Economy - Signs of life?

[BillESC]

Perhaps it's a local thing but ESC has never been busier.

 

This past weekend we had a large sound system rental out for a church festival. I spent Sat. Sun. and Mon. in the ceiling of a local high school with 4 other guys and finished up a major contract. Today, the rental came back from the church and turned around with a couple modifications for Matthews Market Days.

 

Today we also finished pulling the 24 channel snake, speaker cables and video cables through the ceiling and walls of the First Baptist Church and picked up a deposit on a high end home AV installation.

 

Tomorrow through Saturday I'll be working my Rotary Club's Bay Seafood Festival and Sunday I have to go to another church to pick up a deposit for a large video installation.

 

Next weekend (18th.) I have an all day music festival to do S&L for followed the next weekend by the Steamboat Museum's Gala.

 

The first weekend in October has the first show of the RFA's season and 36 Chinese lanterns going in a tent for a wedding.

 

Basically, I don't have a weekend off till January. I'm not complaining, but I'm gettin' tired already.

[abzurd]

Any competitors go out of business recently?

 

Perhaps the "hobbiests" in the area couldn't afford to continue offering their services under cost and, throughout the food chain, the real companies are benefiting.

[kmart]

Not necessarily under cost, but you're thinking on the right track:

 

The climate of the past year and a half has certainly eliminated a number of businesses who weren't poised to weather that kind of financial challenge, and it often can benefit those who were, providing they've got their acto together.

 

 

Where I work we're up ~28% for the year, tracking approx. 10% above our previous best year (2008), posted the best 2nd quarter results in company history (25+ years) this year, best July on record, etc. A lot of that is due to smaller competitor companies who were unable to stick it out going under, and that business coming to us, but they're still choosing coming to us instead of other competition...

[agedhorse]

We have been very busy this year but seeing a bit of a slowdown now. Hard to say really what's going on. Definately seeing the herd thinning a little.

[Unalaska]

I play bass and run sound. I'm working with the more expensive bands now than in 07. 07 was really my best year and busiest. 2-4 events per fri/sat and playing 4-5 nights a weeks (no PA or very little). Now I'm down to 1-4 events per weekend and playing maybe 1-3 times a week. BUT the money is up, I'm charging closer to what I'm worth and I can see the hard work I've put into the gear etc paying off. I got divorced in 08 and took a while for me to refocus and get back on the ball.

 

This year I haven't bought as much gear, for me buying a $500 case or $500 in processing isn't easy. I keep the rigs as small and profitable as I can (this is my day job, I have to eat too), i'm learning about auto repair, fixing as much as I can myself and cutting back on extra help. Last weekend I did 40hrs in 3 days, and that was only me with little help (I hired a friend to prep gear with me for an hour on friday morning). I know it's been getting worse as clubs close and other soundpeople are selling off or just putting it in storage. I'm not after thier gigs though, if they were doing well they wouldn't be hanging it up.

 

On a postive side in the last month I've seen 4 new clubs open up to live music. Not just on fri/sat too, 3 or 4 nights a week. I may not be working those gigs but it relieves pressure on the gigs I do. Keep the bar bands working and they don't sit at home on sat night trying to get your gig at the hotel ballroom. Besides, they wouldn't be happy doing that type of gig.

 

Summer is over, it's been a good solid summer with a nice looking september. October will be ok, december will flat out rock. I'm also looking at putting a system in a club but the pieces in the puzzle have to be right for me.

[Unalaska]

I'm looking at 09 stuff right now, I did 250 events in 07, 200 in 08. 135 in 09. 10 will be closer to 160. I'm small potatoes but that's the way it is.

[Unalaska]

I'm looking at 09 stuff right now, I did 250 events in 07, 200 in 08. 135 in 09. 10 will be closer to 160. I'm small potatoes but that's the way it is.

[W. M. Hellinger]

FWIW:

 

One reality check I have:

 

For the past 20 some-odd years I've been performing and providing production for a Labor Day Weekend shing-did... high-end affair, lots of planning, arguably "big-bucks", social who's who type event. The road to the "years in advance booked resort" goes through a state park... a nice, big, somewhat expensive state park. Did I mention this state park is big, and nice, and somewhat expensive... typically STUFFED with 40+ ft. RV's and cigarette class super boats and a 3 - 5 year waiting list? So... for the past 3 to whatever 5, 6, 7, 8... years ongoing... on Saturday afternoon when I cruise through said park... the 600 -800 camp sites were full... sign on the entrance "park full... go elsewhere"... or similar conveyance. Two years ago I noticed the customary "park full" sign was gone. Last year I noticed the park was like... tumbleweeds... folks waving to each other "hey... somebody over here!!!" This year... the park was basically abandoned... looked to be a few from up the Benewah van camping, hole-up and dumping their garbage and scavenging firewood... the camp supervisors looking for something... anything to do.

