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Managing Your Entertainment
Part III: Focus on the Finances of DJs
By Ray Ford
Yes, it's true, there’s no business like show business! What we also
must remember, though, is that entertainment is a vital part of our
business and therefore must be managed.
Recorded Music Entertainment
The most popular form of nightclub entertainment today is DJ/recorded
music. It’s estimated that as many as three-fourths of all club
operators in our industry who present music as entertainment use
recorded over live. There are benefits when using a DJ, including the
following:
1. Cost — an operator can hire a DJ for a month for about the same wages he pays a band in a week.
2. Consistency — the operator feels that he can maintain a more
consistent music presentation (format) by using a DJ/recorded music
format.
In reality, it’s not quite that simple. Let’s take a closer look at what else the recorded music concept means.
The DJ
 If you owned a restaurant, it would not be in your best interests
to hire a part-time chef. Further, you would not benefit by hiring the
lowest-priced chef knowing that experience means better quality and a
more consistent product. A full-time, experienced chef is what you look
for. He or she costs more, but you know your product standards will be
met which allows you a better chance for meeting your sales and bottom
line potential.
The same logic does not always prevail in the bar/nightclub business.
Management needs to set higher standards here. Look at your DJ as the
person who can make or break you. Having the best DJ is similar to
having the best chef.
Consider this — many restaurants recruit chefs from out of the area. If
your market is soft in this area, then hiring a really good chef would
give you an advantage. (When I assisted with developing and opening the
Waterfront in Cincinnati, we found and recruited a DJ from Cancun,
Mexico.) The point here is you don’t have to go out of the country, but
don’t let the lack of qualified people in your market keep you from a
quality recorded music format. The right DJ does exist for you, maybe
in the next town.
Get out and do some R&D. Look around in good club cities such as
Houston, Atlanta or Phoenix. There are lots of markets doing quite well
in developing new DJ talent. If you feel you need some assistance,
contact Wyatt Magnum at CMS in Houston. He’s the best in the business.
Of course, there is another method that works. Build and train your own
DJs. Look for a solid citizen, a person with solid traits, a good feel
for your target clientele, a desire to grow and be successful, a
willingness to follow direction, take on responsibility and devote long
hours to work. A person with these priorities is trainable.
I’m suggesting an attitude toward your entertainment coordinator, your
DJ, like you have for your manager — a person who plays a vital role, a
full-time role in your business. The right person I’m talking about is
worth more than $10 an hour. This person could be looked at as a
salaried person with specific duties and responsibilities, like a
manager.
Some time invested and a few more dollars a month often produces a
superior product (music program and presentation) that produces more
sales for you. Develop a specific job description and a well-defined
task checklist of duties for the DJ.
Throughout the years, I’ve made a lot of money for myself and my clients using this 10-point concept.
1. MUSIC MENU — You and your management staff develop with your DJs a
specific music menu (format) for your target demographic clientele,
whatever works for your situation. You all will decide what music you
will play and what you will NOT play.
2. DAY PART YOUR FORMAT— Have one format for lunch, one for Happy Hour,
one for transition or dinner hour and one for late night.
3. PROGRAM MUSIC IN SETS — When I first created this concept, I got a
lot of flak from DJs and some operators who believed that the way to
judge a DJ’s performance was based primarily on how packed the dance
floor was during the night. To some extent, that’s true, but not
entirely. Start the set at around 100 Beats Per Minute (BPM) and build
the energy (BPMs) over 40-45 minutes ending up at more than 130 BPMs.
Then, turn the dance floor. Break the music set and start over with a
killer slow song, then 100 Beats Per Minute and begin to build again.
Repeat this concept all night. Build energy, make them sweat,
turn the dance floor, sell some beverages, make the cash register ring.
4. GET CREATIVE — How creative is your DJ with his music presentation?
With all the sampling in music today, DJs scratching and the fact that
many DJ systems are placing more emphasis on CD music and less on
vinyl, I feel that DJs in general have become less creative with their
music presentation, especially with regard to mixing music. However,
there is a growing trend among creative DJs who are going back to
vinyl, using old school mixing techniques. You’ll find a nifty page of
old school mixing techniques online at digitalDJstuff.com/DJmixing.pdf.
5. RECORD INVENTORY — Get involved in the process of buying record
product for the club — records that you own and not the DJ. (Not many
chefs own the food they cook or bring it from home to the restaurant.)
Set up an account at a record store or distributor. Budget an amount to
be spent each month. Hold management and DJs accountable for what’s
bought and what’s played in the club. Subscribe to Billboard magazine
and follow the charts posted digitalDJstuff.com.
6. DEVELOP A PLAN — Get your DJs and your managers involved together in
planning and executing promotions. Insist that they be done
professionally. Remember, everything you do in a club today should be
considered entertainment. The better the entertainment, the bigger the
crowd, the better the sales.
7. INCENTIVES — Try incentives. They work. They produce results if they
fit Ken Blanchard’s formula from “The One Minute Manager.” He suggests
incentives that meet “Smart Goals” criteria: specific, measurable,
agreed upon, realistic and trackable. Develop sales goals. Perhaps your
manager and DJ could share a common bonus pool. They win when you win.
Note: A major side benefit to this kind of management thinking is
reduced turnover. If you’ve got a good, strong management team, work at
keeping them. Long-term stability means long-term profits. Tie
performance into pay.
8. BE SPECIFIC WITH DJ PERFORMANCE — Playing music too loud can cost
you sales. I was a club DJ for many years. As aware as I was of the
consequences, many times in the booth, I could not tell if I was too
loud. Knowing that, I welcomed feedback from management on my volume.
Volume needs to be managed. Lots of operators today use a Sound Level
Meter to assist in keeping the sound levels right.
9. SET UP STANDARDS with DJs and management on how you want your lights
to be operated. Lighting is a complex yet highly profitable tool.
Manage your lighting. The proper way to work the lights is
individually, in sync with the music, not just on, all lights flashing,
all the time. Insist on a payback for your big-investment lighting
effects.
10. DJ SPOKESPERSON — If you feel that your format should include using
the DJ as a crowd motivator, an MC, a person to sell your promotions,
your products, services, etc., then set standards and manage them.
Examples would be: Use of cue cards to sell promotions, products,
number of times (approximately) per set for Rap, what’s acceptable to
say, what’s not. A DJ with a believable gift of gab can help you make a
ton of cash. NCB
This is an except from Mr, Ford’s best selling book, "101 Ways To
Make The Cash Register Ring!” Bar/Nightclub Management & Marketing,
To order or learn more, click here: http://www.HospitalityIndustryResourceCenter.com.
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