Price Negotiation

[jeff42]

This was NOT the way to do it.

A new bar asked us to play their grand opening in September. Even though we are playing as much as we would like to in September I said sure we can fit it in- we had it open but we were planning on having that day off.

So, I quoted them our normal asking price. I figured if they even come back with a price that's a little less we'll do it. Its the normal negotiation process. 

They came back with an offer that was HALF of what I asked. At first I thought of sending back a bitchy email but nah... I was nice. They apparently think they can get bands for next to nothing. I am sure someone will take the pocket change the low offer. Right now I feel we are in a good position to say No thank you to places who don't meet our price. 

When I talk with a new bar/club I usually ask what is the budget for bands cuz if they give me a number 1st we are going up from there. If I give a number 1st I know we are going down from there... Just didn't think we would go THAT far down. LOL

[Vito Corleone]

Price negotiation can be a tricky one.  It's like buying a used car or something sometimes.

We try to not tip our hand and ask what their budget is as much as possible.   But, as you probably know, sites like Gigmasters require you put in a bid before you can even start the negotiations.   So we usually do so with the caveat that "this is our average/standard fee for such an event, but give us a call so we can know the particulars of your situation, as the fee could be higher or lower depending upon your specific needs."

If we're anywhere NEAR their ballpark budget, we'll usually get a call back.   If we don't, then I figure we probably overshot the bid by a large amount and we wouldn't want to do it for that little anyway.

[RoadRanger]

You should have sent them a link to the worst band in the area (preferibly with video) with the message "I think these guys will gig for that - best of luck!" .

[jeff42]

when it rains... it pours apparently.

 

I just got a message from another bar in my area asking what we charge so I told him. He wrote this back to me:

THAT'S RIDICULOUS! I'LL PASS! I JUST BOOKED (INSERT TOURING EAST COAST BAND HERE) FOR MUCH LESS!!!!!

 

 

I really want to reply with either

"sure you did"

or "they should be asking alot more."

 

[StratGuy22]

Someone asked about my band. I told then the rate. They said "oh, well we only have $500" I said "no problem, here's a few DJ's you might want to try"

 

We would go down maybe $100 but that's about it.

[Chicken Monkey]

I think I mentioned a while back that I went through a streak where we got talked UP from my initial offer.  They were both situations where I thought I was being generous to an good cause (old folks home, fundraiser for a local festival) and they wanted us during non-peak hours, but the bookers had a budget they had to blow through, or risk cutbacks the following year.

[tim_7string]

 

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jeff42 wrote:

 

if they give me a number 1st we are going up from there. If I give a number 1st I know we are going down from there... Just didn't think we would go THAT far down. LOL

---

 

That's pretty much how I think as well. Some clubs around here won't budge on price (we pay bands $XXX, take it or leave it), while others will be more willing to pay a higher price if the perceived value is higher. There have been a few times where I was about to quote a price, but let them tell me what they usually pay and it ended up being a bit higher than what I was going to quote.

One of the bandleaders around here uses a simple philosophy on how to negotiate price. "If you want to get paid more? Ask." It's not exactly that simple (he has a lot of contacts and is a smooth operator), but I have been effective in getting my band booked about as much as we want to, up until recently when one club kept moving our dates around.

[tim_7string]

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StratGuy22 wrote:

Someone asked about my band. I told then the rate. They said "oh, well we only have $500" I said "no problem, here's a few DJ's you might want to try"

 

We would go down maybe $100 but that's about it.

---

Lol! That's a good response. Not too snarky.

I'm a firm believer in holding your ground on price. Obviously, I'm not going to charge a dive bar $2000/night. That's just crazy. But I'm also not going to play for half of what our usual price is either. That just encourages more bars to get bands for next to nothing.

[StratGuy22]

If we played a gig for $500 word would get out and we'd never get our rate again. Plus we bring a lot of production with us, and can't really go with much less, and don't want to.

[tim_7string]

 

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StratGuy22 wrote:

 

If we played a gig for $500 word would get out and we'd never get our rate again. Plus we bring a lot of production with us, and can't really go with much less, and don't want to.

---

 

Yep, exactly. Right now, my band has been around in the public eye for 2 years, 4 months. The lowest paying gigs are in-town bars, places that bands seem to be fighting over (probably because it's in town). One of them is trying to sell their bar and stopped having bands during the summer for the second summer in a row and the other one has been juggling bands around at the last minute, cancelling their gig in rotation and giving it to another band. Due to these factors and the fact that the pay is minimal anyway, I'm going to start phasing out these places and just stick with "our" price. The bars will either hire us or pass, but this will be the next step in moving up in price for us.