[BillESC]

Mark,

 

Don't get me wrong, my average monthly gross is half of what it was in 07. However it is up from 09 and seems to be growing almost daily.

 

It may have to do with the fact that I'm putting in 70 to 80 hours a week. Not really what I was planning on after I turned 60.

[MainEventSound]

We are way busier now than this time last year, and there is no sign of slowing down. I love this!!

[abzurd]

Not strictly production related, although we do that too with the private stuff. The band I run goes from May - end of October without a single weekend off for the first time in our 10 yr history. It's a mix of bars, weddings, corporate, private and community events. Overall the per show take is about 15% less than last year, but was a record year for us. Next year has about a half dozen shows booked, but they are all big ones.

[Axisplayer]

My business model changed about 18 months ago so looking at my long term history is not completely relevant. I will say that overall my income is up and my number of shows is down (voluntarily.)

 

We continue to get more frequent fly-in dates for increasing money doing corporate shows. I am doing less shows (50% less thank goodness) for more money overall on my Schedule C. I have spent about $10K this year on new gear and infrastructure, and will still be a profitable company.

 

Judging by the increase in frequency of high dollar shows, I would have to say that the economy seems to be rebounding a bit from what we can tell.

[jkm]

improving or adjusting??? Ax has been moving to more corp shows

thats a good model for cash less physical strain less damage

smart move when we get on in years, i think the corp gigs r the bread and butter of smaller companies.

 

cumunity gigs r paying less

bar gigs r slowing and paying bands less

local bands r carring some nice gear negating rental

needs cept for lighting

 

Markets change as do our bodys, corp gigs r boring without some band entertainment but a few grand for a nights work and having the right connections would make a 25 thousand invesment be a smart move

right now i think more young pros should shoot for this nitch

[gordonsound2]

I have seen a few community festivals disapear. Generally my mission has been "keep it lean" and do more myself.I have made some purchases but only" too good to pass up" or "gotta haves" way less" i want to try that or impulse buys also selling gear that isnt earning. Had several clients "ask for a deal" 1 especially I dropped the price $200 and 5 days of hotels and rented a RV from a buddy( looking to buy a trailer for next year). Everything has been for the most part last minute as far as bookings go. I have also seen more of the mentality of "Sure our current provider sucks but hes cheaper than you"

 

On the plus note i have seen clients ask for more delivered equipment as opposed to over the counter and rental them selved are up.

[Unalaska]

I'm sure Gordon and my areas overlap geographically and I can say for sure that the club scene has really taken a hit over the last few years. But it's really part of the larger decline that's been going on since the late 90's, so this last few years isn't anything special. The newer places are just not looking at entertainment as an economic answer to more business. which makes for this problem.

 

The people that know what they're doing are leaving the club scene, whether to work in another field or change thier business model (very few compared to those who leave). The people that take their place are less experienced and maybe it's me but I see/hear these bands/PAs and shake my head. Why? For example, on club started doing live music, the local soundguy "installed" a system. The club holds maybe 200, the band is basically on the dance floor, and the bar is 30ft from the back wall of the dance floor. The PA? 2 MRX525 over 6 (SIX) harbinger single 18 subs... PER SIDE! The dance floor can hold maybe 40-50 people with a band there. The stacks are 9ft tall and there is no way anyone in the club is on axis. So I expect music will sound bad, the club will cut it and blame the bands or live music in general. And in reality everyone lowballed in that place and no one made money.

 

sorry for the rant, it's hard to see these train wrecks in slow motion.

[W. M. Hellinger]

 

improving or adjusting???

 

This is, of course, the $6.5T question.

 

Heck... a flat tire isn't hardly even noticable if you drive slow enough across a plowed field.

[W. M. Hellinger]

It may have to do with the fact that I'm putting in 70 to 80 hours a week. Not really what I was planning on after I turned 60.

Humm...

 

I read a number of years ago that:

 

1) The average US hourly employee is on the clock for somewhere around 38 hours per week.

 

2) The average US salary employee is on the job somewhere around 60-ish hours per week.

 

3) The average US business owner is at work somewhere around 80 hours per week.

 

I know my fair share of US business owners who are hard pressed to honestly attest to being on task for more than 10 hours per week on average during the Bush and Clinton years... most of which are now creatively unemployed. The business owners who I know that are still kicking ass and taking numbers are those who have been putting in the hours all along.

