The Disco Price Formula
The Price Formula
Working out how much you need to charge for your mobile disco service.
Add up the number of bookings you did last year (A)
and also all your expenses (B). Include music, repairs, vehicle costs,
insurance (include PLI!), advertising, roadie and equipment purchased.
If you spend roughly the same amount on new equipment each year include the total figure, otherwise use a percentage of this figure (33-50%) and include the same percentage in next year’s calculations.
Divide the total of all your expenses (B) by the number of gigs you did (A) and you have your costs (C).
Next, you need to decide how much you would like to earn per hour (remember this bit is taxable). Take into account not just the disco hours but client meetings, preparing for the event, travel, set-up times, waiting around etc.
Add this to your expenses (C) and you'll have a good indication of what you should be charging to make your disco financially worthwhile.
- Total gigs (A) = 100
- Total expenses (B) = £5000
- Total expenses per gig (C) = £50
5 hour disco, 2 hours prep, 1 hour travel, 1 hour set-up/breakdown, 1 hour waiting time = 10 hours
10 hours x £15 = £150 + £50 (C) expenses gives a total of £200. With your earnings coming to about £120 net.
A more realistic figure may be £25 per hour (£19.00 after tax/NI). A total of £300 with your actual earnings totalling £190 net.
If you want £40 per hour (£29 after tax/NI) the total is £450 from which would earn you £290 net.
Of course you could charge a different hourly rate for travel etc. and another for DJing but, whatever system you choose, as long as you're earning the amount you want and you've taken into account supply and demand for your area, you should end up with enough work at a price to suit both you and your customers.
There will be some readers who are of the opinion that they could never earn more than they do at present. There are others who are charging the same now as they did ten years ago because they believe that their business would suffer if they dared to raise prices. If you're content with the way things are that’s fine; if not, review your pricing structures now.
By this time next year you may be pleasantly surprised with the outcome.