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Title: Time to raise prices?
Post by: Scott Olewiler on May 22, 2014, 07:06:49 AM
Last Saturday was the third show I did this year where the client handed me more money than I asked for. Also got 4 calls this week that were referrals from previous clients and two were large multi band events. One offered me twice what I would have quoted before I even got a chance to quote it.

Time to raise my prices? I think so.

I should mention I am in a very low priced market, and most of you would call me a "bottom feeder" based on my prices but I was trying to establish a reputation for quality work with the intention of getting referrals because of it.
Title: Re: Time to raise prices?
Post by: David Sturzenbecher on May 22, 2014, 08:20:17 AM
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Title: Re: Time to raise prices?
Post by: David Parker on May 22, 2014, 09:24:01 AM
one of my last jobs before I downsized, I bid a job at about twice what I would have done it for, because I didn't want the job. They paid it. I left a lot of money on the table over the years. Some people thought I was gouging them, some didn't take me seriously because I didn't charge enough, you can't win!
Title: Re: Time to raise prices?
Post by: John Chiara on May 22, 2014, 10:23:32 AM
Last Saturday was the third show I did this year where the client handed me more money than I asked for. Also got 4 calls this week that were referrals from previous clients and two were large multi band events. One offered me twice what I would have quoted before I even got a chance to quote it.

Time to raise my prices? I think so.

I should mention I am in a very low priced market, and most of you would call me a "bottom feeder" based on my prices but I was trying to establish a reputation for quality work with the intention of getting referrals because of it.

You appear to be in a market that functions logically. I would maximize my results if I were you.
Title: Re: Time to raise prices?
Post by: Jamin Lynch on May 22, 2014, 10:34:35 AM
Last Saturday was the third show I did this year where the client handed me more money than I asked for. Also got 4 calls this week that were referrals from previous clients and two were large multi band events. One offered me twice what I would have quoted before I even got a chance to quote it.

Time to raise my prices? I think so.

I should mention I am in a very low priced market, and most of you would call me a "bottom feeder" based on my prices but I was trying to establish a reputation for quality work with the intention of getting referrals because of it.

Get all you can get. If you feel you are worth it. Good quality cost more in any business.
Title: Re: Time to raise prices?
Post by: Tim McCulloch on May 22, 2014, 10:36:31 AM
Yes, it is time to raise your prices.  After doing so, I suggest you spend some $ on a couple of small but highly visible things.  I suggest nice polo shirts with your logo/company name embroidered on them, then something in the equipment inventory that will go to every gig - wireless mixing would be a good example.

It's always a good idea to for a client to see different things after a price hike.  Whatever ain't physics is psychology.
Title: Re: Time to raise prices?
Post by: Scott Olewiler on May 22, 2014, 11:09:48 AM
  I suggest nice polo shirts with your logo/company name embroidered on them, then something in the equipment inventory that will go to every gig - wireless mixing would be a good example.

Have done both of these from the start. First impressions are everything and when the crew shows up with matching, branded clothing you've already established you're serious. Also have always worked as a two man crew and one person always stays at the board by the stage (EDIT* technically as far as the band's concerned, they're mixing the monitors and watching the stage, but usually they're just standing there doing nothing, but when a mic stand boom fails or a drum mic comes loose and someone rushes into action, the band is impressed*) while the other remote mixes. I think it automatically makes me look more "professional". Going to restructure prices and system offerings this weekend. Recently just added costing for extra travel and a 3rd crew person for multi band events.  Since I am expecting a delivery of some ETX35Ps this week, it a good time to update everything.  Bands in my area are only willing to spend about $200-250 max for sound but all my referrals for non-bar gigs are coming from the bands I'm doing bar gigs for. 
Title: Re: Time to raise prices?
Post by: Steve Oldridge on May 22, 2014, 11:39:04 AM
Bands in my area are only willing to spend about $200-250 max for sound...
 
I'd consider starting back up again for that kind of money. Before I [basically] stopped, I was  down to one 7-piece band paying me $250 for SR, but I did ALL the work (with one assistant). It was worth it to them to NOT worry about PA.  Most other bands in my area want full PA and lights for $125 or not at all.  They'll go out and buy a B*ringer rig instead. Not worth even backing my truck up to the trailer for that.

