How Are Economic Changes Effecting Your Karaoke Business At The Start Of 2009?

[RIKKI TIKKI]

Jim,

The economy & bar business around here is upside down. Bars with poor management/ownership have suffered because of the smoking ban, added pressure from the " blue meanies " stalking the parking lots, and liquor prices that keep going up.

I'm on the Arizona/ Mexico border south of Tucson about 65 miles. Most of my bars and night clubs that I gig in are medium size ( 50 - 100 capacity ). I have built shows where I don't move around much. I see ownership and management changes but my shows usually survive new ownership if they have checked the books, they understand that Karaoke night(s) pays a lot of the bills/payroll that the other nights (DJ, Ladies Night, Pool Tournaments, etc.) can't match. I don't charge as much as I should, but then again there is little competition from other KJ's in this area. My prices have remained the same since I started 15 years ago, and I foresee no changes as long as the bar and me both make money.

I used to manage a bowling center, and it had a small lounge that was under used, so I hired a KJ to come down from Tucson, better than break even for the business. Then another KJ moved into the area, and I hired him as he didn't charge mileage and turned out to be better, and the Karaoke night got bigger until we were at capacity ( actually over full ) and the boss was thrilled to see the lounge make some money for a change, and all was good for about 6 mos, then this KJ moved out of town and I decided that I could run the show if the boss would buy the equipment. We struck a deal where he put up the money to buy the equipment, and I would be the KJ, working the shows for free for 2 yrs, and then the equipment would be mine!

I left the bowling business a few years later, and took my show to another venue as a part-time thing, and before I knew it I was booked 3 or 4 nights a week around town, and holding down a full time day job. It got to be a strain on the day job, so I cut back to 2 shows for about 7 or 8 years with the ocassional private party, wedding, thrown in, when I chose to do them. I was turning down a lot of private parties because of my contracted gigs, and not wanting to get the KJ burnout again.

The economy around here revolves around the Mexican produce industry, and border tourism. One is seasonal about 7 - 8 months out of the year, and all the businesses used to hibernate for the other 4 -5 months that depend on the produce season. So while the season is here, everything is groovy and the $$$ flows freely, then it ends and everyone tightens their belts and waits for the next season to return. So we're used to seeing swings in the economy around here, and the produce and satellite industries haven't felt the pinch that most of the rest of the country has felt. In that respect we are lucky.

Then there's the bar's that sometimes dont know how to survive in the interim, or try to open while the season is gone, and don't make it past the first year or two. We have alot of added police presence that has the bar patrons scared to come out and booze it like the old days, and the no smoking ban has run a few people away from the bars, and the tourism has felt the economic turn down, so most of the bars are complaining. My Karaoke nights are still packing the places, and I know that Karaoke is like blue chip stock ( stock market? ). Everybody has a good time at my shows, no matter if they just watch, dance, or sing. Whatever comes in the door I can entertain, no matter if they are eight or eighty. We all should feel blessed that we can provide a service that makes almost everybody happy, and get paid for it! Good Luck, and be prosperous!

Rick
Rikki Tikki Karaoke

[marklwood]

I can tell you in my area (SW Missouri) the bar business has taken a pretty big hit. My business is down 15% from last year. The beer companies have told me their overall business is down 10% and has shifted 25% to the package stores away from the bars. I am lucky that I have been in business for a long time and know how to trim the overhead. Out of the 25 bars in my town, 4 have closed in the last 6 months. I still have 2 employees, but if worse came to worse, I could still do it myself with a cordless headset. I don't see myself going to that extreme, but I could if I had to. In my first 5 years of business, it was just me. Then, thanks to karaoke, I have had to hire employees.

[billyo]

over the years that i've been playing ( 10 yrs. in a band as a guitar player over south east asia ) and moved to united states, i started doing karaoke when everybody was still using cassette tapes i accumulated a bunched of gears, replaced old gears with new ones, i ended up with big 12 speakers, ( 2 and 3 ways speakers, 4 subs, and 7 amps ) spent closed /over $12,000,not including my newly acquired Mackie set-up, laptops etc., about 6 months ago i was doing a private party around Miami , Fl. someone asked me if i have any equipments for sale, jokingly told him i'm selling all the stuff he sees on stage( except my laptops ) for half of what i paid for, 2 weeks later he called me up and wanted to buy everything, i sold it to him, not knowing or thinking that he'll be doing the private parties i've been doing for people in Miami for yearsfor less than i was asking... now back to karaoke, i've been playing at this restaurant/bar ever since they opened ( almost 4 years now ) they were supposed to renovate the place and that didnt happen, and now they are asking me if i could play for less money, i told them i would, since playing karaoke is not main source of income, ( i knew the owner )but when they told me that i would only be getting a percentage of sales that night, and i have to pay for my tabs, which i never did before, and now they also wanted to raise the price on drinks the reason for these was they are not making enough money, to make long story short, i'm not playing there anymore...so now i'm only doing small private parties( karaoke/djing ) around West Palm Beach, Florida for less hours and same money when i was doing karaoke

