price

Setting a Fair Rate

In my previous post I highlighted the importance of self-evaluation and knowing your worth as a performer. Now that we know the importance of setting a comparable monetary value for one’s work and how settling for low-paying gigs only brings more competition and frustration, this post will explore how to set a fair rate for an event.

Location plays a huge part in setting a quote that is reasonable to the client and fair to the performer. Having lived in major cities like Baltimore and San Francisco where cost of living is rather high, any quote for an event is going to be more expensive than it would be in a smaller city/town for an event of similar duration. For major cities like New York, DC, San Francisco, and Los Angeles, you’d be a fool to charge small town rates in the big city.

Flat Quote or Hourly Rate? There are benefits to giving a flat quote or using an hourly rate for events. Personally, I like giving flat quotes – it’s straightforward and I avoid itemizing charges in contracts like hours, breaks, travel, etc. I simply give a number and don’t hassle the client with minor details. This works great for weddings and gives the Bride-to-be one less thing to worry about. However, for a small concert or an event that needs background music for a specific amount of time an hourly rate may be more appropriate.

Part of setting a fair rate for an event is having a feel for how much you believe your performance is worth in the context of a reasonable budget. As I’ve said before, there’s always somebody willing to work for less. You need to command a higher rate to stand out – and also DELIVER THE GOODS! This means consistently playing your ass off, being social with guests/audience members, and being sure to take the time to thank the person who hired you – they’re providing you with work, and you’re providing them with an irreplaceable service: live music!

This link between the professional and social aspect of being a musician is part of why I prefer setting flat quotes on a per event basis. Breaking down an event to hourly rates tends to give the gig a feel of a transaction – paying for time as it is. Like putting coins in a parking meter. This can leave the performer feeling like a human jukebox and the client only concerned with putting enough coins in to keep the tunes coming.

To command a good fee, you need to go above and beyond simply playing for the allotted amount of time and this is something you want to make very clear to potential clients via your websites, emails, and phone calls. This is why I prefer to give a flat quote. Somebody emails me saying they need classical guitar for an event in a couple weeks. I email them back thanking them for their interest in my music and tell them I’ll happily play for them. I may only be playing an hour and a half, however, when I give a client a quote they know that also comes with my guarantee to arrive early, set up, provide my own amplification as well as set up a microphone if someone may speak at the event, plan the music program, and learn any song they may require for the performance.

This is where I differ from other musicians. In the same city for the same event, a lesser experienced guitarist may give that same event a quote based on their hourly rate. At $100 an hour for 1.5 hours total = $150. They may then include travel expenses or booking fees, all of which feels like getting a bill from Verizon or Direct TV rather than giving your client a personalized, all-inclusive musical package. It’s cheaper, may be easier to quote and convenient, but you’re basically selling yourself short. Lots of people may book you, and that’s not bad, but the main reason they book you is because it’s a cheaper option.

Breakdown This should serve as a guide for event price range and is my average of 75 gigs between 2012-2014.
• Short Wedding (less than 1 hour) $200 – $400
• Wedding and Cocktail Reception (up to 2 hours) $350 – 800
• Private Event (Wineries, Universities, Hotels) $400-1000
• Corporate Events – $400-1000 (my experience has been corp. event budgets are about 1k for music)
• Small Concerts, House Concerts – $300 – 600

These are the ranges that I use when quoting an event to give an idea of what is possible and as you can see there is room for flexibility. I was booked for considerably more weddings than anything else, and I’ve also had to turn down several events that didn’t align with my price ranges. When this happens, work with the client and their budget, however, if you can’t agree on a number you can always refer a friend who would love the opportunity.

Price Reflects Value

This is a point I’m going to make frequently on this blog.  Price is a direct reflection of value.  People are proud to pay in full for a 100k sports car – it shows off their worth.  People buy designer clothes not due to functionality, but due to BRANDING.  Why do you think H&M gets a away with charging $200 for a blazer, that is really just Indonesian cotton that is beat up and dyed an obnoxious color?!  (I will admit H&M does have great sales…but you get the point.)

If you consistently try to engage your competition a price war , the only thing you offer is a LOWER PRICE.  Price becomes your BRAND.  Think – what are some companies known for low prices – Walmart?  McDonalds?  Sam’s Club?  Their entire business premise is around practical goods or services at the lowest price possible.  What about high prices – Whole Foods?  Banana Republic?  Fogo de Chao?  These companies charge high prices for their goods due to perceived value and higher quality.  Value – whether real or not – and offering a higher quality of service is their brand.

As a musician you can use this concept to your advantage.  You want to be the Rolex of your field, whether playing a wedding or corporate event, small concert series, or doing a recording session.  You want price to reflect your value – not how low you’re willing to go.  There will always be someone offering to do the job for less.   Don’t worry about your competition’s fees – if somebody wants to pay Joe Schmo $100 to play their wedding, well, that’s their choice if they want the music for the big day to sound like a total hack job.  Instead, offer a fair price that reflects your value – and offer a superior service.  Be punctual, friendly, easy to communicate with and make the performance about THE AUDIENCE . 

In the coming posts I will detail exactly how I negotiate contracts and what you can do to leverage simple business concepts to your advantage as a working musician.