I make twice that [now] for playing (bass/guitar) gigs on the weekend. 
Title: Re: Time to raise prices?
Post by: Rob Gow on May 22, 2014, 11:49:49 AM
Good stuff. It took me a couple years to get to where I'm fairly happy with what I'm making. I always wish it could be more but that's life.

One thing you might consider adding is a touch of lighting. For everything I do, I always include a pair of Blizzard Fab5's they are an RGBAW fixture for some front lighting. These days the Hotbox RGBAW is the replacement (I believe the fab5 is discontinued) it would be something that would definitely add to your setup, something noticeable.

Here's an open mic without any lights (hard pressed for time)
http://youtu.be/W0KD8eSlDWI

And another open mic, same venue with a light on each main speaker, each set to a slow fade.
http://youtu.be/Q3WBmJAUdTk

Might cost you $500ish but then you're sitting pretty, and it's an added new feature!!


Good luck!!


Edit: offer $200 + shipping each for 2 new hot boxes



Look at this on eBay:

Blizzard Lighting HotBox 5 RGBAW *MAKE OFFER* New w/ Warranty

http://bit.ly/1jYdL8v
Title: Re: Time to raise prices?
Post by: Brian Jojade on May 22, 2014, 12:13:23 PM
I should mention I am in a very low priced market, and most of you would call me a "bottom feeder" based on my prices but I was trying to establish a reputation for quality work with the intention of getting referrals because of it.

That strategy is very difficult to make work.  Once you establish your reputation of low prices, it's pretty tough to shake that.  If you can do a job for a client this year for a low price, they aren't going to be happy if you double it next year.  You'll end up losing that client, and be no better off than if you had started with your pricing where it needs to be.

Now, working up the ladder on the type of events you can do is a strategy that can work.  Simple bar jobs are a starting point, and the pay matches that.  But once you move up and beyond that, you can forget about continuing to do those jobs, because the $$ don't work out long term.

When setting pricing, using the formula equipment + transportation + Labor is an important formula.  Don't let the customer dictate the price.  If they won't pay what it COSTS for you to do the job, don't take it.  This is a business.  Make some $$ at it, or get out of the way.
Title: Re: Time to raise prices?
Post by: Bill Schnake on May 22, 2014, 12:45:21 PM
Last Saturday was the third show I did this year where the client handed me more money than I asked for. Also got 4 calls this week that were referrals from previous clients and two were large multi band events. One offered me twice what I would have quoted before I even got a chance to quote it.

Time to raise my prices? I think so.


I remember the first time I told a band that it would cost $600 for me to provide sound and lights for a 3 hour show.  That was a while ago.  I couldn't believe it when they said that was great I worked with them for 5 years.  The next big one was when I booked my first two day festival and ask $2,500.  The town said yes and now we do a five year contract with an increase for expenses every year.  Finally, I remember the first time we did the Beach Boys.  The production for the show was $19,000...for a one night.  I thought I was gonna die.  I remember I got a call from the Beach Boys LD and he wanted an additional $3,000 worth of MAC Movers.  I called the venue told them about the request and the answer was...'Bill, give them whatever they want, it doesn't matter.  We are already up $90,000 over our expense for the night, we'll see you in a couple of weeks.'  My point is that if you never ask for it, you will never find out if you can get it.

Bill  8)
Title: Re: Time to raise prices?
Post by: Steve M Smith on May 22, 2014, 01:26:37 PM
Bands in my area are only willing to spend about $200-250 max for sound

Is it normal for bands to arrange and pay for the sound hire in the US?  Over here (England) the venue or promoter usually deals with it.


Steve.
Title: Re: Time to raise prices?
Post by: Tim McCulloch on May 22, 2014, 01:27:34 PM
That strategy is very difficult to make work.  Once you establish your reputation of low prices, it's pretty tough to shake that.  If you can do a job for a client this year for a low price, they aren't going to be happy if you double it next year.  You'll end up losing that client, and be no better off than if you had started with your pricing where it needs to be.

