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PostPosted: Thu Aug 02, 2012 1:31 am 
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Smoothedge69 wrote:
The ONLY thing I have ever rented was living quarters. I have never, and will never rent a car or anything. Why?? There is nothing in it for me. With renting you are just putting money in somebody else's pockets. When the rental is done you haven't gained anything. You have spent money on nothing.
Why would anyone rent a car unless they are in another town without transportation. I don't know of any car dealer that rents - I know most will 'lease' and at the end of the lease will give you the option to roll that lease into a buy option using what you've paid into the lease toward the purchase.

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Plus, when you buy karaoke you accumulate a collection. After a while you don't HAVE to keep buying lots of karaoke, so your monetary output gets less and less over time, until you are just getting the occasional request material. With the a streaming service, be it Cloud Pro, or whatever they want to call it, you never stop putting out $200 a month, and if they raise the price you have to pay that. Think of how much that is after 20 years. After 20 years you have spent $47,760 and when you are done you have no asset to take with you. You have nothing to show for all the years you worked.

I know I have several thousands of dollars (I think I estimated over $25000 with what I spent retial) tied up in discs that probably many of have NEVER even been used other than to rip them. With what actually gets used, I could've spent thousands less. But I used to have the 'I want to own it' mentality, not sure if it's necessary anymore. If I were to start out, I would probably opt for a cheaper solution like the Cloud. Or until Compuhost gets the HDMP drive back up and running, but again, for a host starting out, paying the subscription rate is far less than trying to buy the same library of high quality rather than buying a bunch of crap that will get replaced anyway (money down the drain) - or at least until they can but what they know they need for their shows.

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PostPosted: Thu Aug 02, 2012 6:36 am 
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timberlea wrote:
But how much money did you make out of that outlay? To be very conservative getting $100 a night for a show, three times a week is $300 times 52 is $15,600 a year for 20 years is $312,000. Not a bad sum. Even if you had to spend $40,000 for miscellaneous/equipment replacement/repair, it's still over $200,000 profit.


"over $200,000" sounds like a lot. Until you do the math:

$47,760 / 15,600 = 3.06 years (468 shows) of working 3 nights a week - setting up, tearing down, loading and unloading winter, spring, summer and fall just to pay for the rental of music. That figure doesn't include gasoline or anything else.

$312,000 - $47,760 (music rental) = $264,240

$264,240 - $40,000 (misc. expenses) = $224,240

[misc expenses work out to $38/week to include repairs, books, gasoline, replacement equipment - like microphones - cords, taxes, insurance, advertising, song slips, pencils, business cards, telephone, etc.]

$224,240 / 20 years = $11,212.00 per year income

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More than one in seven people in the United States lives below the poverty line, which is $22,113 for a family of four in 2010. More than one in five children in the United States lives below the poverty line. Source: 2010 Annual Social and Economic Supplements from the Current Population Survey, U.S. Census Bureau, 2011.


Is your karaoke work a business or a hobby?


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PostPosted: Thu Aug 02, 2012 6:44 am 
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Chip, I guess you don't understand "very conservative", low pay, a few times a week. Now change that to a full time host (5-6 shows a week, making anywhere between $150-250 a show (not including private parties/weddings, etc) and the income is dramatically increased.

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PostPosted: Thu Aug 02, 2012 6:57 am 
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c. staley wrote:
timberlea wrote:
But how much money did you make out of that outlay? To be very conservative getting $100 a night for a show, three times a week is $300 times 52 is $15,600 a year for 20 years is $312,000. Not a bad sum. Even if you had to spend $40,000 for miscellaneous/equipment replacement/repair, it's still over $200,000 profit.


"over $200,000" sounds like a lot. Until you do the math:

$47,760 / 15,600 = 3.06 years (468 shows) of working 3 nights a week - setting up, tearing down, loading and unloading winter, spring, summer and fall just to pay for the rental of music. That figure doesn't include gasoline or anything else.

$312,000 - $47,760 (music rental) = $264,240

$264,240 - $40,000 (misc. expenses) = $224,240

[misc expenses work out to $38/week to include repairs, books, gasoline, replacement equipment - like microphones - cords, taxes, insurance, advertising, song slips, pencils, business cards, telephone, etc.]

