Case Study of a Sole Trader DJ

I often read on the DJ online communities newbieNational Insurance - £2.35 per week
questions such as "How much should I charge?" orPublic Liability Insurance (£10m) - £0.95p
"What methods should I use for structuring my discoper week
fee?"He basic charge for a gig is slightly over three hundred
This year, I had a pleasant chat with a full-time mobilepounds (£315.00). Incorporated into this is a
DJ based in the South East (Kent) with over fiveprovision for TAX, a mark-up of fifteen percent and
years DJ experience, who was kind enough to shareallocation for a full tank of fuel (£66.00). For
a breakdown of his calculations for inclusion in aseasonal work, he'll vary his fee slightly according to
marketing section of a DJ forum.demand for particular key dates.
Although mentioned a couple of times, I've presentedUnder his Terms and Conditions of hire, to secure his
his fee structures as a sole-trader again for perusal!DJ service, he accepts a reservation fee of fifty
Personally, he needs to take home clear over fifteenpounds. The balance must be settled either fourteen
hundred pounds per month( £1543.31) whichdays prior to the function or on the night in cash.
broken down is approximately around three hundredBefore undertaking any overtime, he ensures that the
and fifty pounds per week (£356.14) or aroundpayment is upfront which equates to thirty pounds per
fifty pounds per day (£50.87)half hour entered.
When added together, his major monthly outgoingsGiven that his service is a 'Retro Disco', he has little
which include the mortgage, council-tax payment andneed to make new music purchases on a regular
utility bills total over nine hundred and fifty pounds perbasis. He also provides a Karaoke disco service.
month (£950.00). His food bill is around twoFor 2009, his diary is sounding pretty busy. He intends
hundred and twenty pounds a month (£220). Atto add at least ten pounds to his fee from April.
this point, it's worth reminding that these where hisOn a side note, he flatly refuses to operate for a
calculations broken down. Purchases which have notvenue who pay out less than two hundred and fifty
been included yet in this break-down are musicpounds a night. This is due to a number of factors
purchases such as mp3 downloads and Compactwhich he briefly summarised as not wishing to work in
Discs, diesel fuel or repair costs towards thethose areas which would not pay his fee. Baring in
maintenance and upkeep of his disco equipment.mind that he covered the South East across London,
Breaking down his figures a little further into a weeklyKent and Essex, there are several London Boroughs
cost which totalled over eighty five pounds per weekalone he particularly (and happily) avoids.
(£86.15) the following outgoings equate toOur conversation was drawing to a close. I enquired
around three hundred and seventy pounds per monthhow much he would charge for his service if he was
(£373.31):-out entertaining on-top of a full-time job, he said he's
Office:charge around one hundred and fifty pounds to two
Telephone, advertising and stationary - £38.46hundred pounds a function. This, in his opinion, was a
per weekreasonable fee for a part-time entertainment service
Electricity & Heating (Office Use) - £10.57and around half of what he believed full-time services
per weekwould charge for the same hours.
Web Host - £3.25 per weekGiven the recent licence introductions, before I could go
Mobile Phone and wi-fi (PAYG) - £10 per weekany further he was quick to jump in and say the
Vehicle:licence did not apply to him, he did not need it!
Car tax - £3.55On a final note, I asked him how concerned or worried
Vehicle Insurance and Breakdown Cover - £10he was about the future of his service in the current
per weekdownturn. He agreed that the future was pretty
Insurances:uncertain, especially for the South East although so far,
Equipment Insurance £4.23 per weekeverything was not looking too bad!
Portable Appliance Test - £2.79 per week