[muzicman144]

I do a one man show, w/guitar, piano. Have been for 20 years, starting using backup tracks when they were on cassette. Stopped the road travel five years ago. Play mainly military and/or private clubs. Used to be alot of Karaoke competition, but with things down, i have found where i play, most demand is for shows such as I do. Matter of fact, they are paying more now for my type of show than before, and cutting out any karaoke that isn't quality. The better class of Karaoke shows here still have work, but the less professional karaoke shows are really suffering. The people who frequent these clubs that i play tend to be older and would rather dance than watch karoke. I am offered more jobs now for more money than before the crunch.
I know I am more than fortunate that things are this way, and, at a time like this. I didn't expect it.
I do beleive karaoke is here to stay and a great outlet for everyone.
muzicman

[WDEWDAD7]

Well, I can say that the economy has had an effect on the bar business, and has had a trickle down effect on just about every other aspect. I am now no longer at a place that I had been running karaoke for over eight years. Business slowed down, people just could not afford to go out as often, and prices went up. There has also been an influx of people buying computers relatively inexpensive and then free downloading their songs, then getting multiple systems and offering to work on a.....sliding scale. It's the old "I will work for free for the first or second night, then we will see" or, I will work for $75.00, and the club owner pass a percentage more, if the bar rings up more." I have stayed consistent with my rates, but, it makes it tough to compete against people that just...POP in for little expense. Sorry, if I offend anyone, but, over the years, I have quite an investment in this business. I have been in the entertainment business for 40 years. I was a traveling musician, then came off the road and played. Bands went through hell for a period of time. It got very cut-throat. When I was 18, I was making $500.00 to $600.00 a week, for 4 night, plus my meals and room. When I more or less quit playing, in Spokane, it was a struggle to get $25.00 a night; because bands would work that cheap. When I first started running karaoke, I was running karaoke during the week, and playing in a band on weekends. BOY, did I catch hell from fellow musicians. They said I was a traitor, and I hurt THEIR business. Actually, I just combined the two. I had a wife and daughter to support. Well, I digress...sorry. Yes, I have definitely seen the economy effect this business. Daryl.

[bryant]

Originally Posted by RIKKI TIKKI

Jim,

I'm on the Arizona/ Mexico border south of Tucson about 65 miles. Most of my bars and night clubs that I gig in are medium size ( 50 - 100 capacity ). I have built shows where I don't move around much. I see ownership and management changes but my shows usually survive new ownership if they have checked the books, they understand that Karaoke night(s) pays a lot of the bills/payroll that the other nights (DJ, Ladies Night, Pool Tournaments, etc.) can't match. I don't charge as much as I should, but then again there is little competition from other KJ's in this area. My prices have remained the same since I started 15 years ago, and I foresee no changes as long as the bar and me both make money.
Rick
Rikki Tikki Karaoke

Although there is another thread on this, how much do you charge, may I ask?

[RIKKI TIKKI]

Originally Posted by bryant

Although there is another thread on this, how much do you charge, may I ask?

Sundays - Thursday ---- $50 / hr
Fri, Sat, Private Parties ---- $75 / hr


Rick
Rikki Tikki Karaoke

[bryant]

Originally Posted by RIKKI TIKKI

Sundays - Thursday ---- $50 / hr
Fri, Sat, Private Parties ---- $75 / hr


Rick
Rikki Tikki Karaoke

How many hours a night?

[RIKKI TIKKI]

Originally Posted by bryant

How many hours a night?

My current gigs are 4 hrs. ( I have a two hour minimum ). Have never done less than 3 hrs, even though my publicity fliers state that minimum for all gigs.