$224,240 / 20 years = $11,212.00 per year income

Quote:
More than one in seven people in the United States lives below the poverty line, which is $22,113 for a family of four in 2010. More than one in five children in the United States lives below the poverty line. Source: 2010 Annual Social and Economic Supplements from the Current Population Survey, U.S. Census Bureau, 2011.


Is your karaoke work a business or a hobby?


I don't have a dog in the fight, really, but the numbers both of you are using amount to part-time work. If you are only playing three shows a week, you're clearly not making enough to cover your fixed costs. At five shows a week, which still might not be full-time employment, your net profit is double that figure.


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PostPosted: Thu Aug 02, 2012 7:20 am 
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timberlea wrote:
Chip, I guess you don't understand "very conservative", low pay, a few times a week. Now change that to a full time host (5-6 shows a week, making anywhere between $150-250 a show (not including private parties/weddings, etc) and the income is dramatically increased.


What you don't understand is that your version of "conservative" isn't conservative at all, it's a mathematical loser. With NO sick time, NO vacation, no nuthin'.

Let's use your new figures and add in 2 weeks of vacation/sick/unemployed time per year:

50 weeks * 5 shows * $150/show = $37,500 (most KJ's do not earn more than $150/show)

$37,500 * 20 years= $750,000

$750,000 - $47,760 (music rental) = $702,240

Shows increased by 2/3 and therefore your figure of $40k for expenses should increase at least by the same proportion: (40k/3= 13,333)*5= 66,666

$702,240 - $66,666 = $635,574

$635,574 / 20 years = $31,778.00/year

Congratulations! You just squeaked above of the poverty line (by $185.87/week) provided you have a 5-night-a-week job that pays $150/night. (lose a night and your back in the red)

I've yet to meet a single KJ that has had a 5-night-a-week job for 20 years that paid (the entire time) a minimum of $150/night. Even Lonman, who (technically) has a 7 night a week job is making $100/night and he doesn't work a couple of those days.

(Any parties and weddings you might have are just gravy.... and mathematically wiser to only do those if they pay at least 3 times a bar rate.)

Timberlea; be honest here, you work with a partner right?

1. How many nights a week?

2. How much is it per week? (in case you charge more for a Sat. than you do a Thurs.)

3. How much is your take after the split with your partner?


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PostPosted: Thu Aug 02, 2012 7:44 am 
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HarringtonLaw wrote:
c. staley wrote:

$224,240 / 20 years = $11,212.00 per year income


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More than one in seven people in the United States lives below the poverty line, which is $22,113 for a family of four in 2010. More than one in five children in the United States lives below the poverty line. Source: 2010 Annual Social and Economic Supplements from the Current Population Survey, U.S. Census Bureau, 2011.


I don't have a dog in the fight, really, but the numbers both of you are using amount to part-time work. If you are only playing three shows a week, you're clearly not making enough to cover your fixed costs. At five shows a week, which still might not be full-time employment, your net profit is double that figure.


Then you'd be working "2/3 more" (5 nights instead of 3) and double of $11,212 = $22,424

You've now worked 5 nights and made $311 (per year, total) above the "poverty line."


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PostPosted: Thu Aug 02, 2012 8:47 am 
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c. staley wrote:
Then you'd be working "2/3 more" (5 nights instead of 3) and double of $11,212 = $22,424

You've now worked 5 nights and made $311 (per year, total) above the "poverty line."


For, what, 30 hours of work a week? That comes to $14.37 an hour, which is almost double the minimum wage. It's not a great living, but it leaves the possibility of doing additional work to increase your income at little marginal cost, or holding another job, even part-time.

I think it is pretty clear that those numbers won't work for a lot of people, but they will work for some.


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PostPosted: Thu Aug 02, 2012 10:22 am 
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HarringtonLaw wrote:
c. staley wrote:
Then you'd be working "2/3 more" (5 nights instead of 3) and double of $11,212 = $22,424

You've now worked 5 nights and made $311 (per year, total) above the "poverty line."


For, what, 30 hours of work a week? That comes to $14.37 an hour, which is almost double the minimum wage.



"almost double the minimum wage?"... for a job that's half the time, sure... same as working minimum wage fulltime... right? Anyone can work at minimum wage for 8 hrs and not have to lug equipment in the winter, fix broken equipment, purchase music, yadda, yadda...

HarringtonLaw wrote:
It's not a great living, but it leaves the possibility of doing additional work to increase your income at little marginal cost, or holding another job, even part-time.

