Hi Bm,
just in addition to Daves excellent post.
Remember that all these plans take time.
Obviously the paperwork parts (PLI,PAT etc) are fairly quick to arrange.
For now, I'd forget about targeting venues, or undercutting anyone.
Create a website, or ask someone to build one for you.
There are lots of options from Free to hundreds of pounds, for now - get a good domain name and then look at what you need.
With a website and a bit of promotion (which would be a good discussion elsewhere in the forum), you will start to get enquiries.
Dressing Smart, providing good service with a neat set-up will earn you a good reputation.
Basically, you need a rough plan!
Don't tackle the existing DJ's head on, let clients put you into the hotels/venues. Once you've played a venue a few times and know some of the staff - ask if you can leave some details.
This will take time, but you'll be working all over the place, and building up service skills, and improving your DJing ability.
Putting the venues aside, you'll effectivly be "just another mobile dj", so depending on your experience levels,
you'll need to work on a better show, or concentrate on service/marketing.
I started out in Feb 2008. I quickly built a website, got PLI+PAT, and received my 1st enquiry a few weeks later (then panic! lol). I had some basic gear, but always tried to make it neat.
With Yr1 out of the way, and pretty sucessful, I then invested in a better sound system and playback. This year has been better lighting and a custom booth/stand with starcloth, and also Led Uplighting.
Along the way, I've tightened up how I present my services. Most bookings have a 1hr face-to-face consolation, wedding enquiries receive our wedding services brochure.
All enquiries are handled personally (no automated quote jobby here!), and I prefer to call the client for a chat.
So, since 2008, I've come a long way - I've never let anyone down, and always work hard to give a good show.
So - you can compete with the more established guys, but it will take a bit of time and effort.
If you think about undercutting, you'll need to understand your costs and legal obligations;
-PAT
-PLI
-Travel (fuel cost)
-Music
-Wear n Tear on Gear
-Clothing (Tux/Suit?)
-ProDub
-Equipment insurance
-National Insurance
-Income Tax
You'll need to allow for most/all of the above, and then work out if its worth doing a 6hr gig for a specific price.
You may find there is a reason why serious DJ's are more expensive that less serious DJ's. If you take away all the above costs, there is a significant saving at the expense of legality and business ethics - both will threaten your reputation and possible your freedom (tax evasion is a serious offence).
So.. my advice, get some kind of plan. Look at where you honestly think you fit? (evaluate the marketplace)
Look at competitors websites/photos of their gigs- how does your set-up look in comparison (don't get too bogged down by brands).
Then, work out what you'll need to do to improve your set-up and/or service.
Change takes a while, but you will get there!!
Business cards are important, and some of the things you need will cost you, but any existing gigs can pay for these costs - rather than you personally funding them. This will mean working for "nothing" in your pocket, but we all do that when getting new shiny bits of kit!
Also remember, you can't always use bass bins due to sound level monitors (which are becoming very common), and it may be easier to hire the odd bit of kit than to spend £££.
Good Luck - but it sounds like you'll be fine!
Jason