We Remember The Magic Café We Remember
Username:
Password:
[ Lost Password ]
  [ Forgot Username ]
The Magic Cafe Forum Index » » Tricky business » » Are we pricing ourselves out of business (0 Likes) Printer Friendly Version

 Go to page 1~2 [Next]
amazin
View Profile
New user
13 Posts

Profile of amazin
With gas prices, time, costs of props ect. are most magicians charging too little?
ClintonMagus
View Profile
Inner circle
Southwestern Southeast
3999 Posts

Profile of ClintonMagus
There's an old saying that goes something like "sell it below cost, but make up for it in volume". Having taken Economics in college, I can guarantee that this won't work.

Once you have decided what your profit should be, you have to allow for expense increases. You'll probably seldom have to explain your fees, but if you book repeat business and the clients asks why you cost more than last time, just point her to the higher cost of fuel, etc.
Things are more like they are today than they've ever been before...
TroyRoark
View Profile
Loyal user
Springfield IL
282 Posts

Profile of TroyRoark
We charge what we percieve our individual value to be. The real question is: Do you think your show is good enough to charge an amount that can cover your costs, and give you an accpetable return?

We can blame our lack of profit on a lot of things, gas prices, too much compeition, etc. But all excuses come back to one thing: What are you doing to make things better?

Personally, I never blame a lack of business, or the decline of my bottom line on anything or anyone but myself. If I'm not making enough money, it's because I'm not doing enough, or having enough foresight to see problems before they arise, and responding accordingly.

They've been talking about $4.00 a gallon gas for months now. Did you respond by adjusting your prices? Are you coaching your clients to let them know that the cost of business is going up? Are you improving the quality of your show so clients percieve a increase in value for your show?
tacrowl
View Profile
Inner circle
Maryland
1633 Posts

Profile of tacrowl
Quote:
On 2008-05-07 11:51, TroyRoark wrote:
We charge what we percieve our individual value to be.


I agree totally with that statement. I also believe a lot of acts fall into what they believe the the market will pay - or try to fit in a range others are charging. The question is - how did the others come up with that figure? Same way?

What most entertainers, magicians aren't exclusive to this, fail to remember is their fee should be based on expenses PLUS time. Expenses being everything required to do business, phone, internet, advertising, postage, vehicle, repairs, gas, office supplies, lights & electric, you get the idea. Then, how many hours does it actually require to do the work, type up and send out the contract, practice the set, map out the destination, travel to and from, set up, wait time, perform, etc. You need to make a profit on your time - it's the one thing you can't replace.

If expenses go up, prices go up - it's a business. If you don't make a decent profit you will not be in business long.
Tom Crowl - Comedy Ventriloquist

ComedyVentriloquist.com

Learn-Ventriloquism.com

Image
Bill Nuvo
View Profile
Inner circle
3094 Posts or
2747 Posts

Profile of Bill Nuvo
Quote:
On 2008-05-07 11:23, ClintonMagus wrote:
There's an old saying that goes something like "sell it below cost, but make up for it in volume". Having taken Economics in college, I can guarantee that this won't work.


Did you study Walmart, McDonald's, the dollars store explosion? Note: I am not saying to sell yourself below cost, I just thought the statement above was funny.
RobertBloor
View Profile
Inner circle
The Socialist Republic of the USA.
1051 Posts

Profile of RobertBloor
Quote:
On 2008-05-07 09:58, amazin wrote:
With gas prices, time, costs of props ect. are most magicians charging too little?


Yes.
Regardless of economic conditions.

Robert
"That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government,"
-The Declaration of Independence
Destiny
View Profile
Inner circle
1429 Posts

Profile of Destiny
One hidden problem for the self employed is that many tend to compare what they are paid to what employees are paid, think they are doing well comparatively, but wonder why they struggle.

The comparison should not be to what employees are paid but to what they cost their employer.

The biggest shock I had when I started managing a niteclub a decade ago, was when the Financial Controller sat me down and showed me what each employee cost per hour as opposed to what they were paid.

