I stopped worrying about pissing off people years ago. If you go into this business with a thin skin, you won't last. If you look to be offended, you'll find it and be offended and again, won't last.
And I totally hear what you're saying. I'm not trying to knock you down though by saying "You b@st@rds". It's more of a joke.
Bar owners want CHEAP bands to bring in CHEAP folks to suck down OVERPRICED booze. If the band can't land butts through the door, they fully intend to shaft the band. Now, I've seen a lot of the bar bands, and really, the suck, and most suck HARD. But, get this: I've seen a few good ones too.
The issue both you and I face are nearly identical. Some of the circumstances vary, but otherwise, it's almost the same.
First, you have to work for cheap to work. Why? Bars don't want to pay for anything except booze and anything else effects their bottom line. You're not being treated as promotional, you're being looked at as a expense only. Now, let's just say you're one of the better bands: Isn't the expense of the cost of hiring the band justified through the influx of cash generated by the purchase of booze? I would say if you're pulling in good numbers, then yes.
How do you get paid? Well, some places charge a cover, some use a 2-drink minimum mentality, some do both. I know of a DJ who keeps getting boned because they expect him to watch the door since they charge a cover, so he's being paid on the cover charge, and they shaft him time after time. He can't spin AND check the door.
Bands and DJ's are getting shafted hardcore in this area. It's almost like you said in your example, you pick up your guitar and do an event and you might end up netting $10. Did that even cover your gas? This just angers me, especially for any halfway decent band. Sure, most aren't trying to get rich doing this, but they deserve more than a pittance at the end of the night to justify what they are doing. That's why most break up or stop working, it just isn't financially worth it.
I'm not intentionally bashing you for doing your own sound and lights. I have found though when most bands do this on their own, they end up with both band sound and bad lights, and often as well, bad performance. Even a good band can have a better chance of an off-night taking on too much. This isn't fair to them or their audience. But I get it, you DO need to cut your costs because you're making peanuts. But, at the same time, you're investing in gear, and that costs money. Now it takes you forever to recoup your investment. For you, as the "financier", it becomes harder and harder to justify you doing what you're doing because the money sucks and you just put a buttload of dough into it.
Me, I have to take a different position. First, I love what I do. Second, like you, people want cheap. I also agree that most wouldn't know good sound from bad sound, and those who do, well, they typically don't go out to most events because typically event sound sucks. Third, I have to treat this as a business harder than perhaps you do, and for reasons you've pointed out. I work off contracts only now, even for small events and one-offs. I do a few exceptions but they are to my kid's school and I do that work for free. I had a kid 2 years ago hire me for an event, and wanted me to work super cheap, which I begrudgingly agreed to. But, he refused to get a contract back to me, and so I had no choice but to not even bother to show up and take another gig. He's crying and whining and panicing and I said to him that he had to turn in a contract 48 hours before the time my truck would have to roll, and he failed to do so, and other people wanted the date. What am I to do? No contract = no work. I have to also take the position of the fact that I don't give a crap what the band is making or HOW they are getting paid. I am guaranteed my payment. I can't watch doors or tally the bar or food services. I get there at 6AM, am setting and doing everything to set a show for a 5-6PM start time(maybe later) and am there until 2AM loading out so I can hit the road and go home.
The way I see it is that bands should treat their services the same way: They are guaranteed their pay for the night. The club needs to realize that there is value there. But as you pointed out, if the numbers aren't there, then perhaps the band won't be back. Understandable, but as I typically see it, when the numbers are low, the band or DJ gets screwed.
You know, when at a big talent show, say an A-list event, they are guaranteed their money, regardless of draw. There are often provisions for profit sharing or extra pay for sold out shows or sometimes even encores(agreed upon in advance, but also have to be approved most likely day of). Like, let's say they normally do 2 encores, they might say "hey, well, we have a full house based on sales, how about I throw in another encore for $X", which is in the contract, but has to be approved of by the promoter, since he's forking out the money.
Here's a funny one. Each year, the city I live in throws events. I don't go, mainly due to 2 things: I don't give a crap and I don't know about them. And even if I knew about them, I typically also don't give a crap. But people come to me complaining about the sound time and time again. I keep saying "Why are you telling me about it? I didn't do it. Why don't you tell the city to hire me for the event." Well, the city won't hire me, and yet I still hear of whining. I've even offered serves for free to "give back to the community", but they won't take the offer. Oh well, only so much I can do.
Forget economic downturn. This business of abusing bands, sound and lights has been really bad for at least 10 years. The current recession has only been an excuse for the whole situation to get worse for musicians, sound and lighting, even video and recording(which I also offer). When people start to realize that quality has a cost again and that you don't have to settle for crap, things will turn around. But until then, people want their crappy MP3's NOW and that's the level of trash the expect. It's getting hard to compete with consumers who expect and demand the lowest levels. I'm lucky to be working monthly. I have a few recurring gigs, and while they don't put enough money on the table, they are satisfying enough that I keep working with them. And with my using up to 2-4 regular crew, I have to raise my rates to pay them as well. It's hard to justify this on paper to ignorant people. When they see what I do, then it starts to make good sense. They usually say "gee, you bring in a ton of gear" to which I have to correct them and say "It's a lot closer to 5000 pounds, actually".
Do what I do: Keep going on. I love what I do and I won't quit. I'm not bashing you for doing your own sound and lights because I get where you're coming from. It's hard enough for you to work, just as it's hard enough for me to work. I have to compete with bottom-feeders and crappy gear to do my job because people don't care about quality, they just care about what it's gonna cost them, NOT what they make back from it. I recommend we all, be you sound, video, recording, lights, DJ, musicians or bands, to work with a contract. Guarantee your pay. Do your best each and every night and do not compromise your own work. Prove your worth each and every night. And if they can't appreciate your work(Read: don't hire you back), then you don't need to be there. Find somewhere that can appreciate you.