Last time, we discussed the pitfalls we encounter negotiating with clients. We also need to talk about how to quote “standard” rates for what you do. While I wish I could just put up a chart, this is a complex subject, and varies with location, experience and market. There are some things we can do to get this under control, however.
Find out what others are charging for a type of service. This may require some research and questions of people working in your area. For example, if you have a wedding band:
- What is the range of prices for receptions in your area?
- What do the agents charge and what percentage do they mark up the band?
- How long are the gigs, and how is overtime handled?
if you are a freelance musician:
- What is the typical pay range for the type of gig you are doing? (restaurants, weddings, corporate, tours etc)
- Are there surcharges for travel, excessive cartage etc.?
If you are doing recording sessions:
- Do you get paid by the hour, day rate, or by the song?
- What are the typical hourly, daily, and per song rates?
- Rates are typically different for demo, indie release, label, and corporate sessions.
One of the biggest mistakes musicians make is to charge a low “introductory” rate to get into the scene. While this might seem logical, the results can be unpleasant:
- Your low rate will drive everybody’s price down artificially low. Now everybody is making less because of you. It will be hard to get the support of your fellow musicians under these conditions.
- You will have a hard time getting your price up to a reasonable level, since you established the low number. Better to start at the professional rate.
- Higher paying work will go to somebody else, because you will have labeled yourself as the “bargain.” When people hit the lottery jackpot, they don’t go out and buy a Kia.
- You may think that if you are young and inexperienced, you should charge less than the veterans. Instead, let them set the “premium” rates if they can get them.
Be Prepared
A dangerous moment: somebody asks you, “What do you charge for X” and you don’t have a number ready. What will happen is that you will stumble around as you try to calculate your bid, which looks unprofessional, and you will inevitably come up with a low number, based on panic. Instead, have your standard rates ready for all the things you do.
- I have rates for lessons, solo piano, band gigs, sessions of various types, mixing, mastering, arranging etc.
- I am aware of the factors that can change the rates: travel, cartage, rehearsals, technical issues, excessive hours etc.
- I ask questions before bidding: Hours, conditions, equipment, other musicians, location, attire etc.
- I have formulas for groups: X$ per man per hour, plus leader fee. This way I can calculate quickly based on the size of the group and the hours.
- I have a good idea of how long it will take me to do certain tasks such as mixing, based on the complexity of the music. This way I can estimate the hours needed and provide a quote.
The Song that Never Ends…
One issue that comes up is the decision whether to work by the hour or by the piece.
- Generally, if the end time is controlled by the client, such as vocal recording or band tracking, I recommend charging by the hour, since a package price could become very low if the project drags on. This also gives the client an incentive to move things along.
- If, however, you are working on your own, I suggest charging by the finished piece or by the finished minute. This is more typical for mastering and composition. The reason for this is that as you become more efficient, you will end up making less for the same job.
- Doing session work by the song can occasionally be troublesome if you are working with people who don’t know what they want; you may end up spending a long time helping them find it. By the time you are done, your hourly rate is woefully low.
Some gigs, such as custom composing, are harder to bid based on the vagueness of the concept. Often I have a number in my mind of how much it is worth to me, based on an internal hourly rate I use. If I am approached about a project, I will guess at how long it will take, and that will give me a general idea of a full price. I also have a number below this for the least I will possibly take.
However, I won’t reveal that quote right away. Instead I will ask them “What is your budget for the music?” and see if I can get them to give me a number. This allows me to know how serious they are. If they don’t even know where to begin, I will give them the full price, and see how they react. If they have “sticker shock,” it may be that I am too pricey for them. If they truly can’t make that price, I will move towards my minimum. At this point, it is a good idea to watch for the dirty negotiation tricks we talked about last time.
- Have a way of calculating your “standard” price for a negotiable gig.
- Know what questions to ask so you understand the parameters, and you won’t get a surprise.
- Ask them for a number first.
- NEVER drop below your minimum price; you will resent the gig, and lower everybody’s rates.
- It is OK to not take a gig if it is below your rates. This is your prerogative as a professional.
Questions:
Do you have standard rates ready for everything you do?
Do you know what the range of rates people charge in your area?
In another article, we will discuss the “Gig Stealers” and how to deal with them…
©2012 Randy Hoexter
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