It's always far better to have a more powerful
System than you actually need, so that the
System is only running at a percentage of its designed capacity.
Having a 1000W System doesn't mean that you are required by law to run it at 100% of its output at each and every gig just to see if the clip lights still work!

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So for instance if you have a function which would require 600W to comfortably fill it, without blasting people into the public bar then it would be better to run a 1000W system at 60% of it's capacity than to run a 600W system at 100% of its capacity - as Gary states above.
However, I still wouldn't recommend running a 1000W @ 8 ohm Amplifier into a 200W 8 Ohm speaker on a regular basis, even at 60% of the amplifiers capacity

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I use a system which can deliver 300W RMS @ 8 ohms, and I use 300w RMS 8 ohm Speakers - however I also use a compressor limiter which limits my amp to around 85% of its output - so there is no potential to run the system flat out. If I'm doing a bigger room, then I run the system at 4 Ohms by adding bass bins and increase the power to 500W per Channel (still limited by the Comp - Limiter). I never suffer from clip lights appearing on the amp - regardless of how far the mixer is turned up.
The majority of function rooms in this area have a 60 - 100 capacity and the hotels are small

, so two speakers and an amplifier is more than adequate - I rarely even kick in the Comp-limiter, I still know 2 DJ's in this area who operate using a mono cloud GS150 - 150 watt amplifier driving SAI speakers (Anybody remember them?)

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I get a couple of High School gigs each term where the 4 Ohm - 4 Speaker system is used, and I maybe have one or two gigs a year in Manchester which warrant a larger system driven by a QSC RMX2450 Amp - however if I didn't already have the system then I certainly wouldn't invest in it for one or two gigs a year. If you do large venues on a regular basis then it would be required, but I would never get the system into the average sized rooms I cover where you have around 5 ft square to set up the entire disco!.
So the advice is, get a system which is the biggest you can afford, but spend equally on Amplifier and Speakers - don't pay £1000 for an amp but only have enough for a £100 pair of speakers

. Look realistically at the size of the Majority of function rooms you do, work out how much power you'll need and then buy a system which will deliver that capacity at no more than 75% of it's rated output - ideally 50% will give you a good headroom and maintain sound quality.
Don't spend on a system which will only really be used at 1 or 2 gigs a year, and be overkill or difficult to use in smaller areas or rooms with 30 people attending.
Use the system to it's ability. Have a pair of compact good quality, full range, High SPL cabs which can be used alone with the amplifier in smaller venues, but also have a pair of Bass bins or additional speakers in reserve for those larger venues.
Above all, if your amplifier clips then you have passed the 100% full rated power threshold of the amp and are now venturing beyond its design parameters - and strange things can happen to speakers at this stage (and some of them expensive things).
If you light the clip lights on your amplifier on a regular basis then first consider
(i) whether it really does need to be that loud in that venue.
(ii)Next consider adding a pair of bass bins( if you are only using your amp at 8 ohms per channel),
(iii) if you are already running your system flat out then get a bigger system.