 

You know the old saying: "The nice thing about working for yourself, is you can work all the hours you want, so long as it's all the time."

[BillESC]

Mark,

 

My referrence to 70 - 80 hours a week was actual hours in the field working on installs or pulling rental systems. It's now 11:10 PM my time and I've just gotten home from providing sound for the Bay Seafood Festival (got there at 10:00 this morning) I'm currently working my way through about a hundred emails. I have to be back there at nine tomorrow morning after setting up a sound system for the dedication of our county's new court house and a service call for a football field system we installed last year, (the new students don't know how to turn it on...)

[agedhorse]

To put it in perspective, working an 80 hour week is the same as having 2 full time jobs.

 

Also, if you retire after working 30 years at 80 hours a week, that's the same as working 60 years at 40 hours a week. Some folks prefer to get the time out of the way so they can do what they want to while they are still healthy. That may be to continue working of course. If the work is that enjoyable, it's no longer work.

 

I have semi-retired... I now work "only" 60 hours a week and dropping the last 20 hours makes every day seem like a vacation. I'm not all that far behind you guys.

[Dogoth]

I work for a Casino so what we do is basicly promotional (although a promotion that can't be eliminated without disasterous results).

 

Our revinues are down for the year mostly due to a big drop in the convention business. We did however have an 22nd anual event (sponsored by my employer) that broke all records. It's a Huge outdoor event entailing several nights of outdoor National acts (the headliner was Asia) and has a draw of probably well over 100k people over the week. We have shows booked in my venue through the end of the year and some into the next.

 

Yes I'm personaly feeling a bit more secure these days.

[W. M. Hellinger]

 

Mark, My referrence to 70 - 80 hours a week was actual hours in the field working on installs or pulling rental systems.

 

Well... there's work, and then there's WORK... and yea 70 - 80 hrs./wk. of WORK... well... that's tough duty when your shock absorbers are not what they used to be... and might not be cost effective in the long-run.

 

Like the song sez: "I'm not as good as I once was, but I'm as good once as I ever was"... I've gotta pace myself when doing real WORK... cause I just don't bounce back like I used to and paying for a day or two of real work is just too costly for me now.

 

Maybe the "problem with the hours" (if I'm reading you right) is that I agree with you Bill: I do believe these are times of real opportunity... because:

 

1) "won't work, don't try"

 

combined with

 

2) "many don't recognize opportunity when it comes their way because typically opportunity comes dressed in coveralls and looks a lot like WORK"

 

is leaving a lot of unclaimed opportunity out there... and one has to be careful when taking on unclaimed opportunity... especially at our age because we might be better at spotting the unclaimed opportunities, but there's only so many hours in a day, and only so-many horsepower-hours in a body.

[bassred]

I've been out of full-time production work and into an office job for 2.5 years now, just doing sound occasionally.

 

The company I work for has seen 30-35% year-over-year growth from last year, and we continued to grow through 08 and 09. Not that one retail website is an indicator of the economy, but I hope that it is a sign that things are on the way back up.

 

We are also known for our company culture and core values. I work with a team now that does consulting on company culture on a B2B basis. Over the past 11 years, this company has invested (spent) a lot of money focusing on the culture/employees and level of customer service we offer. I believe that having a brand people trust and taking care of people (internally and externally) has helped us to weather the storm. We had a rough year in 08 and saw some growth in 09.

 

If you are ever headed to the Las Vegas area, you can tour the office and see our unique culture in action! http://tours.zappos.com

[W. M. Hellinger]

 

a B2B basis

 

"B2B": Back To Basics?

 

If so, what would be an overview (and maybe some specific examples) of the "Basics" they get back to?

[bassred]

Back to basics is good, but I meant Business to business. We help other companies take a step back and look at the values that are important to the employees and the company and to create actionable core values. By truly living the values that come from the entire company, you can make a huge difference in the lives of your employees. Customer service/service levels easily increase because team members enjoy what they do and the company they work for.

 

Here are our core values. we hire and fire based on them. They are defined by us and lived by us.

 

Sorry to kick off a rant...

[TrickyBoy]

 

Any competitors go out of business recently? Perhaps the "hobbiests" in the area couldn't afford to continue offering their services under cost and, throughout the food chain, the real companies are benefiting.

 

 

I'll second this. No one wants to talk about it, but a down economy has a "cleansing" effect in every industry. I work in IT, and we're seeing the small, unqualified shops that low-bid everything go out of business in droves. The professionally run shop just acquire accounts and get stronger. Glad to see you're doing well:thu: