think iread that wrong...Same questions apply, but $400 0certainly sounds palatable off-season.

i guess it would be whatever your (or their) business plan would be.

I think making it a seperate site might make it confusing for a client, especially if they got two different price quotes for the same event from potentially the same person.

[Professor Jam]

True Story:

One year I showed up at a bridal show to find an individual who always said he brought in “top” dollar helping set up a booth of a new company displaying at the show... He stated, when asked, he was helping a friend get his company off the ground and setting up the booth for him.....

The hidden issue was it was “his” company and he wanted the best of both worlds, to tap into the deep pockets of individuals who could afford it, but he didn’t want to lose the low paying clients as well. The wedding industry is a close nit one and other vendors had already spilt the beans on him to other DJs…. When we told him at the show, after he had lied, we all knew he was the real owner, went “ballistic”….

He kept telling everyone he only goes out to the higher paying gigs, In reality, if he did not get a top paying gig on a date he would fill it with cheaper events… The issue was why clients should book his higher paying service when they can get the same individuals via his cheaper service… He went bankrupt a year or so later…

What would be my recommendation… Keep one company – Switch to a package program and sell the service ali-cart…

Good Luck & I wish you the very best!

[Mark Beecher]

I am embarrassed to say that my guys (who are EXCELLENT Djs) usually sell their service on their own for $500. I have TRIED to get them to raise their rates. They see that I CONSISTENTLY get them MUCH higher rates than $500, I have one guy that does proms for free :confuzzed He's older and doesn't get many...
Last year I wanted to quit subcontracting altogether because I was just sick at the rate they sold themselves and I figured they were harming MY industry. Well, I missed the money when I trimmed back subbing them. I figure I might as well pimp them if they don't mind.
For $500.00 I do not want to offer the same level of service or expectations as my regular packages, and I'm hoping some clients will be enticed by the $500 rate then see how much more they can get for only a few hundred dollars more. If not, a $100 will buy groceries for the week

[djdonny]

Mark,

I'd have only one suggestion. Considering the greater risk to your reputation with these low-prep events, I'd make sure I took more than 20%. You could pay the DJs $400 and charge a reasonable $600 -- that's 33% for you. I think it's fair to make 20-25% on the high-end events, but if the DJs are willing to go out for $400, I wouldn't charge less than $600.

How much do your DJs make for a job you book for them at $800 or $1000?