Now, working up the ladder on the type of events you can do is a strategy that can work.  Simple bar jobs are a starting point, and the pay matches that.  But once you move up and beyond that, you can forget about continuing to do those jobs, because the $$ don't work out long term.

When setting pricing, using the formula equipment + transportation + Labor is an important formula.  Don't let the customer dictate the price.  If they won't pay what it COSTS for you to do the job, don't take it.  This is a business.  Make some $$ at it, or get out of the way.

THIS.  RIGHT.  HERE.

And combine it with Bill Schanke's post under it.  THOSE. RIGHT. THERE?  ;)

I've been down road Brian describes, and all 'exposure' got me was a client base that couldn't or wouldn't pay more down the line.  One of our forum members has this in his sig line "We're playing this gig for exposure."  "This is Canada, people die from exposure."  So right that is.

Getting caught up in chasing every gig I could find meant that I didn't have time to up my game and the income stream wouldn't support upgrades to gear (hell, maintenance was enough of an expense already).  After I discovered that every gig I did actually cost me money at the end of the day, I tried to make changes but there was no viable projection for the needed increase in revenue to make a go of it long term.  I sold off most of my gear, did the BE thing for a few years, then took some accounting and business classes and went to work for others.  I've learned a lot from everyone I worked for and consider myself fortunate to have worked for both successful and not so successful enterprises.

Bill's "Reader's Digest" bio is spot on and shows how the progression of "other people's money" factors into his revenue growth.  When you're getting money from a band or promoter, it's THEIR profit that gets smaller.  With OPM, it's a increase in expenses, not a loss of profit.
Title: Re: Time to raise prices?
Post by: Tim McCulloch on May 22, 2014, 01:34:54 PM
Is it normal for bands to arrange and pay for the sound hire in the US?  Over here (England) the venue or promoter usually deals with it.


Steve.

It depends.  In bars and pubs there may or may not be an installed system (and of dubious repair and furnishing).  Some bands will hire PA or buy their own just to avoid using crappy installed systems operated by the guy working for free beer.  Other bands will hire in because they play bars without PA, but the band is not a cooperative venture so no cash to buy a system.

In the case of party bands, big wedding bands, some corporate event entertainment, etc the band might opt to hire in a firm of their choice and pass that expense along to the promoter or event planner... or send a rider and let the event planner handle it.
Title: Re: Time to raise prices?
Post by: David Parker on May 22, 2014, 02:33:45 PM
Is it normal for bands to arrange and pay for the sound hire in the US?  Over here (England) the venue or promoter usually deals with it.


Steve.
in the smaller clubs in the Houston area, sound is not provided. Pay for the band is generally $1000 or less, sometimes a lot less. Bands start out owning a system and running it from stage. After a while they figure out it's more work than it's worth, plus they aren't getting good sound quality mixing from the stage. So they start hiring out, but can only afford $200-$300 obviously. There are several providers working at that level. I fought it for a few years. The way I saw it, my gear was paid for, I was getting no return on investment, I was only making wages for myself. But it was a job I could do solo, no payroll and staff to keep up with. Then I got tired of the stress and other investments matured so that I didn't need the money any more. But there are much younger folks getting into it.
Title: Re: Time to raise prices?
Post by: Dave Neale on May 22, 2014, 02:49:00 PM

Last Saturday was the third show I did this year where the client handed me more money than I asked for. Also got 4 calls this week that were referrals from previous clients and two were large multi band events. One offered me twice what I would have quoted before I even got a chance to quote it.

Time to raise my prices? I think so.

I should mention I am in a very low priced market, and most of you would call me a "bottom feeder" based on my prices but I was trying to establish a reputation for quality work with the intention of getting referrals because of it.

How cheap have you been working? I'm up in Harrisburg and trying to figure out what the hell happened to our market?
Title: Re: Time to raise prices?
Post by: Scott Olewiler on May 22, 2014, 03:32:19 PM
How cheap have you been working? I'm up in Harrisburg and trying to figure out what the hell happened to our market?

