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Economy doing well, wages up= more business for you pros?
Old 13th June 2019
  #1
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Economy doing well, wages up= more business for you pros?

The economy is cooking along and wages are going up, so people are gonna be spending more, but are they gonna buy more equipmemt for their own bedroom studio or are they coming to you pros for mixing and mastering and lifting up your businesses? What is you outlook on your numbers in customers for the next couple years?
Old 13th June 2019
  #2
Gear Guru
 

Quote:
What is you outlook on your numbers in customers for the next couple years?
next couple of months look pretty good. That's just in terms of bookings.
Which about as far as my crystal ball can see. A couple of months.

Quote:
The economy is cooking along
actually car sales are slipping into recession-level decline
the tariff wars with China echo things that led to the Great Depression
and if they cut off the rare earth minerals, tech companies are screwed

and remember, the stock market reacts to what they think is going to happen.

Quote:
and wages are going up,
Are wages going up? I don't know anyone who got a raise recently.
Quote:
are they gonna buy more equipmemt for their own bedroom studio or are they coming to you pros for mixing and mastering
good question. The economy may determine how much money they will have available to spend, but it won't determine how they spend it.

Personally I think we are in the middle of a slight swing of the pendulum back towards at least some musicians feeling that they want to focus more on being musicians and getting high quality product out there without the distractions of self-engineering. But I think this is an "attitude" thing more than a money thing - a small shift in the zeitgeist. It swung so far away, that there is some room for a bounce.

The economy comes into to play more on the industrial level. People who need recordings vs people who want recordings. I would think that if the economy does well, there are more projects that are "paid for" vs projects that are "spec". A band already signed to a label or a soundtrack commissioned for a film is 'paid for'. A band making a recording to put on Soundcloud or hoping to attract a following is 'spec'.

Last edited by joeq; 15th June 2019 at 07:30 PM.. Reason: "["
Old 15th June 2019
  #3
Gear Guru
I disagree with the strong economy. We are doing more radio than broadcast work and that means people aren’t spending money. Uncertainty isn’t good and no big money is seeing stability.

Stock market is on a give away and is not a good measurement.

The good news for audio is suites cost money so harder to take in house for clients. Talking broadcast mostly....
Old 15th June 2019
  #4
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Brent Hahn's Avatar
 

Quote:
Originally Posted by ardis View Post
We are doing more radio than broadcast work...
Interesting. What sorts of brands/clients? So much adspend has been diverted away from radio and toward social/online (which is killing me, btw) that it seems like the only advertisers who still find good ROI in radio are the ones targeting people in their cars.
Old 18th June 2019
  #5
Gear Guru
Quote:
Originally Posted by Brent Hahn View Post
Interesting. What sorts of brands/clients? So much adspend has been diverted away from radio and toward social/online (which is killing me, btw) that it seems like the only advertisers who still find good ROI in radio are the ones targeting people in their cars.
We do whatever the local agencies are doing. Health and Wellness is really where people are spending. You are right the internet has killed a lot of business. Pulling in-house even more.....

Ironically agencies can offer production but when production companies offer agency services, they become the enemy and lose agency business forever.......
Old 18th June 2019
  #6
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Brent Hahn's Avatar
 

Quote:
Originally Posted by ardis View Post
... when production companies offer agency services, they become the enemy and lose agency business forever...
Agency services meaning creative? Or media buying, or planning, or...?
Old 18th June 2019
  #7
Gear Guru
Quote:
Originally Posted by Brent Hahn View Post
Agency services meaning creative? Or media buying, or planning, or...?
Pretty much in general. In broadcast these days you need to be a creative agency. That's a problem when you do advertising. I've found agencies aren't too happy when you introduce a design director as any kind of creative. Slippery slope......

