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Bill Nuvo Inner circle 3094 Posts or 2742 Posts |
Howdini is retiring and mentioned not being able to compete with lower charging acts.
My question is, I have always charged a little above what I felt comfortable with and nothing to do with competition prices. Yes it is lower than some and higher than others. I have had arguements with others who wanted everyone to be charging roughly the same price. I call that price fixing and it isn't good for the shopper. Now I know that there are people who are new and beginner and charging little as per experience. I have 23 years experience, yet I am lower than other proffessionals with the same experience. Am I a bottom feeder because of the lower pricing? I offer an incredible high calibre show at an affordable price. Am I wrong? Isn't competition a good thing. Don't I have to feed my children? I am very ethical when it comes to other magicians rights, not chasing their clients etc...What is ethical here? |
tommy k Regular user 144 Posts |
I may draw some criticism here but my answer is that ethical is doing what is right in the absence of inspection.
If you are pricing your shows in accordance to what the market will bear I don't see a problem with it. If you drop your rates to remain competetive, I don't see a problem with that either. I think it is the person that just comes in incredibly low to get the gig (and probably relies on other income other than just performing)that I have a problem with. I also have concern about the person that charges premium rates just to give the appearance of being better because they cost more. I have heard DJ's arguing that you start at the top and work down from there. I also know for a fact that these guys are back working 8 to 5 jobs becaused they priced themselves right out of the marketplace. Stay honest and do the right thing (this includes feeding your family!) |
Skip Way Inner circle 3771 Posts |
I find myself in this same position. I used to ask myself "What would I pay for my services?" This rarely worked because I pinch a penny until it screams "Clark Howard!" My father-in-law offered this "formula"...charge in line with the market and what you're comfortable with...then, if 25% or more of your private shows tip you, they're telling you that you're worth more than you're charging. Raise your rates accordingly. If you receive one or two tips per ten shows, you're about where you should be. If the tips stop, watch your bottom line. You may want to begin offering some extra premiums or services to increase the perceived value of your show. NEVER lower your fees...INCREASE THE PERCEIVED VALUE TO MEET EXPECTATIONS!
Odd as it sounds...this "formula" works extremely well for me. The "scientific" nature of the forumla removes the guilt I sometimes feel at "overcharging" my clients. A few years ago, it was nearly impossible for me to break through my $100.00 mental barrier until I began using this concept. I'm rapidly approaching that $300.00 barrier with barely a whimper. Life is good! Skip
How you leave others feeling after an Experience with you becomes your Trademark.
Magic Youth Raleigh - RaleighMagicClub.org |
Bill Nuvo Inner circle 3094 Posts or 2742 Posts |
That's kind of what I have done Skip. It's a great formula. And it tells you exactly what the market will pay. My pricing ranges from $125 for birthdays to $1500.00 for an hour and a half stage show (more than just me). My small stage shows run $300.00 + for 1/2 hour. The only pricing which I think is really cheap is the stage show price, compared to others. The birthdays, the market won't pay much more than $150.00 for birthdays.
I have been getting a lot of advice from Timothy Drake lately and it is working on increasing my prices in some areas. It's also relevant in my DJ business also. On the net I get emails about DJing with people who only budget 3-5 hundred. I charge accordingly. Even though I know some companies who charge close to $1000.00. Frankly I think that is way too much to charge for DJing weddings. I mean it's not like you are beatmixing and scratching and showing skills at a wedding! |
rhinomax Regular user 188 Posts |
Your magic is a product and we all need to price according to what we feel the market will bear
It always seemed odd to me on one saturday you can do a couple bdays make a few hundred bucks and the next be working an expo, fair, or stage show and make $600 and monday nite at the resteraunt $30-50 an hr supply and demand we all know when the phone rings its a crap shoot what you might get, you book a bday $150 saturday 2pm next town, 20 min drive 45 min work, not bad maybe you can fit a couple in a day. Then the phone rings and its the local prep school looking to book you for a faculty party could be big bucks what is the date and time, the same Saturday @ 2pm tough luck your booked .....supply and demand
NEVER UNDER ESTIMATE THE POWER OF THE FEW TO CHANGE THE WORLD "THATS USUALY HOW IT WORKS" MARGRET MEAD
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