[mstreck]

 

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StratGuy22 wrote:

 

If we played a gig for $500 word would get out and we'd never get our rate again. Plus we bring a lot of production with us, and can't really go with much less, and don't want to.

---

 

Bingo.

[StratGuy22]

I do sound on the side and I'm actually getting into DJ'ing, heaven forbid. You'd be surprised at how well it pays.

 

I have different packages.

 

SOS, iPod input

Small setup lights & sound

Bigger setup, lights and sound

Biggest setup lights and sound

Band

 

Our band is at the top of the price heap. I'll personally make a lot less, but it is a much more fun gig. I always throw the idea in with the rest of the prices.

 

 

[mstreck]

We are seeing more and more of the "we pay $XXX" and they won't budge. For two newly booked rooms, their $XXX is $100 less than what we'd normally charge, so we're trying it out. Another place is $150 less, and is basically a one-time shot to "prove ourselves" and we'll get our regular rate after that. Honestly, I don't see us going back there after the first gig.

We stopped playing one place when they changed managers and tried to cut our price in half. So did a lot of other bands. Most recently, they told a band we know that they don't like the type of music that they play (laid back, Sublime, etc.) so they won't be coming back. Apparently, they always had a crowd, but the bar didn't like them. I guess they have an endless supply of bands that will play for that super-low $XXX.

We're reaching out to a few agencies to see if we can hop on board and avoid the entire booking mess. I don't know if that's going to be good or bad for us. 

[mstreck]

 

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StratGuy22 wrote:

 

I do sound on the side and I'm actually getting into DJ'ing, heaven forbid. You'd be surprised at how well it pays.

 

 

 

I have different packages.

 

 

 

SOS, iPod input

 

Small setup lights & sound

 

Bigger setup, lights and sound

 

Biggest setup lights and sound

 

Band

 

 

 

Our band is at the top of the price heap. I'll personally make a lot less, but it is a much more fun gig. I always throw the idea in with the rest of the prices.

 

 

 

---

 

I tried the DJ thing a couple of years ago. I think I lasted two or three gigs and I wanted to stab my brain with a pencil. Never again.

But I do like that you try to work the band in there. How do they feel about being undercut by a DJ when that DJ is you?

[StratGuy22]

I generally don't go looking for band gigs, that's not my dept. I do sound for the band. I like doing sound for the band. I like loading in, setting up, playing, tearing down and going home.

 

I don't like schmoozing, getting gigs, getting paid etc etc. I was getting enough inquiries and passing their names on to other DJ's when I realized it was a revenue stream that was passing me by.

 

I add the band in there as an option. Usually people have a price in mind, so my band will be too expensive for them. But if I can serve their needs as a DJ, then why not. It's not much different than passing them on to someone else.

[Vito Corleone]

 

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StratGuy22 wrote:

 

Usually people have a price in mind, so my band will be too expensive for them.

---

 

 

Yeah, it's good to be out the price range where DJs would be an option for people.  For bands that are trying to work for just a couple hundred more than what a DJ charges....that would be a tough one.

Do you find yourself doing many gigs where you provide BOTH services?  Where you DJ during the breaks and/or after the gig?  If so, how much more do you charge to add the DJ service?

[StratGuy22]

Haven't yet. I just started DJ'ing. Done a couple school dances and 4 weddings. Haven't started advertising for it yet. Still working on the website.

 

[tlbonehead]

 

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jeff42 wrote:

 

 

This was NOT the way to do it.

 

A new bar asked us to play their grand opening in September. Even though we are playing as much as we would like to in September I said sure we can fit it in- we had it open but we were planning on having that day off.

 

So, I quoted them our normal asking price. I figured if they even come back with a price that's a little less we'll do it. Its the normal negotiation process. 

 

They came back with an offer that was HALF of what I asked. At first I thought of sending back a bitchy email but nah... I was nice. They apparently think they can get bands for next to nothing. I am sure someone will take the pocket change the low offer. Right now I feel we are in a good position to say No thank you to places who don't meet our price. 

 

When I talk with a new bar/club I usually ask what is the budget for bands cuz if they give me a number 1st we are going up from there. If I give a number 1st I know we are going down from there... Just didn't think we would go THAT far down. LOL

---

 

my reply is usually the same. I just tell them that it wouldn't be fair to the other venues who pay the going rate and have been keeping us busy. I always try to leave it with a friendly, "we'd be glad to play for you if you want to book something, but that is the rate".