Monday, June 8, 2009

How to Make Profit in the Mobile DJ Business

DJ's have a simple work, right? All they do is play music while people dance, and then they collect a check at the end of the event. If it was that simple, wouldn't everyone would be a DJ? There are some tricks to making decent money as a DJ. Here are a few tips to help you be a more successful DJ.

First, package price! That is a most important phrase for your DJ business. Nobody ever got rich working by the hour. So you need to be in the package price mindset. When a client asks for a price quote, don't just give out your hourly rate. That is suicide. Put together a solid price to cover all the hours worked, equipment required, and the extra duties you are performing. When you give somebody an hourly rate, they are tempted to rush you in and out of the gig. Why? Because they want to save money! Don't let that happen to you.

Putting together a package price allows you to say, "You have me for X amount of hours. I will do this, this, and this. And the total price is $xxx." When people know exactly how much they are spending, they won't rush you out the door. Which means you can charge more than your hourly rate, and your customers will be happy to pay it - because that's all they will have to pay.

Second, learn to up sell your services. Don't settle for music, lights and fog only. Maybe your customers would love to sing karaoke. You can add on a "karaoke fee" for your services. How about making announcements for prizes, etc? That's an up sell service. Anything extra that you do beyond the basic sound/lights can be an up sell. Learn to charge for the little extras, and your basic fee will increase massively.

Finally, give referral commissions. That sounds crazy to a lot of business owners, but it is actually very smart business practice. If a customer tells his cousin about your DJ services, and the cousin hires you... shouldn't your original client be rewarded for bringing you extra business? You bet he should! And when you start tossing $20 at clients for spreading the word about your DJ business, they will start advertising for you more often. You only pay them if they make you money. That's real profit power, isn't it?

I hope these few tips have been helpful to you. Remember, the DJ business is fun and can make you a lot of money on the side or as a full time job. You just need to learn the insider information that smart DJs use to make more money.

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