Rick
Rikki Tikki Karaoke

[billyo]

i got a call from the owner of the rest./bar where i used to play and i had a talk with the owner, he suggested that if i could charge a dollar for every cust. that wanted to sing,( just like they do in asia ) they will just pay me the diff. i thought about it for a minute and since doing karaoke is not my main source of income , i decided not to take the offer, i have friends that come in every fridays ( i only play 1 night a week ) and spent a lot of money on beer , food and wine and i can't see myself charging them..and if i do word will go around that i charge people to sing and thats's not cool..i am now thinking of just throwing in the towel, give up playing in bars, i'll just do private paries, ( i wont do weddings though )

[muzicman144]

I look for the karaoke clubs to go to the Machine that plays a karaoke song w/video screen and sound set up that sells for about $3,000, has about 30,000 karaoke songs, and do away with the karaoke host. Just put in your dollar and sing.
muzicman

[bryant]

Originally Posted by RIKKI TIKKI

My current gigs are 4 hrs. ( I have a two hour minimum ). Have never done less than 3 hrs, even though my publicity fliers state that minimum for all gigs.

Rick
Rikki Tikki Karaoke

Yes, but are these gigs that you play at , are they every week at the same place and keep your equipment at the place as well?

[RIKKI TIKKI]

Originally Posted by bryant

Yes, but are these gigs that you play at , are they every week at the same place and keep your equipment at the place as well?

I'm Mobile, with setup & tear down every night!

I have found that the change in atmosphere by switching venues increases my base of regular singers, and allows for the show to have fresh faces that wouldn't necessarily travel the 20 +/- miles to the 3 gigs I currently play in!

I base out of Nogales, then travel 20 miles east to Patagonia, or 10 miles north to Rio Rico. Different crowd of regulars in each place, and thus don't allow the show to die due to overkill.

The Nogales gig I've done for 13 years, the Rio Rico gig is a Resort, where I did 3 years at the golf country club, then they asked me to move to the main hotel property where I've been for the past 3 years, for a total of 6 years, and the Patagonia gig is in limbo this month while they are changing ownership and remodeling to increase the size. I took over that show 3 years ago from one of my proteges that left the Karaoke business. I have been lucky enough to have a waiting list built up for the 3 nights that I presently allow myself / Wed-Fri-Sat ( I bowl Mon & Thur - Ha! ), but like I tell them when I contract to them, you've heard the rest, now you have the best! Building the show takes cooperation and commitment from the management and the Karaoke host, and that can only be done over the long haul, and if they are not willing to help me promote, and commit to things that my standards dictate, then I am wasting my time and their money, and the show will not prosper, and neither of us will make money!

You have to sell the sizzle at the beginning, and then be able to back it up by doing all the things that you promised! I feel my longivity has been perpetuated by being honest upfront, and delivering a first class package that allows the venue to make money. Advantage goes to the professional Karaoke host if you don't try to place your shows where they don't belong!

If you can't compete with a Karaoke jukebox - you have chosen the wrong line of work! Did I mention that it is alot of work, and not for the fly by nights, and the thin skinned, or faint of heart?

Rick
Rikki Tikki Karaoke

[madjim- with the Lord]

Originally Posted by bryant

Although there is another thread on this, how much do you charge, may I ask?

Hey Bryant,
You've always said that you were in one of the poorest areas in the country. Seeing any changes in Maine?

Jim

[Bi-Polar Bear]

I'm in North Carolina and adversely effected by the economic downturn although I also work as a live musician and business is sill good there...except of course that the first quarter is always slower.

I have seen my karaoke business go way down however and I think one of the main reasons here is that there are a million mom and poppers out there who give away the service. I will stay home and collect welfare before I start my truck for 100.00 or 150.00.

I have worked as a touring musician, dj/kj, events planner and games and rides provider in the private, corporate, club and college market for over 30 years and I can tell you that in the Southeast they are motivated by cost and it is a very cautious market. They will hire an operator with two ten inch speakers and 1000 songs in their books over a true pro to save 25.00 a night.

the economy will turn around and those of us who have chosen to make their full time living as entertainers will ride it out. I've had some super highs and low lows in my life but on the whole the fact that I've never put on a power tie and headed out on I-40 to work at 6:30 am with the rest of the pack makes it all worthwhile.

[muzicman144]

Again, I think this downturn of economics is not necessarily a bad thing for this business. First, it weeds out the "pretenders", helps "some" of the talent buyers realize it takes a first class product to lure enough customers to "make" it. I'm willing to bet there isn't anyone in this business, that is a true talented entertainer, that's really worried about going out of business. I haven't advertised for twenty years, only got a business card two or three years ago, and don't solicit work. Business is good and picking up. I play from Va-Florida. I don't give out what i make, but it is above the average i hear mentioned on this forum. I have seen this business change from playing only Wednesday and maybe a thursday (live bands played on fri-sat) for peanuts, to playing five -six nights a week. I believe the live 5 piece bands will suffer along with the lesser talented KJ/DJ. For the pro's out there, hold steady with your prices, as you draw the crowds. For the lesser talented, learn this trade, get the right equipment and compete on a " professional" level.
Hope i haven't insulted anyone, as, as this is one entertainer's view only.
muzicman

[bryant]

Originally Posted by madjim

Hey Bryant,
You've always said that you were in one of the poorest areas in the country. Seeing any changes in Maine?

