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Author Topic: low balling a weekend worriors that have ruined profits  (Read 59492 times)

Ian Mansfield

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Re: low balling a weekend worriors that have ruined profits
« Reply #40 on: May 24, 2014, 03:08:02 AM »

Well written TJ.

There is a very good book written in the early sixties by J. Paul Getty, called How to BE rich, in it he discusses the "business" side of business and although it was written 50 years ago, 90% of it could have been writer yesterday. Our jobs as owners / managers are to ensure we give great products/services at HIGHLY competitive prices and make a profit doing so. If there is cheaper competition you need to look within your operation to decide how to deal with it , and not complain about them. Microsoft and Apple have more bottom feeder competitors than any companies I know, in some cases the competitive products are given away, and yet they are highly successful.

Stick to what you good at, and do it well. If someone can do it much cheaper than you, successfully, then you have the problem, not them.
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Craig Leerman

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Re: low balling a weekend worriors that have ruined profits
« Reply #41 on: May 24, 2014, 07:11:02 AM »

The first problem with our industry is that we have HOBBYISTS and UNLICENSED practitioners passing themselves off as companies.

My first answer to a client who wants me to match a lowball price: "Is the "company" who bid the low price licensed and insured?" I then go on to explain how an unlicensed and uninsured vender can end up costing them a ton of money if there is an accident or injury at the event.

I spend thousands a year just on being legal. Not many houses are ZONED for a business, especially a production company so I need to rent a commercial property (or buy one). Because I'm in a commercial property I have additional costs like inspection fees and Fire extinguisher maintenance (here in Vegas my 4 building extinguishers need a certified fire maintenance company to check, refill and retag them every year)

I pay for state and county licenses, corporate filing fees, ficticious name registration and of course insurance. My phone and internet lines also cost more than ones at home because I am a business customer, same with my power costs. While folks working out of their garages may use their personal vehicles and/or small trailer to haul gear, I use company vehicles and have to pay higher commercial vehicle insurance than a regular person. Larger trucks also equal larger maintenance costs and usually higher fuel costs.

So you can imagine the look on my face when I read about some of you hobbyist/illegal "companies" complaining about others low balling!


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Steve M Smith

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Re: low balling a weekend worriors that have ruined profits
« Reply #42 on: May 24, 2014, 08:22:52 AM »

In the UK we don't have any of that licencing nonsense.  No reason why you should pay good money to a government department for nothing of any value in return other than a piece of paper to prove you have paid it.


Steve.
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Mike Pyle

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Re: low balling a weekend worriors that have ruined profits
« Reply #43 on: May 24, 2014, 04:03:02 PM »

In the UK we don't have any of that licencing nonsense.  No reason why you should pay good money to a government department for nothing of any value in return other than a piece of paper to prove you have paid it.


Steve.

https://www.gov.uk/set-up-business-uk




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Brook Hovland

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Re: low balling a weekend worriors that have ruined profits
« Reply #44 on: May 24, 2014, 04:14:55 PM »

BINGO! It floors me how many "companies" this industry and others have no workers comp, no liability insurance and it doesn't seem to bother some promoters in the least. One injury could derail a venue or promoter.
« Last Edit: May 24, 2014, 04:16:59 PM by Brook Hovland »
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Steve M Smith

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Re: low balling a weekend worriors that have ruined profits
« Reply #45 on: May 24, 2014, 08:43:05 PM »

https://www.gov.uk/set-up-business-uk

Most people doing this just register themselves as self employd.  It's not really the same as getting a licence to be in business.


Steve.
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Steve Alves

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Re: low balling a weekend worriors that have ruined profits
« Reply #46 on: May 24, 2014, 08:54:29 PM »

In the UK we don't have any of that licencing nonsense.  No reason why you should pay good money to a government department for nothing of any value in return other than a piece of paper to prove you have paid it.


Steve.

I ran a business in the UK. It is one hundred times more restrictive then in the US.. Plus the employees have more rights then the employer.
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Steven Alves
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Stephen Swaffer

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Re: low balling a weekend worriors that have ruined profits
« Reply #47 on: May 24, 2014, 10:22:52 PM »


The first problem with our industry is that we have HOBBYISTS and UNLICENSED practitioners passing themselves off as companies.


Name an industry that does not have this "problem."

IMO the fact that we have the opportunity to start small and either learn to handle the business aspect properly and grow,or fail to learn and fall on our face is one of the reasons we have a great country to live and do business in-defended by many who we pause for too short a time this weekend to remember and honor.

How many audio companies that are major players today started out of a garage or the trunk of a personal vehicle?  Why should you have the right to make big money doing something you enjoy, while the aspiring provider is denied the opportunity to get started by zoning or restrictive licensing?  You have a head start, if he beats you at your game, he is the better man-whether we like to admit it or not.

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Steve Swaffer

John Chiara

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Re: low balling a weekend worriors that have ruined profits
« Reply #48 on: May 24, 2014, 10:37:23 PM »

Name an industry that does not have this "problem."

IMO the fact that we have the opportunity to start small and either learn to handle the business aspect properly and grow,or fail to learn and fall on our face is one of the reasons we have a great country to live and do business in-defended by many who we pause for too short a time this weekend to remember and honor.

How many audio companies that are major players today started out of a garage or the trunk of a personal vehicle?  Why should you have the right to make big money doing something you enjoy, while the aspiring provider is denied the opportunity to get started by zoning or restrictive licensing?  You have a head start, if he beats you at your game, he is the better man-whether we like to admit it or not.

2 words...
Liability.....everyone sues for everything.
Quality....good gear is cheap. Years ago you had to improve your skills to advance....today...that I see....all you need is a void sales rap because the buyers are much more ignorant. The public suffers but ends up being exposed to so much mediocrity that they are not valid judges of quality. Someone  has to have the knowledge and pride to keep this decent.
Just my opinion, but most events I see downright suck and are embarrassing to be at.
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Jason Raboin

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Re: low balling a weekend worriors that have ruined profits
« Reply #49 on: May 25, 2014, 09:05:06 AM »

The first problem with our industry is that we have HOBBYISTS and UNLICENSED practitioners passing themselves off as companies.

My first answer to a client who wants me to match a lowball price: "Is the "company" who bid the low price licensed and insured?" I then go on to explain how an unlicensed and uninsured vender can end up costing them a ton of money if there is an accident or injury at the event.

I spend thousands a year just on being legal. Not many houses are ZONED for a business, especially a production company so I need to rent a commercial property (or buy one). Because I'm in a commercial property I have additional costs like inspection fees and Fire extinguisher maintenance (here in Vegas my 4 building extinguishers need a certified fire maintenance company to check, refill and retag them every year)

I pay for state and county licenses, corporate filing fees, ficticious name registration and of course insurance. My phone and internet lines also cost more than ones at home because I am a business customer, same with my power costs. While folks working out of their garages may use their personal vehicles and/or small trailer to haul gear, I use company vehicles and have to pay higher commercial vehicle insurance than a regular person. Larger trucks also equal larger maintenance costs and usually higher fuel costs.

So you can imagine the look on my face when I read about some of you hobbyist/illegal "companies" complaining about others low balling!

I have insurance and commercial plates on my van, but store my gear in my garage.  I am a sole proprietor, not a corporation.  Does this make me a hobbyist?  Illegal?  Many electricians, roofers, plumbers, and other tradesmen store their vehicles and tools at their homes, but I doubt they would be consider themselves hobbyists.
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Jason Raboin
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Klondike Sound

ProSoundWeb Community

Re: low balling a weekend worriors that have ruined profits
« Reply #49 on: May 25, 2014, 09:05:06 AM »


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