Cost of living

The Consumer price index is the averaged costs of a variety of goods & services.

In 1983 it was 100. Today's index is 212.17. This is an increase in the cost of living of 112.17% since 1983. In 1983, the average rate for rate for a pro mobile DJ was about $400 for a 4 hour party or around $100 per hour. It is exactly the same today. In today's economy, a mobile DJ charging $400 is making a gross income of 112.17% less than it was 27 years ago, which equates to -$48.68 for a 4 hour party in today's dollars.

Hourly Rate

Do your fees take into account the hours you spend on event planning, meetings, transportation, set up & tear down, music research & acquisition, accounting, marketing, etc??? If you work a 40 hour week operating your business, do one party per week & charge $400, you will gross $10 per hour. At two parties per week, that's $20 per hour before paying business expenses! Wal-Mart pays better & has more benefits!!!

The 3x Rule

If you're leaving employment to start your own business, a common guideline states that in order to maintain your current pay rate you must multiply your current wages by a factor of three. This means that if your business is grossing $20 per hour, the adjusted rate based on the 3x rule is $6.67 per hour. $6.67 per hr x 40 hrs = $266.80 per week x 52 weeks per year = $13,873.60 gross income before taxes. Did somebody say "Would you like fries with that?"

Retirement

To retire in 20 years with $1 Million (which won't be a lot of money by then), you must invest $1,317 into a tax free account every month that bears 10% interest for 20 years.

Job Description

As professional mobile DJs we are: Announcers, Masters of Ceremonies, Music Programmers, Audio Technicians, Event Planners, Coordinators, & more. How much would these individual professionals charge for each service? An MC alone commands between $300 - $1,200 per event.

Price Comparisons

Based on a wedding reception with 200 guests held at a Upstate NY hotel, a reception coordinator goes for $1550, a cake ranges between $300 & $1,500, meal service averages $6,000, gratuity is $1,080, & sales tax is $1,550 for the day. At $400, a professional mobile DJ is a steal.

The Pie

In 1995, the estimated national average cost of a wedding day was $18,000. The average cost of music was $910. Today, the total cost is more than $25,000. If your fee is only $400, not only is it less than 1995's average for music, but your "piece of the pie" is only 1.6%. Are you responsible for only 1.6% of the events success?

Scarcity

There are 52 weeks in each year. Most events happen on the weekends, usually on Saturday. Most are wedding receptions & are somewhat seasonal, this limits the time a DJ has to create income. Hotels plan their years around these seasonal trends & factor in an occupancy percentage ratio to fit their budgets. They don't depend on filling all the rooms to make ends meet. Anything over that "ratio" is considered a good year. How many events can you do in a year?

Talent

Not everyone can successfully DJ a party. Most people do not have the music knowledge, technical skill, sensitivity, motivational ability, music programming savvy, announcing skills, etc to do a professional job. Most people can't read an audience. In other industries, talent & knowledge warrants a premium fee. Would you go to a cut rate cardiologist???

America's #1 Fear

The no 1 fear in America today is public speaking: getting up in front of a crowd & talking on a microphone. Sound familiar? Not everyone is willing to do what we do routinely. In other industries, this fact alone dictates a high value added fee. Would you become an underwater welder for $10 per hour???