Last 3 shows I did were $250, $200 and $300.  Last 3 I bid and got were  $285, $400 and $700. I price based on a 15 mile radius of York and shows are always outside that so I'm always tacking on additional travel at $25/hr.   I never get any calls from Harrisburg area. I mean 1 so far. That was my second show and I did it for $100.  Band has rehired me for more since then and then broke up.  Everything currently being booked is west of me.
Title: Re: Time to raise prices?
Post by: Eric Baker on May 22, 2014, 04:52:51 PM
Last 3 shows I did were $250, $200 and $300.  Last 3 I bid and got were  $285, $400 and $700. I price based on a 15 mile radius of York and shows are always outside that so I'm always tacking on additional travel at $25/hr.   I never get any calls from Harrisburg area. I mean 1 so far. That was my second show and I did it for $100.  Band has rehired me for more since then and then broke up.  Everything currently being booked is west of me.
Scott,
I think you are a little under priced for the area. I working out of Harrisburg, and I don't leave my house for less then $300.00. I have about six bands that only use me. I'm playing at least four times a month in the winter. But, now that fairs and carnivals are starting I will be out about eight times a month which pay at least $400.00. It did take me about five years to get where I'm at now. But, in August I will be moving to Phenix City AL. Send me a PM I maybe able to get you some work in the Harrisburg area.
Also if anyone is reading this from the Phenix City area and would like to team up on somethings in August PM me I will send you a list of equipment that I have. Or I would be willing to run your systems or just help you out from time to time.     
Title: Re: Time to raise prices?
Post by: Richard Turner on May 22, 2014, 11:03:12 PM
+1 on logo on the polo shirt

if you dont have a local embbroiderer $20 from vistaprint and it arrives in your mail 10 days later.
Title: Re: Time to raise prices?
Post by: Steve M Smith on May 23, 2014, 01:54:56 AM
if you dont have a local embbroiderer $20 from vistaprint and it arrives in your mail 10 days later.

Vistaprint are great.  Once you start buying from them, they start offering lots of free stuff too.


Steve.
Title: Re: Time to raise prices?
Post by: Scott Olewiler on May 23, 2014, 07:52:28 AM
+1 on logo on the polo shirt

if you dont have a local embbroiderer $20 from vistaprint and it arrives in your mail 10 days later.

$25 if you want colored shirt. Just ordered 3 more this week. Vistaprint may be the greatest thing to happen to the home based business since the internet.  Between Vistaprint and the internet I have succesfully launched a very in demand Blues band and then the sound co. without ever cold calling anyone.  You couldn't do that 20 years ago.

Unfortunately I'm so busy in multiple projects I'm turning down as much work as I'm taking. So far this week, had to  turn down 2 band gigs and received 5 inquiries for sound jobs. Everyone wants us on the same freakin' days we're already booked. Not that I'm complaining. It's great to be wanted.
Title: Re: Time to raise prices?
Post by: Richard Turner on May 23, 2014, 09:33:19 PM
I've yet to pay full fare on vistaprint, best coupon yet was $100 off $200 invoice plus some of it was buy this get free ship on full order, was around week 2 dec IIRC.

the standard business cards are just fair quality but great for a new business where your handing out 50 cards a day
Title: Time to raise prices?
Post by: Dave Neale on May 24, 2014, 12:29:47 PM
Scott, found your pricing on your web site. You should certainly bump your rates up.  At some point you are going to need to absorb the cost of repairs, whether from wear and tear or client "accidents" it's going to happen. Also I can't imagine you have much spare gear in inventory at that pricing so that's something to consider as well.

Your rates are about half of what I was getting 5-10 years ago, before I gave up from frustration at continuous newbies with cut rate prices and MI gear and found some places to park the b rigs as installs and went mostly" white glove".

I'm also making an assumption that you still have your day job...
Title: Re: Time to raise prices?
Post by: Scott Olewiler on June 05, 2014, 07:14:05 AM
I just wanted to follow up on this thread. Since I started this thread I've actually raised my prices 3 times. I'm still not where I want to be yet and I'm still getting more calls than I care to take.  Going to hold prices for awhile and see if the calls continue to come in. Part of me still feels I need to prove myself a little more first.