I think it is pretty clear that those numbers won't work for a lot of people, but they will work for some.


I think it's pretty clear that you're agreeing that working 3-5 nights a week at either $100 or even $150/night will keep anyone close to the poverty level and you'd best have another source of income... somewhere.


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PostPosted: Thu Aug 02, 2012 10:52 am 
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c. staley wrote:
HarringtonLaw wrote:
For, what, 30 hours of work a week? That comes to $14.37 an hour, which is almost double the minimum wage.


"almost double the minimum wage?"... for a job that's half the time, sure... same as working minimum wage fulltime... right? Anyone can work at minimum wage for 8 hrs and not have to lug equipment in the winter, fix broken equipment, purchase music, yadda, yadda...


The federal minimum wage is $7.25 whether you work 1 hour or 40 hours per week.

Double that is $14.50. My point stands.

c. staley wrote:
HarringtonLaw wrote:
It's not a great living, but it leaves the possibility of doing additional work to increase your income at little marginal cost, or holding another job, even part-time.

I think it is pretty clear that those numbers won't work for a lot of people, but they will work for some.


I think it's pretty clear that you're agreeing that working 3-5 nights a week at either $100 or even $150/night will keep anyone close to the poverty level and you'd best have another source of income... somewhere.


If your expense figures are correct, and I have no reason to doubt them, then sure--or live in poverty.


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PostPosted: Thu Aug 02, 2012 11:43 am 
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c. staley wrote:
timberlea wrote:
Chip, I guess you don't understand "very conservative", low pay, a few times a week. Now change that to a full time host (5-6 shows a week, making anywhere between $150-250 a show (not including private parties/weddings, etc) and the income is dramatically increased.


What you don't understand is that your version of "conservative" isn't conservative at all, it's a mathematical loser. With NO sick time, NO vacation, no nuthin'.

Let's use your new figures and add in 2 weeks of vacation/sick/unemployed time per year:

50 weeks * 5 shows * $150/show = $37,500 (most KJ's do not earn more than $150/show)

$37,500 * 20 years= $750,000

$750,000 - $47,760 (music rental) = $702,240

Shows increased by 2/3 and therefore your figure of $40k for expenses should increase at least by the same proportion: (40k/3= 13,333)*5= 66,666

$702,240 - $66,666 = $635,574

$635,574 / 20 years = $31,778.00/year

Congratulations! You just squeaked above of the poverty line (by $185.87/week) provided you have a 5-night-a-week job that pays $150/night. (lose a night and your back in the red)

I've yet to meet a single KJ that has had a 5-night-a-week job for 20 years that paid (the entire time) a minimum of $150/night. Even Lonman, who (technically) has a 7 night a week job is making $100/night and he doesn't work a couple of those days.

(Any parties and weddings you might have are just gravy.... and mathematically wiser to only do those if they pay at least 3 times a bar rate.)

Timberlea; be honest here, you work with a partner right?

1. How many nights a week?

2. How much is it per week? (in case you charge more for a Sat. than you do a Thurs.)

3. How much is your take after the split with your partner?


Chip... What about Health Care costs? If you factor that in now, I think everyone will be well below the poverty level (except Timberlea... since he's in Canada).


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PostPosted: Thu Aug 02, 2012 12:25 pm 
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cueball wrote:
Chip... What about Health Care costs? If you factor that in now, I think everyone will be well below the poverty level (except Timberlea... since he's in Canada).


Sorry Cueball, under the figures listed above, the average karaoke host is simply not allowed to become ill or see a doctor for any reason whatsoever.

It's not in the budget, you're not allowed to do it.

However under Obamacare, you will need to factor in the costs of the national healthcare or the penalties for failing to purchase it. This will pretty much guarantee that you will stay close to the poverty line.

Have an Apple.


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PostPosted: Thu Aug 02, 2012 4:17 pm 
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Quote:
Timberlea; be honest here, you work with a partner right?

1. How many nights a week?

2. How much is it per week? (in case you charge more for a Sat. than you do a Thurs.)

3. How much is your take after the split with your partner?



For number 1, six (6) nights a week for at least the last 10 years.

For number 2 and 3, in the words of Chippy, None of your business.

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PostPosted: Thu Aug 02, 2012 4:39 pm 
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I look at Karaoke as a scale business. I would like to have 6 rigs running 5+ nights a week at an average of $150/night. That would do me up just fine.