I quite honestly believe that unless people are a little taken aback by how much you charge, you are charging too little to have a successful business. Many entertainers cave in too easily to perceptions of being 'too expensive'.

What don't people complain about the price of? Bread, milk, alcohol, restaurants, cars, houses, the movies, drugs, sex - everyday, everywhere - folks complain about the price of these things being too high but still usually pay that price.

Make sure your show is worth a decent price - and charge it!

Destiny
TheDean
View Profile
Inner circle
Reno, Nevada
2164 Posts

Profile of TheDean
Tah Dah! - Good answer!
Dean Hankey, *M.D. - The Dean of Success Solutions!
Serving & Supporting YOU and Your Success!
"Book More Shows... Make More Money... SERVE MORE PEOPLE! - Not Necessarily In That Order…"

(*Marketing Doctor) Smile
Review King
View Profile
Eternal Order
14446 Posts

Profile of Review King
You go Destiny!

What a great answer!!
"Of all words of tongue and pen,
the saddest are, "It might have been"

..........John Greenleaf Whittier
Dannydoyle
View Profile
Eternal Order
20658 Posts

Profile of Dannydoyle
Make sure your show is worth a decent price, charge it, and DELIVER MORE, and you will never be wanting for work.

ALWAYS deliver more than they think they are paying for, and NO MATTER WHAT THEY PAY, they feel as if they got the best of the bargain.

In the end you end up with an almost PERFECT economic transaction. YOU are happy with what you are making, and they feel as if they are getting more than they are paying for. What could be better for business than that? It assures a stream of quite happy customers saying things like, "He may cost you a bit more, but WOW is it worth it". Resulting in some great work for you.

This has alwyas been my position. Notice how it completly avoids selling on PRICE ALONE.

Sorry short rant over.
Danny Doyle
<BR>Semper Occultus
<BR>In a time of universal deceit, telling the truth is a revolutionary act....George Orwell
Ken Northridge
View Profile
Inner circle
Atlantic City, NJ
2312 Posts

Profile of Ken Northridge
There have been several threads on price recently so I thought I’d jump in.

Wouldn’t you say that all of us are getting paid exactly what we are worth? If you listen to your customers—and by listening I mean their reaction to your show, their actions when they are paying you, etc.--they will tell you if you’re charging too much or too little.

I did my first paid gig over 30 years ago (12 yrs. old) for $2. My client was quite pleased with my performance. So my next show I raised my price, and so on. We are in an inflationary period right now. It costs me more money to buy gas, advertise, send out mailings, and feed my family. So, I’ve raised all of MY prices to compensate and my customers are still pleased with my services. (Yes, I’ve actually doubled my fee from 30 years ago. Smile )

If there were 10 magicians with the drive and talent that David Copperfield has, I believe there would be 10 magicians making 60 million per year. Why not? It has very little to do with current economic conditions and more to do with what YOU want to make, and the effort YOU are willing to put into it.

I know there is much more money to be had out there. I’m not ready yet. I know that. I’m making exactly what I’m worth right now, and I’ll bet you are too.
"Love is the real magic." -Doug Henning
www.KenNorthridge.com
todsky
View Profile
Inner circle
www.magicstore.ca
2351 Posts

Profile of todsky
I consider myself priceless, so I will be performing for free.
Todsky's Magic Shop: over 15,000 tricks, books, DVD s and Card decks. www.magicstore.ca
NJJ
View Profile
Inner circle
6439 Posts

Profile of NJJ
We shouldn't charge what WE perceive our value to be but what our CLIENTS perceive our value to be. It is then our job to shape that perception through marketing and quality to get the best price.
TroyRoark
View Profile
Loyal user
Springfield IL
282 Posts

Profile of TroyRoark
Allow me to change my verbage...

We all charge what we percieve our own value to be. It's human nature. If you think your show is worth $100, that what you're charging. I think mine is worth $400, so that's what I charge.