 One thing I have done is added fees for travel time and "wait" times.  I did a show last week that was 2 hrs away and there was a 3.5 hr window between load in and performance time, due to wedding ceremony on the same grounds scheduling. We actually were set up and had sound check down in an hour even though band had allowed a 1 hr load in and 1.5 hr for sound check.

The band came out and told us after sound check they would have easily paid another $100( they were quoted a price under my old pricing). They also said at the end of the night that I was definitely one of the top 5 sound guys they've ever worked with. This is a fulltime traveling band so that meant a lot. They ended up giving us a $50 tip which I split with my helper. Since I'm trying to treat this like a business I've taken the approach that the help gets paid first whenever possible at least until I can give him a decent hourly rate so at the lower prices I've been going out on I've been splitting 60-40 with my helper( he gets the 40).

At the end of the day(after tip) he got $140 and I got $200 for a 12 hr day. I also spent $50 in gas and tolls (out of my pocket) so I ended up with only $150. That really hit home. If another company asked me to come work a 12 hr day for them for that I would have told them to pound sand. I actually had a call from a local label offering me a "full time" position doing FOH their shows for $100 a show and they wanted me to use my gear. I told the guy I wouldn't back out of my driveway for that but reality is I wasn't that far away from that money on this job.

From now on I'm going to make sure I get paid for all my time and will continue to raise my prices until I feel I've reached the limit my market can bear or move up into a higher paying market. I really appreciate all the comments and info on this thread about pidgeonholing myself into lower prices etc. A lot of you have contacted me privately and shared what you're charging so I could get a sense of fair market value. That really proved I was (and still am) underpriced and need to get my prices up as soon as possible. Since I'm already 100% legal with the state, can collect sales tax, etc. the sky should be the limit right?
Title: Re: Time to raise prices?
Post by: Brian Jojade on June 05, 2014, 11:02:02 AM
I just wanted to follow up on this thread. Since I started this thread I've actually raised my prices 3 times. I'm still not where I want to be yet and I'm still getting more calls than I care to take.  Going to hold prices for awhile and see if the calls continue to come in. Part of me still feels I need to prove myself a little more first.

Using the rules of economics, if you're getting more calls than you can handle, raise your prices NOW.  You're leaving money on the table that you can never get back if you're undercharging for your services.
Title: Re: Time to raise prices?
Post by: Tim McCulloch on June 05, 2014, 11:38:43 AM
Using the rules of economics, if you're getting more calls than you can handle, raise your prices NOW.  You're leaving money on the table that you can never get back if you're undercharging for your services.

Preach it, Brother!
Title: Re: Time to raise prices?
Post by: Ray Aberle on June 05, 2014, 11:39:09 AM
One thing I have done is added fees for travel time and "wait" times.  I did a show last week that was 2 hrs away and there was a 3.5 hr window between load in and performance time, due to wedding ceremony on the same grounds scheduling. We actually were set up and had sound check down in an hour even though band had allowed a 1 hr load in and 1.5 hr for sound check.

I'm less inclined to have fees for travel *time,* just *distance* -- outside of, say, 25 miles from Seattle or Portland, I'm billing mileage. If you want me to go to the San Juans, or Eastern Washington, I do expect that to be covered. Same deal with ferries/tolls- those are line items on the invoice because those are expenses you have incurred in order to provide the service. Most clients understand about those sorts of things. It's like when you order pizza- yeah, you could go pick it up yourself, but when they're paying someone to bring it to you, you reimburse them for that expense through their delivery charge.

Wait time/etc- at the level of your prices, yeah, an upcharge for chilling onsite is reasonable. I do that when I DJ weddings-- "Stand by" time, if you want me to setup at a certain time way before your ceremony, then that means I have to be there, onsite, often a long way from home, and I expect to be paid for the time I am required to be onsite.

