Publicly Pricing

[GrahamHorgan]

Hi Everyone.

I'm just wondering why we don't publicly state our prices? Some of the reasons I've be told is because...

Other competitors will see it and slightly undercut you.

Due to time of year, such as Peak Season, how formal it is and location. Will vary the price.

Would these be the two main reasons? The reason why I'm asking is because, we've all had people about to book us and then drop out because after hearing the price. This is why I would like a customer to have a price list before they get deeper into planning.

Since there's so many variables. Would something like a base price list work? For example. Weddings: 200 P/H. Within a 35km radius. Additional fees will apply outside of this.

Just wanting to know a little more in depth why don't we post public. Thank you.

 

[RealityOne]

1. There are a lot of factors that go into pricing a show - length of show, travel distance, size of audience, type of show, add-ons (e.g. balloon twisting for a kids show);

2. People may just shop around for the lowest price assuming all magicians are the same;

3. Having people talk to you before you quote a price allows you to talk to them, establish a relationship and explain how hiring YOU is a their best option.

Marketing is about differentiation. Differentiation leads to a premium. That is why people pay more for a name brand product over a generic store brand (and why generic store products try to develop their own brand - like the "Kirkland" brand for Costco).

Disclaimer - I don't perform magic shows for a living. My experience in marketing is as an attorney seeking clients. When I talk to potential clients, I explain to them how I would handle their case and what they should expect in terms of what will happen and what I will do. In my explanation, I highlight my experience, my philosophy in litigating cases and how I will help them succeed. Then, after the call, I send them a detailed estimate. Hopefully, when I hang up the phone, the goal is that they want to hire me and understand that even though hiring me will be expensive, it will be worth it. Around 80% of clients I talk to hire me.

I'd rather do 80% of the work at 100% of my asking rate than do 100% of the work at 70% of my rates. As an example in magic, that means doing 8 shows at $200 ($1,600 for 8 hours work) than doing 10 shows at $140 ($1,400 for 10 hours work).

That said, there are times in a career where it makes sense to be at the lower end of the price range. If you don't have a lot of experience, your audience will be disappointed at your rate. If you are just starting out, you may need to book more shows to get your name out there. If you don't have a lot of shows booked, it is better to spend an hour making $140 than sitting at home making nothing. That being said, I would set a higher rate and give a percentage discount ($200 for the show, but I have a 20% discount going for shows booked between now and June). That way, when you start getting more shows you don't increase your price, but decrease your discount.

 

[WitchDocIsIn]

He said it better than I could have.

The reason I don't post my prices is pretty simple - I think it's kind of tacky, and it speaks to being a service industry.

I sell a specialized experience. People can't say, "Well Charlie McCardTricks only charges $100 for a party!" because Charlie isn't doing what I do. If their main concern is pricing, I'm probably not the guy for them anyway.

Most of my advertising is word of mouth. People see me do a show, and they want to have me at their event. Once they know what I do, they understand my pricing. Whereas if they just saw my pricing without understanding the unique style being offered, there's a solid chance they'd pass me by (because they'd be working on what the people in this region think magicians are, which is not flattering currently)

 

[RickEverhart]

David nailed this post. I'm not recapping this, but will just give you a small piece of information on a scenario that I deal with. Being in an IBM ring with all members within a half hour radius means there are about 20-25 of us magicians competing for business in my area. If I publicly post my rates yes, every single one of them may try to under cut me even though we are all friends. It's the nature of the beast. What I do is make sure that I use my expertise to show why my show is different and what I can do that the others cannot, thus charging the hire rate.

Do they have a background check? Oh they don't? Hmmmm....well I am a school teacher and have 18 years of experience working with young children and have a background check from the state.

Did they offer balloon twisting services after the show? Oh...they didn't? Well I can and for an extra $25 will stay and make sure each kid gets a balloon animal before leaving.

Do they guarantee that your child (the birthday child) will get to come up on stage and be the hero of the show by performing in one of the main effects? Oh...they don't? Hmmm....

You get what I am doing here. You have to stand out and promote/market why you deserve the rate you are asking compared to the guy who is trying to undercut you.

If I publicly just post my rate, the client doesn't get a chance to hear me say all of that. They will "assume" they are getting the same magician for a lower price.

 

[GrahamHorgan]

Thank you @RealityOne, @ChristopherT and @RickEverhart. It's a good thing I asked this question. I've learnt a very valuable lesson here. It makes a lot of sense. I would hate to post my prices publicly now knowing this. I love how RealityOne put it. To do 80% of the work and get 100%. But right now I'm in that stage of life where I'm getting my name out there. So right now, I am doing 100% for 80%. I'm still in my first year of performing professionally. So as you know, there's lots of kinks im working out, rewriting scripts, expanding my skill and experience. Only over time I will define who I am and my show. Then I can explain why hiring me is your best option. May I ask, how many years experience would you think it would take to be at that level? 3-5? I would love to hear how long it was until you felt you had your own unique style and magic that you can offer to the client and explain why you are their best choice. I understand, we should be always striving for that approach. But I'm assuming you have to get passed that stage of "just starting out".

 

[Justin.Morris]

It's not so much about number of years before you get to a certain level, but rather it matters more -how many shows have you done, and are you growing as a performer. For instance, I have been doing paid shows since 2001, but part time, and in recent years, I have bulled back because of my changing family needs. So my skill level doesn't change as rapidly as yours might. Some people also just aren't as gifted and need to work harder to make progress. To be perfectly honest, I am on the cusp of making my own style. I've done a handful of years of my first thoughtful scripted show and now have a new direction I want to go. I still need to write the new show, but I'm still growing. In a lot of ways, I feel like I have learned a lot of things and am past the starting out stage, but in other ways, I feel like I'm really just at the bottom of the mountain I'm about to climb.

As far as marketing goes, think about it like writing a resume. If you don't have much work experience, but you have a lot of education, then you highlight your education. Or perhaps you have a lot of relevant work experience, but you didn't do any post secondary, so then you make sure your experience is at the top and highlighted. - basically, you have strengths and you should highlight those. Only been performing for 7 years? Maybe don't highlight that. Instead talk about your strengths - your unique style, your professional demeanor, the ease of the booking process, your integration of the kazoo and bagpipes in your show, your party packages, you fantastic balloon twisting skills, your ability to connect people with each other, how you will make the birthday kid feel like a star, your sense of humor etc.
Play to your strengths because you have them even with only a little experience.