Guest post by Alan Dodson, DJ/MC/Game Master.
We are living in a time of economic uncertainty where goods and services are controlled by the law of supply and demand as well as available funds and budgets. So, how can a professional mobile DJ maintain a demand for his or her services and receive a top rate?
The quick answer is to jump to “price” as a conclusion; however, when it comes to value, the “cheapest” product or service may well turn out to be the most EXPENSIVE. Ask any client who has had their once-in-a-lifetime event ruined by an inexperienced for incompetent DJ. Value in our business is a matter of what our service is worth to a customer – and we need to get them to understand it up front to be booked.
You’ve probably heard the old adage: “The good feeling of lower price is forgotten when the reality of poor quality remains.” One of my favorite quotes by Warren Buffett is: “Price is what you pay….value is what you get!” How then does a DJ effectively communicate value to a price-conscious prospect? Don’t fall into the price trap!
In the final analysis, it’s not the cheap DJs that people with discretionary funds will be turning to but rather the truly professional DJ that will ultimately offer the higher value proposition through personalized attention, detailed planning services, outstanding performance, state-of-the-art equipment and membership in a professional DJ association. It’s all of these items that make a high-value DJ recession proof.
Here are some ways to bullet-proof your business from unstable economic conditions.
The Top Ten Ways to Thrive in a Down Economy:
1. Focus on what you do best: Promote your services at the type of event at which you excel the greatest, even if it is not your highest priced service. Limit or stop advertising and promoting the others.
2. Don’t Over Analyze: It is good to look at your business options before you take action but in the end, time is of the essence, so it’s better to take some action than no action at all.
3. Evaluate Your Business Practices: Recreate your DJ business into a leaner, healthier and more customer service oriented premium service with greater added value.
4. Connect to Your Clients Meaningfully: Have conversations with current and past customers and ask them questions. The more the clients talk, the more you will learn about their needs and wants.
5. Follow up with your past clients: The least expensive way to gain new business or referrals is from past happy customers.
6. Prioritize Needs and Wants: When clients are cautious about spending money, they need to see and understand that they are making an investment in the quality of their event when they hire you.
7. Find Creative Alternatives: DO NOT cut your rates. Instead, raise them when the economy is uncertain. You will probably book less events, so your rate per event should increase not decrease. Help clients find ways to reduce the overall cost of their event (e.g., eliminating chair covers, having a buffet rather than a sit-down plated dinner, losing the ice sculpture, etc.)
8. Increase Word of Mouth Referrals: Contact venues and other vendors in-person to discuss your services. Always dress appropriately when representing your business in public. You wear a tuxedo when performing at a wedding, why would you go out visiting vendors wearing jeans? You only get about 8 seconds to make a first impression!
9. Connect With Your Community: Attend community events such as Chamber of Commerce or Lion’s Club meetings where you can have face-to-face conversations. People who know and like you are most likely to retain your services.
10. Be Charitable: Provide your services for “free” at charitable and community events. Not only is this a great way to become known as a caring company in your area and generate future business but you will also feel good about putting your values into action.
The state of the economy begins as an inside job, so go out every day with a positive and prosperous attitude. Have fun and be enthusiastic about the work you do. Hey, we get to attend parties for a living and there are few professions that offer that luxury! Agreed?
While I agree with the author’s distinction between price and value, and all of his tip are solid in their own right, it is obvious that he doesn’t operate within the Michigan economy. Our state is the hardest hit. Unemployment is over 15%, and in the big cities like Detroit, it is shockingly close to 50%! Our industry has responded unilaterally by dropping their rates. I found this out by doing a survey for an article I wrote for Mobile Beat magazine. Even those who haven’t officially lowered their rates are quick to cut deals, and many have even added a slew of other services that used to be big-ticket items — things like video and karaoke — but now they offer them for free, just to stay booked. It’s literally been a Wal-Mart like race to the bottom.
I have found a few ways to improve my booking ratio, but it’s nothing that other companies could duplicate; promoting my book, “The Complete Disc Jockey” and highlighting the seminars I’ve given over 2009 — literally teaching other DJs how to do the job. Yet I, too, had to lower my rates. It came down to a choice: go with the crowd or get no work. I have some part-time colleagues who have day jobs, so they can survive with a small number of jobs. We full-timers cannot. So again, while all of this advice is excellent, it’s going to take something more in a market like mine.
Stu, although I do not operate in the Michigan economy, my business is based in East Tennessee, in the Heart of Appalachia, where the economy is just as hard hit as that of Michigan. There will always be different price points available for every service. There will always be people that are looking at more than the price when making their decision about who to hire for their wedding. The including of extra services instead of lowering prices is an fantastic way to maintain price integrity on a short term, but once you start lowering your prices, it becomes very difficult, if not impossible, to raise them again “when the economy improves”. This applies not only to the DJ industry, but every single business in existence.
Hey Alan - thanks for the reply! Again, I can’t disagree with offering add-ons for free to maintain price point, but things have gotten so bad that these companies have done both; lowered their rates AND tossed-in extras! While I will disagree with you that, once the market rebounds, raising rates will be no different than it was when I did it before, I’d say that people will now view all these add-ons as worth nothing, because that’s what they’ll become accustomed to paying for them. On top of it all: when business gets harder to earn, advertising budgets MUST go up! So again, it’s going to take some real creativity to survive this recession.
Stacy, Great post and I enjoyed reading it. I think alot of the feedback on this topic will vary by region, but I think everyone can agree on the fact that in order to thrive, you must put the effort in and work harder then ever. I am always half full guy, and a huge fan of value. Respectively, I feel the down ecomony has in some ways helped my business in a few ways…. Here are two examples…. First -it has allowed our business opportunities as some competition have been closing doors etc …. Second our bookings on off nights as well as people that previously would have opt’ed for a band are now landing in our office in search of high end entertainment.
NJ is much different then Michigan and I am pulling for guys with great businesses like Stu.
Anyway, thanks agin for the read, keep up the great blog.
Jason Jani