The band came out and told us after sound check they would have easily paid another $100( they were quoted a price under my old pricing). They also said at the end of the night that I was definitely one of the top 5 sound guys they've ever worked with. This is a fulltime traveling band so that meant a lot. They ended up giving us a $50 tip which I split with my helper. Since I'm trying to treat this like a business I've taken the approach that the help gets paid first whenever possible at least until I can give him a decent hourly rate so at the lower prices I've been going out on I've been splitting 60-40 with my helper( he gets the 40).

At the end of the day(after tip) he got $140 and I got $200 for a 12 hr day. I also spent $50 in gas and tolls (out of my pocket) so I ended up with only $150. That really hit home. If another company asked me to come work a 12 hr day for them for that I would have told them to pound sand. I actually had a call from a local label offering me a "full time" position doing FOH their shows for $100 a show and they wanted me to use my gear. I told the guy I wouldn't back out of my driveway for that but reality is I wasn't that far away from that money on this job.

I get the feeling that that was "end of story" pay, and that you weren't getting anything more then the $200 to cover.... gear, both purchase, maintenance and depreciation; vehicle wear; advertising; office expense; insurance; taxes -- everything that comes from running a business.

Something to consider: set up your gear and crew as separate lines on the invoice. (and other expenses, mileage, tolls, etc, also line-itemed.) This accomplishes several things: it allows the client to see where the expense is coming from, which makes it easier to justify, say, a $200 tech charge. "You gotta pay for someone to be there!" Also, in an instance where you are discounting the gear (for a friend, charity, whatever) you can show that discounted, but still list a full crew charge. How I run things is that crew charges are inviolable-- I don't discount them, and they reflect what my guys get paid. The gear charge is what goes into my pocket, and what I choose to do with that charge is up to me.

The hard part you are in now is that a steady stream of short ($20 here, $30 there) price increases is going to bug a client that prefers to have stability in prices. If you're "always raising prices," you have to demonstrate what these new prices are getting beyond what they were getting before. It's been said that it's hard to raise prices once you get a rep for being affordable (for lack of a better term; I didn't really want to say "cheap" lol) -- so perhaps consider setting prices that are where you want to be in, say, 2 years, and give discounts to your current clients to get them back to where they're used to for now.

So, your current Big System charge is $450. Let's break that down, and actually dictate that $250 is your pay, $200 is your assistant's pay. Those two numbers (A1 and A2) are now your system floor. Any event, that is tech'd, with two people is always at least that amount. CODB. Now take your gear, figure 2-5% of it's retail value, and there's the Gear Rental line item. So your new, big-system rate is-- what, a grand or so, including those tech fees? Discount that gear rental (say it's $550) by 70% for your good clients, maybe a New Client Discount for someone who just calls you up by 30% - current clients are now paying $605, and a new client will pay $835. The New Client is going to understand that they get the New Client Discount only when they're a New Client, and will be understanding when the quote for their second event is a grand.

Basically, a) Always show what exactly someone is paying for- the more detail the better, b) keep the gear and the crew separate, so you can show/discount those as appropriate, and c) it is always better to charge a larger amount, and discount from that, so the client knows they're getting a deal, and that this discount won't always be there.

With your smaller rigs, same deal with delivery/setup/removal: that's a separate line item on your invoice. That's a service, it needs to be charged for. If someone came to your office and wanted to rent that small rig, you're charging the same for the *gear rental* as you are when it's delivered, it's just that the client who has it delivered is paying for that extra service, and they will understand a delivery charge. Someone is performing a service! (I also have a 2.5% of gear "consumables charge" for delivered rigs, since I use a good amount of gaff tape when taping cables down!)

Just some thoughts-- breakfast time now!

-Ray
Title: Re: Time to raise prices?
Post by: Rob Spence on June 05, 2014, 12:08:43 PM
I have a spreadsheet to price work.

It is set up in several sections, gear, labor, transport, fees&taxes.

The gear section has my gear for 3 price points, Daily production at 3%, multi day production at 2% & rental at 5%.  Cross rent to other sound guys is at a production rate.
The rate is calculated at a percent of replacement cost x days x units. I use the multi day rate when I can leave the rig setup overnight (a little less wear & tear).
Gear is in 4 sections, sound, lights, power & cross rent.
I don't itemize cost of things like cables and stands except for dry rental.
Most of the time I don't charge for the power distribution unless it is asked for for other uses.

