Re: Working for Cheap
I agree with the sentiment to a point. That said, the comparisons of McDonalds and Ruth's Chris aren't completely fair. Both are two large corporations one is definitely ''super-sized'' while the other is at least nationally reknown. This allows them to span several local markets and syphon off moderate profits from many places. A sole proprietor does not have this luxury.
Another thing to consider is that while I probably could start up an even cheaper version of McDonalds, I probably couldn't do it without violating FDA regulations. The sound business doesn't have this problem, hence bottom-feeders.
That said, if you are a bottom feeder, and you grow, eventually you run up against other problems, such as DOT regs and other complications, mainly put in place by federal or state regulatory bodies. It makes it very challenging to grow and establish a company, and these are non-market forces.
I also think there is a big difference in the price scales between sound production and photography. Most (good) wedding photographers are charging between $2500 and $6000 per wedding. They do 30-40 weddings a year and make a pretty decent living. The overhead is pretty low (requiring about $10k in equipment, tops) the ROI is good on the most expensive parts (lenses) though poor on camera bodies but
the camera doesn't matter anyway right? And the fixed costs are pretty manageable with digital photograph (Internet connection) and you have an advantage with variable ones (on-line storage, prints, CDs) cause when you buy in bulk those items generally get cheaper.
For live sound, if we are talking about just making a living at on your own, pick your salary, add 50% for benefits, expenses and 10% of that total for reinvestment.
Divide that by the number of days you want to work in the year and that's what your gigs should be paying. Obviously, the salary part is very flexible, and you have to be realistic about it. But let's just take the national average. Wikipedia puts the median at about $50k and assume 5 work days, a mix of weekend gigs with other Public Address type stuff during the week, figure four weeks vacation, so 220 gigs a year (wouldn't that be nice).
So your revenue has to be $75k + expenses + 10%.
Quick breakdown of yearly expenses:
Fuel (figure average 50 mile commute to gig) $6400 (assuming 12MPG in a truck of some sort)
Supplies (gaff, XLR cables, expendable items) $10 per gig avg $2200
Repair and maintenance (vehicle and equipment) $1000
Business Loan for equipment and vehicle (maybe you already own the equipment, but you have to pay for it some how, so you ether spend this much on average per year on replacement gear, or have spent it on what you have already) $8000
So grand total, that's $92,000 + 10% = ~$102,000. Divided by 220 gigs is about $500 average for a gig.
Now everyone knows, keeping a steady pace of 5 gigs a week would probably be difficult. And a $50k salary isn't bad, but it's not the best thing for what I consider a pretty tough job. I've probably left out a bunch of expenses so maybe it's a little more. That said, I've found with pricing around that ballpark, there is just not even close to enough work, and that's not considering the ''real'' bottom feeders. We got guys that will do a local stage a festival for $200-300 a day and others that will bring a large 4 KF850/SB1000 per side rig from 80 miles away for $800 (with consoles, and outboard)!