Media buying as far as running on stations we offer as a service, and agencies don't seem to mind that. Overall strategy however might be going to the dark side!.....
Old 18th June 2019
  #8
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outlook for the next couple of years?! you must be kidding...

i own 5 studios; 4 of them are operated/get rented by independent producers/engineers, 3 of them on a long term basis. one sees some changes maybe every 2-3 years and i'm keeping one for my (occasional) studio needs although i'm working mostly in live sound/broadcasting/location recording these days.

economy has been going up and down in many different ways, affecting different parts of our business for the last 35 years so i stopped worrying (too much) about potential changes and focus on the work at hand - i'm not getting rich but that's never been my motivation anyway. so yes, i can report that things have been working pretty well so far (besides the usual hiccups) and i cannot see major things to change in the near future, except that pro gear seems not getting (much) cheaper. i'm glad though that these 5 studios are not part of a single large studio complex as those seem to suffer (or had to close down) more severely than medium/smaller sized studios.

maybe worth noting that i own most of the technical infrastructure (not the buildings) and that i do not need to pay a bank!

read up marx on that latter topic - and do not expect wages to go up: around here, they have been mostly the same for ca. 25 years...
Old 18th June 2019
  #9
Gear Guru
BTW mostly talking overall production than radio FWIW. I work more on the visual side of things!......
Old 18th June 2019
  #10
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Quote:
Originally Posted by ardis View Post
BTW mostly talking overall production than radio FWIW. I work more on the visual side of things!......
Yeah, I get that. To work with agency radio writers (usually the noobs) it's really essential to be a writer yourself, but you can't beat 'em over the head with it. I find myself coming up with ideas and solutions a lot and then convincing them that they thought them up themselves.
Old 18th June 2019
  #11
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On the premise if the economy is doing well and if wages are higher, the effect on pro vs bedroom studios would definitely tilt towards the latter only because that's a paradigm shift in full force that has been evolving for 2 decades, with only more steam being gained. Thus if there's extra disposable income, the mindset is why buy the milk when you can own the cow?

BTW, wages are not higher, have not been higher relative to inflation for more than 4 decades. It has been for a certain very minority segment of the population, and during that time there is a correlatable exponential divergence in the wealth/income divide.

The economy is seemingly doing well because there was a trillion dollar tax break given to corporations, which is essentially an unnecessary subsidy. Not surprisingly, given the "winging it" desultory nature of this administration, of course most of gains erased by the idiotic tariffs.
Old 18th June 2019
  #12
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Quote:
Originally Posted by 12tone View Post
. . . of course most of gains erased by the idiotic tariffs.
But we are lowering our trade deficit with China, while increasing it with Vietnam, India, South Korea and Taiwan, all have seen double-digit gains in exports to the U.S. in 2019 v. year prior, according to Census Bureau data. Mexican imports were up about 6% (data from earlier this month, we'll see how that goes). To put it simply: China lost about $20 billion in exports to the U.S. this year, while those five countries had a $21 billion gain in exports to the U.S. during the same period.

Tariffs work to force reshoring and build up U.S. manufacturing though.

Anyone want to buy a bridge? It is bright orange and NOT FAKE!
Old 18th June 2019
  #13
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Quote:
Originally Posted by joeq View Post
Are wages going up? I don't know anyone who got a raise recently.
Personal income increased 0.5 percent in April after increasing 0.1 percent in March. Wages and salaries, the largest component of personal income, increased 0.3 percent in April after increasing 0.4 percent in March.

State personal income increased 4.5 percent in 2018, after increasing 4.4 percent in 2017. In 2018, personal income increased in all states and the District of Columbia. The percent change in personal income across all states ranged from 6.8 percent in Washington to 2.9 percent in Hawaii.
Old 18th June 2019
  #14
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Jeff Hayat's Avatar
 

Quote:
Originally Posted by ardis View Post
I disagree with the strong economy. ....
Real gross domestic product (GDP) increased at an annual rate of 3.1 percent in the first quarter of 2019, according to the "second" estimate released by the Bureau of Economic Analysis. In the fourth quarter, real GDP increased 2.2 percent.

