by Jerry Bazata
Many mobile DJs with a significant amount of open dates will automatically reduce the price of their services to book events, and secure deposits or retainer fees.
The upside of this practice is that it is a fail safe method to ensure you are continuously working. The downside is that you have sacrificed potential income because you became reactionary; looking at open dates as excess inventory.
In my opinion, employing this type of financial strategy early in a new year will ultimately hurt your bottom line.
Look At How Hotels & Airlines Handle It
We are all familiar with the pricing models that the hotel and airline industries use based upon demand. The more a hotel’s occupancy rises for specific dates, the higher the room prices go up. It’s the same with airlines. As the availability of seats decreases, the price increases.
Now here’s a novel idea. Why not mirror what they’re doing regarding booking premium dates during the year?
Naturally it takes discipline to only book with a client who is willing to invest in a higher booking fee for your services; however, it’s March 2011 and there are still a significant number of brides that haven’t booked their DJ yet. This includes the couple’s who got engaged on Valentine’s Day and want to “tie the knot” before the end of the year.
The bargain shoppers have already combed the bridal shows looking for discounts, and the commodity buyers have taken advantage of those mobile DJs that hastened to sell themselves at a below market price.
This Pricing Model Can Bring You More $$$
I have been using the pricing model based upon capacity for several years, and I can count on it to increase revenues without increasing bookings. While the sales method I’m suggesting may not be for everyone, if you’ve got the tolerance to wait for the right opportunity and stand firm with your booking fee, it just might be for you!
How do you handle your “open inventory?”
Jerry Bazata – Money Answer Man
Jerry Bazata (Maine’s DJ Jaz) has over 25 years of experience as a professional DJ entertainer. His firm, J & J Marketing and Entertainment, is a leading consultant to the event planning and music industries. Jerry is a published author and is recognized nationally as an authority on the disc jockey business. He is also Senior Vice President of a global financial institution. To learn about Jerry’s DJ company, visit MaineDiscJockey.com and you can email him at [email protected].
