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The Basement
Competition: fair/unfair
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<blockquote data-quote="Dave Rickard" data-source="post: 84435" data-attributes="member: 305"><p>Per,</p><p></p><p>A parallel to my situation is if the Norwegian Govt. started a sound company for govt. events. Makes sense for those events, but they don't actually have to make a profit because their funding is already provided. They can afford to work for "free". </p><p></p><p>Their insurance, their vehicles, their fuel, their rigs, their buildings, their accountants, their attorneys, their attorneys, are all provided by the govt. </p><p></p><p>Consider how cheaply you could provide in that non-realistic situation!</p><p></p><p>Later, they start taking non-govt. shows and charge half the going rate because they can afford to. And they "make money" doing it. They will undoubtedly cost you clients, and lower the rate that promoters expect to pay. It's a serious market changing situation.</p><p></p><p>It could get really bad if you angered the wrong people and they decided to actually target your business and intentionally went after your particular clients. Would you, and could you, instantly cut your rates in half to keep them? How long could you afford to do that? (pretty extreme example, but it could happen)</p><p></p><p>Does that make more sense?</p></blockquote><p></p>
[QUOTE="Dave Rickard, post: 84435, member: 305"] Per, A parallel to my situation is if the Norwegian Govt. started a sound company for govt. events. Makes sense for those events, but they don't actually have to make a profit because their funding is already provided. They can afford to work for "free". Their insurance, their vehicles, their fuel, their rigs, their buildings, their accountants, their attorneys, their attorneys, are all provided by the govt. Consider how cheaply you could provide in that non-realistic situation! Later, they start taking non-govt. shows and charge half the going rate because they can afford to. And they "make money" doing it. They will undoubtedly cost you clients, and lower the rate that promoters expect to pay. It's a serious market changing situation. It could get really bad if you angered the wrong people and they decided to actually target your business and intentionally went after your particular clients. Would you, and could you, instantly cut your rates in half to keep them? How long could you afford to do that? (pretty extreme example, but it could happen) Does that make more sense? [/QUOTE]
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Competition: fair/unfair
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