-Chris

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PostPosted: Thu Aug 02, 2012 4:43 pm 
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chrisavis wrote:
I look at Karaoke as a scale business. I would like to have 6 rigs running 5+ nights a week at an average of $150/night. That would do me up just fine.

-Chris

You are more ambitious than me. I just want my small show, a few nights a week. I'm not looking to take over the Karaoke universe. LOL. I just to run one rig, have a second full set up for a back up, and that's it. I don't want employees.

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PostPosted: Thu Aug 02, 2012 4:49 pm 
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Admittedly, I do have different aspirations and I have a lifestyle I want to acheive. Running a one man show 7 nights a week even with weddings and other functions is not going to give that to me. I also look at it as doing my part to stimulate small business in the area. I now have 3 folks that I use to run shows for me that have some supplementary income they didn't have before.That is a good feeling.

-Chris

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PostPosted: Thu Aug 02, 2012 5:10 pm 
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chrisavis wrote:
Admittedly, I do have different aspirations and I have a lifestyle I want to acheive. Running a one man show 7 nights a week even with weddings and other functions is not going to give that to me. I also look at it as doing my part to stimulate small business in the area. I now have 3 folks that I use to run shows for me that have some supplementary income they didn't have before.That is a good feeling.

-Chris

I am looking to pay my bills and have a little extra, afterwards.

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PostPosted: Fri Aug 03, 2012 11:14 am 
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This month's Northwest Karaoke Guide Magazine with article on New Round of SC lawsuits in Oregon: See "When It Rains, It Pours" article, PDF version, see PAGE 18.

http://www.themedallion.net/publicftp/2 ... 208-12.pdf

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PostPosted: Fri Aug 03, 2012 11:52 am 
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chrisavis wrote:
I look at Karaoke as a scale business. I would like to have 6 rigs running 5+ nights a week at an average of $150/night. That would do me up just fine.

-Chris


That sounds good on the surface, and I can certainly speak from experience that any mistakes that happen in this equation will normally come out of your pocket. It's not unusual, but you do need to be prepared for it.

If you have 6 rigs running don't be surprised when a host tells you that's a piece of equipment is broken and has no idea how it became broken. Gremlins did it.

If a majority of your rigs are mobile and moved around almost on a nightly basis, it might serve you well to either buy stock in an oil company for gasoline expenses, or at least require that all your purchases be made at a fuel station that has a cash\reward points system for your purchases. Then periodically you can cash those in for more fuel.

Make sure that all 6 rigs have identical hardware. If you have a night where 4 are working, and there was a problem with one of them – such as a speaker being blown – you can simply swap it out with an identical speaker and not have to worry about anything different.

Unless you are planning to move the systems around yourself, you will have an added expense of having a person to do that for you. Figure out the math of what you'll actually net at the end of a single night where you pay a host and you pay a set up person.

If you pay a set up person $12.50 to move the system in and the same to move it out – $25 total – and you pay your host $75, you will have $50 left before any expenses. Those expenses include gasoline, repairs, advertising, insurance, maintenance etc. all of the normal costs in running a business.

You may find, when all is said and done, that your portion more accurately is reflected in an amount somewhere around $38 per system per running night.


Last edited by c. staley on Fri Aug 03, 2012 12:44 pm, edited 1 time in total.

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PostPosted: Fri Aug 03, 2012 12:32 pm 
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That is another reason I am not trying to become a karaoke conglomerate. I can't be in two, three, four, etc places at once. As for equipment, I don't trust ANYONE other than myself to touch it, except maybe my buddy that I work for, now. He's about the only one I would trust to run my rig.

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PostPosted: Sat Aug 11, 2012 5:06 pm 
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Chris I hate to say it.... Unlike alot of Karaoke Hosts who Paid top dollar for their music, they feel as if once was enough. Lets say SC,CB or any other manu decided if you aren't the ORIGINAL purchaser like yourself you can't legally use the discs or files after you just bought a lot or two. I see it as you stepped into the biz CHEAP by buying used discs. I understand why you don't seem to ticked off. You havent paid your dues as far as I can tell so if a 20 yr vet of Buying/feeding Manus doesnt like or want the idea of RENTING music or Being accused of piracy by using a laptop... respect it is all.


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