Karaoke Mailbox
We’ve been swamped with business lately, mostly due to Blarney’s, Longhorn, and some surprise jobs, and I finally had a chance to go through some mail.
Khris from New York writes….
I enjoy reading your blog about the karaoke KJ business. I am an aspiring DJ/KJ trying to get into the business in the NYC area. I am still in the process of getting my equipment together and networking with bars and venues. It would be a great help if you could answer some questions for me. For example, I know every gig is different but some broad spectrum of pricing or what to charge would be really appreciated. Also, what are some good karaoke mics for under $100. thx for your time -khris
Well Khris, looking through my previous posts and articles, it appears you found something that I never wrote about, and it’s a very important subject when running a karaoke business.
First we’ll cover the dollars, then the mics. There are three main points that will ultimately decide your selling price, and I’ll try to make this as broad as possible to cover any other karaoke business located in other regions.
1) Amount of equipment and number of songs you have
2) What the ‘other’ guys are charging
3) The type of venue you’re playing
The first point is pretty easy, and it’s usually the standard metric used when comparing yourself to the competition and what they have to offer. Make no mistake about it, the equipment, transportation, and music is NOT cheap. Most venue owners don’t realize that, and usually frown on your price tag. DON’T be discouraged! Just beat the ‘other’ guys, and point number 1, will be handled.
The second point is very important, because this is where we find that balance between what the venue owner ‘needs’ and what you ‘want’. Lets say you’ve taken point number 1, and smashed the competition by spending $10,000 more on your equipment. Then lets say your competition is charging $350 to do a show. Looking at your equipment cost, you might think that charging $600 for your services is completely acceptable… but you’re WAY wrong! If the bar owner wants karaoke, then that’s all they want….nothing more. They won’t care that you have 10 wireless mics, two 1,000 watt subwoofers, four amps, and a gazillion songs. So pay VERY close attention to what the competition has (especially the song book), and beat them on their price structure. You’re the only one that can tell whether or not everything will pay for itself within a reasonable amount of time (i would shoot for a year though).
The type of venue - This situation came out of the blue a couple years ago, and we got dinged because we didn’t think it through. At first glance, you might think that KJ’s play just bars, but surprisingly you’ll find out that people will want you for weddings, birthdays, and many other occasions. First, set the same price for ALL bars. You might knock off $50 just to get your foot in the door on the first show (more on that later), then go back to your regular pricing. Also, birthdays and other odd-ball events could probably use the same pricing, depending on travel time etc.
For weddings tho, you NEED to charge more (we charge about $50 more), because you’re going to spend plenty of extra time getting all the required music, running little games, etc. However, if you’re like the service I work for, where we don’t have all the fancy lights and huge kickin’ system, then you’ll need to charge LESS than what a traditional service charges. Yes, it’s a very fine balance between all of these, but doing a little math will go a long ways.
Finally, as a side note, always keep in mind the travel time. Gas is way to expensive these days, so be sure to tack on some extra dollars for those long trips.
Let’s put all this together for a real life example - When we started out, we gathered about $6,000 worth of equipment and music. This included a small, yet expensive, trailer to haul everything around in. At the time, there was only one other person in the area doing karaoke. This person charged $125 for his services. However, we had four times the music, the equipment was much better, and James has some incredible hosting/mic skills. Knowing that a live band could cost anywhere between $500 and $2000, he set the price at $250 for 4 hours worth of work. Shows would run from 9pm-1am, and we’d toss in an extra half hour for free.
Obviously, there was a minor dispute about how much we charged as one owner knew he could get the other service for half price…. which happen to be someone he never used before. Needless to say, when the smoke cleared, our services have been the ONLY service to walk in those doors since then. Our price perfectly reflected what we ‘brought to the table’, versus what the other guy could offer and surrounding situations. At the same time, the price paid for the equipment in a reasonable amount of time.
For weddings, we charge $300, which is about $200 to $300 less than a traditional service. The price cut reflects the fact that we don’t have all the bells and whistles a traditional service has, yet the extra $50 covers the cost of finding all the songs requested by the couple (get that list ahead of time), and basically taking on a much more active roll with the party. Most people think it’s a fair price, while others wanna splerge and get the ‘big players’…. don’t let that get ya down, cause it’s normal.
With all that info, I’m certain you’ll nail that price down within 10 minutes. 
As for the mics - Finding mic’s for under $100 is pretty easy. Finding GOOD mic’s for under a $100 is extremely difficult. Make no mistake about it, a cheap mic (or cheap ‘anything’ in your setup) can cause many undesirable affects. Dare I say ‘Feedback’? So far, we’ve dropped the cash and gotten ourselves some Audio Technica mics. Mind you, these can get spendy, but hands down… they have been the best mic for the buck, so far. I very rarely EVER have to fight feedback, and the sound quality is excellent. Trust me… save your money, and get good mics. You will NOT regret it!