Labor has 3 sections, planning & design, load in/out, operation. Each section has lines for A1, A2, & crew. Load in also has a line for A1 as crew. Each line has an hourly rate. I fill in the number of hours for each line.

Transport has mileage, fuel surcharge if needed, tolls etc.

At the bottom the sections are summed such that I can apply a discount to the rental of my gear but it isn't applied to gear I had to cross rent. In the end, I can just take the summary lines for the proposal and invoice.

This makes costing much more consistent and fair.

If I want to do a favor, I can discount the gear as much as I want and I can choose to work cheaply but crew gets paid and the client can see that.

Anyway, perhaps this is useful to y'all?


Sent from my iPad using Tapatalk HD
Title: Re: Time to raise prices?
Post by: Eric Simna on June 06, 2014, 12:39:24 AM
I have a spreadsheet to price work.

It seems like you've done some serious Excel work on this.  Would you be willing to share?  This has me intrigued and I'm always looking for ways to improve.  Especially in documentation.
Title: Re: Time to raise prices?
Post by: claude cascioli on June 06, 2014, 09:10:13 AM
i aggree with you. the problem is if you raise there someone else who going come in cheaper. i do this and it works.if i want a client i do the frist event at no charge i dont even discuss price till after i do the job. and 9 out of 10 times i have gotten the account. i have done this about 15 times and its paid i even got one customer to pay me 4 times what he was paying after i showed him the huge diffrence between 4 speakers on sticks(for an audence of a 1000) and a 4 box turbosound tms 4 rig with 5000 watts of power .the only problem was the lack of power available we poped the breaker 3 times during the show. the following week we arrived to have a brand new 100 amp panel installed by the towns electician. the rest of the shows went flawless
Title: Re: Time to raise prices?
Post by: Ray Aberle on June 06, 2014, 11:36:36 AM
i aggree with you. the problem is if you raise there someone else who going come in cheaper. i do this and it works.if i want a client i do the frist event at no charge i dont even discuss price till after i do the job. and 9 out of 10 times i have gotten the account. i have done this about 15 times and its paid i even got one customer to pay me 4 times what he was paying after i showed him the huge diffrence between 4 speakers on sticks(for an audence of a 1000) and a 4 box turbosound tms 4 rig with 5000 watts of power .the only problem was the lack of power available we poped the breaker 3 times during the show. the following week we arrived to have a brand new 100 amp panel installed by the towns electician. the rest of the shows went flawless

For some clients, quality and service is more important then the cost.

Those are the clients I want to have anyways.

I just had one client tell me last week he no longer bids his job out. I'm on my 8th year with them this year-- he knows he gets a great price from me, but more importantly it will be done well, and on time, and they don't have to worry about it. We're just about to hit five figures for this year's production, for a one day event. It's a long day, with 5 different sound systems and a good sized crew, but they're super happy with us and our service.

I've got a buddy that has had people approach his clients and offer to do the gigs cheaper. And the clients tell them no, because they are happy with my buddy and the work he does.

So it's about the relationship with your client.

Ray
Title: Re: Time to raise prices?
Post by: Tim McCulloch on June 06, 2014, 12:32:57 PM

I've got a buddy that has had people approach his clients and offer to do the gigs cheaper. And the clients tell them no, because they are happy with my buddy and the work he does.

So it's about the relationship with your client.

Ray

Today I'm sending a contract to a client for whom we'll have done 18 shows in 17 years (annual event with a special thrown in).  The client has been cold-called with offers under our fee, but we get the gig anyway.  We've established a relationship that goes beyond simply showing up and doing a show - I know my contact's kids and grandkids, the health status of some of the more aged members of the committee, and I keep up with goings-on in their community.  Not just because I want to keep the event forever (although I do), but because we get to do a gig for people we've come to like very much, who've welcomed us into their city and treat us well.

A couple of years ago I told my contact that I was going to retire.  She put me in a head lock and said "you cant' retire until I retire."  There ya go. :)