One of the best things I’ve come across in my DJ career is an extra time policy. Just picture this, you are playing an event and your guests are having such a good time that the client wants you to keep going beyond your scheduled end time. Awesome! But, what happens now? Do you do it for free? Do you have an awkward negotiation over price? Do you just say no?
All professional DJs should have an overtime policy. This makes it clear to your client and your guests that your time can be extended, but you won’t be playing for free. How much should DJs charge for extra time? DJs should charge a premium over their standard rate to discourage clients from underbooking, but they should not charge so much that clients will never pay for overtime. I like to set my overtime rates between 20% and 50% more than my standard rate.
What’s your policy?
To create an Extra Time policy, you put a clause in your contract in advance that says you will play longer than the scheduled end time at the client’s request on the day of the event. Your rate for such extra time is clearly listed in your contract.
Why have one?
This prevents any awkward conversations or misunderstandings on event day. If the client wants extra time, they have already signed a contract agreeing to your rate. So, they won’t expect you to play for free, ya know, as a favor cause you’re a really nice guy.
Just having the clause in your contract lets your clients know that they can ask for extra time if they want it. It’s a clause I make sure to point out at each contract signing, with a bit of discussion about how I am available for extra time if needed, and how they can pay me.
Your clients also won’t book you for a shorter time, and think that they can just ask you to play longer on the day of the event for free. Which leads to your pricing strategy for extra time.
How much should you charge?
Your extra time rate should be a premium over whatever your normal rate is for an event. Again, this prevents clients from booking you for a short event and extending you on the day of. I charge $175 per hour for weddings and $125 per hour for any other event right now. My extra time rate is $100 per half hour. I break it down by the half hour so clients can just add a little bit of time. But the overall rate is still above my normal rate to discourage last minute extensions that people know about in advance.
I’m the boss of my company, so I can decide what I’m willing to accept of extra time. When someone asks me about it at the event, I’m fully willing to change my pricing as the situation demands. If I’m having a great time at your event, and you are reluctant to pay my full rate, you’re likely to get a discount. If your event has been nothing but drama from the start, you’re probably paying full price.
Here’s a sample extra time policy:
“If Client requires additional time beyond the ___ hours agreed to, then DJ, Client, and facility must all agree to extend. Client agrees to pay DJ by cash, credit card, or valid check payable to ____ in the amount of $100.00 for each half hour of extra time. Payment is due before the beginning of the extra time period.”
DJ employees and extra time
Speaking of being the boss, if and when you have DJs who work for you, the extra time policy can be a great benefit to them. When I worked for a mobile DJ company, the policy was that DJs got to keep any money they collected for extra time. What a great incentive to do a great job! You get to keep any tips, and if you’re really spectacular and they ask for more, you get to keep that money too!
More than anything, it was a logistical issue at that time. Most clients were tipping and paying for extra time in cash. Rather than tempt DJs to be dishonest, my boss just let them keep whatever they collected. These days, your DJs may be collecting a check or credit card payment to the business, so you’d have more control over the funds. I’d recommend at least a 50/50 split with your DJs so they have incentive to exceed client expectation.
How do they pay?
Once again, being able to collect electronic payments is critical to being successful with your extra time policy. Most people are not carrying large sums of cash anymore. You need to not allow this to be an excuse for them. Extra time is an impulse purchase. You have to be able to capture any form of payment they can offer.
I use Square for my mobile credit card payments. I love how small their reader is, and that it is free! I ordered multiples, so I have one that I just leave in my DJ backpack.
You can also use PayPal reader or any other mobile payment service. However, I’d recommend that you use something that can take credit cards directly and doesn’t require the sender to install an app or sign up for anything. Again, do not create barriers to getting paid!
Benefits for tipping
Just like having a clear tipping policy, including your extra time policy in your contract signals your expectations to your clients. But how will charging for extra time impact your tips? The more generous clients may factor in the cost of the extra time, thereby increasing your tip. It may also replace your tip, as they feel they have already paid you more. The less generous clients may not have tipped you anyway, so extra time is just another opportunity to increase your income.
In summary…
Extra time is a win-win opportunity for everyone involved. By laying out your policy in advance, there is no confusion or awkward conversations. Your clients have a chance to get more of want they want and keep their party going. And, if you employ DJs, it is a direct incentive program that is completely free to you. Take 10 minutes today and add an extra time policy to your DJ contracts. You’ll be surprised how much extra income you can make with such a small change.
