Posted tagged ‘supply and demand’

Explaining The Downside to Everyone Learning How to DJ

February 7, 2014

Note:  As someone who started DJing late in life, I hold no animosity towards newer people entering the game. This blog just states facts.

As technology creates an easier path to DJing, the world now contains more DJs than ever.  Yet,  a downside exists.

Borrowed from theguardian.com.

First, let me explain supply and demand.  Let’s say only ten people in the world knows how to DJ.  Yet, there’s a heavy demand for their services.  As long as some people can afford it, these ten DJs own the ability to charge extremely high rates.  The less available a product or service, the more you can charge…if the demand remains high.

Over time, more and more people learn DJIng.  As this goes on, fearing future competition, some DJs may not want others learning the craft.  Next, technology creates easier accessibility to DJing, creating even more DJs.  As more and more DJs enter the arena, rates go down.  As the supply rises, the price lowers.

I’ll be honest with you, I do not know if veteran DJs charge cheaper rates now.  Yet, I do know one thing.  The oversupply of DJs inspires venue owners to find the cheapest DJ available.  Many times, the arrangement involves offering free drinks instead of paying money.  Desiring to play, many DJs fall for this, just like I did.  A DJ doesn’t like the offer?  Another DJ will gladly grab it.  If an oversupply of DJs didn’t exist, many venues wouldn’t get away with this foolishness.   With a shorter supply of DJs, the cheap venue owner would be forced to pay more money, especially if high-paying patrons demand a DJ.

Now, we see the downside of everyone learning how to DJ.  Because of the oversupply,  pay rates for DJs go down.

Of course, standing-out lives as the DJ’s most powerful weapon.  Refuse presenting mediocre skills and more money follows.