Personal income increased 0.5 percent in April after increasing 0.1 percent in March. Wages and salaries, the largest component of personal income, increased 0.3 percent in April after increasing 0.4 percent in March.

State personal income increased 4.5 percent in 2018, after increasing 4.4 percent in 2017. In 2018, personal income increased in all states and the District of Columbia. The percent change in personal income across all states ranged from 6.8 percent in Washington to 2.9 percent in Hawaii.

State personal consumption expenditures (PCE) increased on average 4.3 percent in 2017, an acceleration from the 3.8 percent increase in 2016.

The US unemployment rate is at 3.6 percent, which is a 49-year low.

The current price of the Dow Jones Industrial Average as of June 17, 2019 is around 26k - up from about 19k in Q1 of '17

In 2018, around 155.76 million people were employed in the United States. For 2019, an increase by almost 2 million employed people is expected.

---------

You are entitled to disagree, but you can't argue with facts.
Old 18th June 2019
  #15
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Old 18th June 2019
  #16
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Quote:
Originally Posted by Jeff Hayat View Post
Personal income increased 0.5 percent in April after increasing 0.1 percent in March. Wages and salaries, the largest component of personal income, increased 0.3 percent in April after increasing 0.4 percent in March.

State personal income increased 4.5 percent in 2018, after increasing 4.4 percent in 2017. In 2018, personal income increased in all states and the District of Columbia. The percent change in personal income across all states ranged from 6.8 percent in Washington to 2.9 percent in Hawaii.
The questions are if the purchasing power follows, and secondly just who got those increases.

If wages for the middle / lower classes go up but purchasing power remains or slips and the "new" wealth is concentrated higher up then by definition it's not really all that much better at all for most Americans.

And then there's this:



...which raises the third question which is what those with the least need the most...
Old 18th June 2019
  #17
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Hmmm - that seems to disagree with the CPI

Old 18th June 2019
  #18
Old 18th June 2019
  #19
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I'll never listen to Kiyosaki's opinions I think. I mixed a promo for Rich Dad, Poor Dad an eon ago and it struck me how silly his "product" was.
Old 18th June 2019
  #20
Deleted 5cc4b50
Guest
Is this dude seriously saying that prices aren't going up? And then cites data from 2018?

Here is some facts from six days ago: The Labor Department said Wednesday that the consumer price index rose 1.8% during the past year. Excluding the volatile food and energy categories, core prices rose 0.1% in May and 2% from a year ago. (https://www.foxnews.com/us/us-consum...-up-0-1-in-may)

Don't forget Jeff: "You are entitled to disagree, but you can't argue with facts."

And you are saying the CPI is going down? Stable? You weren't clear when sharing that year old chart.
Old 18th June 2019
  #21
Deleted 5cc4b50
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https://cpiinflationcalculator.com/2...united-states/
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Economy doing well, wages up= more business for you pros?-screen-shot-2019-06-18-4.35.53-pm.jpg  
Old 18th June 2019
  #22
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I'll just reiterate; the biggest problem - assuming what I read is true - is that the most vulnerable are those with the least money, and the biggest inflation is seen in the most critical essential goods and services.
Old 19th June 2019
  #23
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Quote:
Originally Posted by TheRealSPH3 View Post
Don't forget Jeff: "You are entitled to disagree, but you can't argue with facts."

And you are saying the CPI is going down? Stable? You weren't clear when sharing that year old chart.
Neither. Just showing that it doesn't exactly agree with the chart that mattias posted, is all.

Cheers.
Old 19th July 2019
  #24
Lives for gear
 

In my local area (in western Canada) the construction industry is doing well at the moment. I am a part time freelancer and I have def been getting more calls.

My clientele are mostly blue collar types.
Old 19th July 2019
  #25
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The economy is kicking butt here, I’m certainly enjoying it.
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