This is a continuation from another thread...
<div class='quotetop'>QUOTE</div><div class='quotemain'>QUOTE:
I will only offer what I do at a price I feel I am worth.
I'm not sure if that's the message Mark intends with regards the worth movement (I've never heard him), but I'm guessing he'd mean that you should improve your product so as to be able to increase what your CLIENTS believe you're worth (big difference in my mind).
Successful businesses don't price their products at what THEY feel they are worth, but by calculating a price that they feel will bring in the greatest profit. They compare their product to others in their market and try to calculate, at each price interval, how many products they think they can sell, subtract costs (including time), and estimate a profit. Then they can nudge the prices and see how the market reacts -- do I make more by lowering the price or by raising it? by improving the product's ingredients or by using cheaper materials?
Too many big-ego DJs have taken the worth movement to mean charge what THEY think they are worth, and have overpriced themselves out of business. A better question is to consider how much the PUBLIC thinks you are worth, so as to gauge how to best price yourself to make the most profit in your market.
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QUOTE:
Too many big-ego DJs have taken the worth movement to mean charge what THEY think they are worth, and have overpriced themselves out of business.
A rather bold statement to be made that begs corroboration. Knowing many of the national "Worthers", some have gone on to new businesses, some have established new parallel ventures, but none have priced themselves into employment to my knowledge.
Could you name please one? Two? Any?
What was their price point at the time of their demise? Or, was it their product value versus fee structure that was faulty? Or was it their deficiency in business ownership?
QUOTE:
I'm not sure if that's the message Mark intends with regards the worth movement (I've never heard him), but I'm guessing he'd mean that you should improve your product so as to be able to increase what your CLIENTS believe you're worth (big difference in my mind).
If you've never heard him, how do you know what his intent is (or was)?
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Cap,
You're missing my point (and getting a little too quick on the defensive). I'm not referring to any particular DJs, but simply the effect that all this discussion about raising prices because of one's self-worth has had on the industry. If DJs are truly worth what they believe they are, in the eyes of their MARKET, then they should certainly go ahead and charge more. Jim here's a good example -- he raised his prices and made more money.
However, just from chatting with other DJs on forums, a number of DJs who may have thought they were worth more than their market can bear are often complaining that lower-priced DJs are taking all their business and their annual number of gigs have fallen. Maybe they should lower their prices slightly in order to make the amount of annual profit they want. But all this negative talk about low-ballers have scared them into thinking they're selling out the industry by pricing themselves appropriately for their level of skill and expertise.
As I mentioned, I don't know what Mark's intent was. Maybe he didn't mean what I guessed he did. Here's my philosophy then (and if it matches Mark's, so be it, I was just giving hime credit in case credit was due):
Revenue = gigs x price. If you raise your prices simply because others in the industry are saying that DJs are inherently "worth" it, and find your revenue drops like a rock because you're not booking gigs, it's OK to bring your prices back down. In the opinion of your market, you may not yet be worth what you think you're worth, or what others are telling you you're worth.
(Of course, I realize that if revenue just drops a little but you're doing a lot less gigs, this may be a gain for your business, but I'm just simplifying the discussion by leaving out the small nuances.)
On the other hand, if you truly can convince potential CLIENTS in your market that you are "worth" a higher price, and by raising your prices find that the market can support you, then more power to you! How can this be done? You can improve your own skills, gain more experience, give a better sales pitch, provide better service, have charisma and good looks, or hypnotise your clients for all I care. But "worth" needs to be in the eyes of the beholder.
It's like the antique shows. An appraiser could tell you that your 18th century salt shaker is worth a million dollars, and you could truly believe your salt shaker is worth it, but if nobody is willing to buy it at that price, it's not worth that price.
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