Why You Shouldn’t Compete on Price

Don't Compete On Price

By Stacy Zemon

For many DJ business owners, setting prices is a sensitive topic. Many feel that they have to set their prices low to be competitive with other DJs. There are times when pricing low can be advantageous and times when it should be avoided. Here are some general tips and ideas for pricing your products and services.

Pricing Low

1. If you are selling a commodity product, then this may be a situation when you will want to consider pricing low. Commodity products are products that are easily available from multiple sources.

2. If your product or service targets low-income clients exclusively, then you may want to consider pricing low. Especially if you can make it up in volume.

Pricing High

1. If your product or service does not have a fixed perceived value, then consider raising the price. A product that you create yourself is more likely to not have a fixed perceived value.

2. If you are offering more value than your competition, then consider pricing higher. A Higher value should command higher prices.

3. Service-based businesses can often command higher pricing points. Not every DJ or MC provides the same level of service and skill.

4. Higher prices also equate to higher perceived value. In fact, some prospects will doubt the quality of your product or service if you charge too little and decide not to book you.

If you are not charging enough, then you might be leaving money on the table. Find out if other DJ services in your market are selling the same things you are offering at a higher price. For lower priced commodity items, figure out if there is a way to add value in a way that others aren’t doing so you can raise the price. Higher profits will give you more leverage and more options for creating value for your clients.

See: Capitalizing on your competitors strengths

Author

  • Stacy Zemon is the Founder, Former Publisher and Former Chief Scribe of ProMobileDJ.com. She is a veteran DJ Entertainer who is widely considered an authority on the DJ business, and has become a distinguished industry leader over the course of her illustrious 30+ year career. Stacy’s mission is to provide educational resources for DJs that support their professional growth and financial prosperity. She is a longtime writer for DJ Times magazine, and author of the world’s best-selling DJ books: The Mobile DJ Handbook, The DJ Sales & Marketing Handbook and The Mobile DJ MBA. Stacy is a self-described serial entrepreneur (Equal parts creativity and business). From her efforts, she has spawned more professional disc jockey business owners than any other person in the mobile DJ industry!

Stacy Zemon
Stacy Zemon is the Founder, Former Publisher and Former Chief Scribe of ProMobileDJ.com. She is a veteran DJ Entertainer who is widely considered an authority on the DJ business, and has become a distinguished industry leader over the course of her illustrious 30+ year career. Stacy’s mission is to provide educational resources for DJs that support their professional growth and financial prosperity. She is a longtime writer for DJ Times magazine, and author of the world’s best-selling DJ books: The Mobile DJ Handbook, The DJ Sales & Marketing Handbook and The Mobile DJ MBA. Stacy is a self-described serial entrepreneur (Equal parts creativity and business). From her efforts, she has spawned more professional disc jockey business owners than any other person in the mobile DJ industry!

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