Jim

Only a little, but not so much in the bar business. As I've said before, there isn't much money around here at all anyway. I have noticed that the drinkers still always go out and find the money to spend on drinks, even those without jobs. They always find a way to get drunk, that's what a lot of ppl around here are good at, and those are the ones that don't work, usually. The normal working person, around here, maybe comes out a little bit less, but those were the type that didn't go out that much to begin with anyway.
The thursday night gig at Applebees that I've been doing for three months and barely breaking even there was just starting to pick up just a little. The corporate mgt. said that they are to close anything down that they are putting out money for even though they were making a lil bit on karaoke, the other applebees in the area were running in the red. But, they said they're gonna call me in the Spring. Funny, too, the place was packed that last night. Another bar called me this morning and asked if I was available this Thursday. Just lucky, I guess.

But, you know, I can't remember a time in history where there wasn't some kind of economic slowdown going on, or some kind of recession coming, or some kind of recession were in. I mean really, do you really ever remember a time where a new (or in-office) president ever said "Boy, times are really good right now, I think we're all set". It seems like every point in history has been a "not so good time right now to spend money", and the cost of this or that will be going up and ppl will be losing jobs.

In fact, I'm thinking right now of retiring from my regular fulltime day job as a teacher with full benefits, including dental and eye care (a 100% paid) and decent salary (for Maine) working only 8 months a year. I'm 58. Iwould be retiring at 61 anyway.

I'll just gig a little more during the week where I have been taking it easy and perhaps promote a few more wedding gigs too.

[ddouglass]

Bryant just out of curiosity just what do you teach?
By the way retired life is great! I am in an area like yours where it is a down economy all the time. Too many people are out of work with little to no industry in this area at all. So nothing really new here except higher prices for food. Those who do work have to drive to Houston or Beaumont to work. They all need some entertainment and drinks on the weekend and we only have 2 1/2 bars in the area (the half is an Amvets club with limited membership). We play at one place (VFW) on Friday and Saturday and I won't set foot or equipment in the other. Too many fights, drugs etc in that one.
Since we only play the two nights to supplement our retirement income and not looking for more I really am not feeling anything or the recession except for slightly higher prices and that really is nothing new.

[bryant]

Originally Posted by ddouglass

Bryant just out of curiosity just what do you teach?
By the way retired life is great! I am in an area like yours where it is a down economy all the time. Too many people are out of work with little to no industry in this area at all. So nothing really new here except higher prices for food. Those who do work have to drive to Houston or Beaumont to work. They all need some entertainment and drinks on the weekend and we only have 2 1/2 bars in the area (the half is an Amvets club with limited membership). We play at one place (VFW) on Friday and Saturday and I won't set foot or equipment in the other. Too many fights, drugs etc in that one.
Since we only play the two nights to supplement our retirement income and not looking for more I really am not feeling anything or the recession except for slightly higher prices and that really is nothing new.

I teach Biology, Dale. I was a mechanical engineer in an electric power company before that; got layed off. 1994.

Sort of getting tired of explaining to parents why their kids who have never even opened a book are failing their classes. Administrators make up all these new ways to teach, and cliches like "kids don't have the right to fail", and la-di-da. I spend more time in workshops and seminars then the kids do in class, and I work for a very strict private school. AS everyone knows, nothing much will change if only one side of a relationship(student/teacher in this case) is willing to make changes. High schools in our country are more like a social event, aren't they. I wonder how it would be if education was extra-curricular and we had to ask the coaches if a kid could be excused from a game to attend class. I'd rather not complain about anything, so leaving the situation puts me out of the loop where complaining won't even be necessary.

I think there are plenty of jobs around here for 5 to 7 dollars an hour, but most ppl think they are too qualified for those jobs and apply for those they are not at all qualified for. The others make excuses and just choose not to work.

I'll be in the same boat you're in soon. Just adding on to security income.

[ddouglass]

I taught Electronics for 8 years and know teacher burnout when I see it. I fully understand what you mean about student apathy and it doesn't stop at High School. I taught for 3 years at a junior college level and the kids were the same way, even though they were paying a lot of money to fail their classes.