Now, I also think that through effective marketing efforts, we should convince potential clients that we're the next sliced bread... we just need to be sure we're targeting markets that can justify our expense.
Skip Way
View Profile
Inner circle
3771 Posts

Profile of Skip Way
Destiny, great answer. Another weakness with we self-employed blokes is that we fall into a comfortable rut and tend to stay there. We don't look at the conditions around us and think, "Hmmm...money's tight? How can I add value to my show to keep up?" We keep on doing the same ol' thing that got us this far without looking ahead. Business & markets change often and the successful among us change with it. The rest sit back and ask questions like "Are we pricing ourselves out of business?" Smile
How you leave others feeling after an Experience with you becomes your Trademark.

Magic Youth Raleigh - RaleighMagicClub.org
RJE
View Profile
Inner circle
1848 Posts

Profile of RJE
If I might add the value of 2 cents to the discussion, I would like to point out two things.

First, that there is the constant need to educate the client on what value is.

Second, regardless of what you may think you are worth, and you may well be worthy of your expectations, you cannot price yourself out of the market.

And now I'm off to sell my props to get enough gas to get me to my next show.

Rob
Destiny
View Profile
Inner circle
1429 Posts

Profile of Destiny
Quote:
On 2008-05-08 11:36, Skip Way wrote: Another weakness with we self-employed blokes is that we fall into a comfortable rut and tend to stay there.


Totally agree but I'd be out of business in a flash if I allowed myself that luxury. I live in a town of 120,000 people. 400 kilometres south is another town just a little larger. Between here and there are small rural communities - the same inland. To the East is ocean and North one of the least populated fertile areas on Earth. I must get repeat business if I don't want to spend a lot of time away from home.

The challenge both keeps me on my toes and keeps life interesting.

Destiny
NJJ
View Profile
Inner circle
6439 Posts

Profile of NJJ
I'm not sure the comparison with MacDonald's and dollar stores is apt. Here are some major differences to consider

1) You're product is better. If you are the dollar store plastic comb of the magic world you need to work on your act!

2) They have the ability to provide QUANTITY. We can only do a finite number of shows per week. Even if we the maximum number of shows we run the risk of running ourselves raggard.

3) Walmart etc. sell comparable products with other retailers. I.e. people are prepared to buy a $1 box of salt from Walmart because they know it is much the same as a $5 box of salt from a more expensive retailer.

We should sell ourselves as premium service. We are cavier. We are yachts. We are shiny new sports cars. And we should be priced accordingly.
Destiny
View Profile
Inner circle
1429 Posts

Profile of Destiny
Quote:
We are shiny new sports cars.


Can I be the cherished vintage model? Smile
Bill Nuvo
View Profile
Inner circle
3094 Posts or
2747 Posts

Profile of Bill Nuvo
Quote:
On 2008-05-08 21:31, Nicholas J. Johnson wrote:
I'm not sure the comparison with MacDonald's and dollar stores is apt. Here are some major differences to consider

1) You're product is better. If you are the dollar store plastic comb of the magic world you need to work on your act!

2) They have the ability to provide QUANTITY. We can only do a finite number of shows per week. Even if we the maximum number of shows we run the risk of running ourselves raggard.

3) Walmart etc. sell comparable products with other retailers. I.e. people are prepared to buy a $1 box of salt from Walmart because they know it is much the same as a $5 box of salt from a more expensive retailer.

We should sell ourselves as premium service. We are cavier. We are yachts. We are shiny new sports cars. And we should be priced accordingly.


Read note in my first post. I am not disagreeing with underselling ourselves. I just thought the comment was funny and not accurate.
The Magic Cafe Forum Index » » Tricky business » » Are we pricing ourselves out of business (0 Likes)
 Go to page 1~2 [Next]
[ Top of Page ]
All content & postings Copyright © 2001-2021 Steve Brooks. All Rights Reserved.
This page was created in 0.18 seconds requiring 5 database queries.
The views and comments expressed on The Magic Café
are not necessarily those of The Magic Café, Steve Brooks, or Steve Brooks Magic.
> Privacy Statement <

ROTFL Billions and billions served! ROTFL