Setting your price point

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#1
My point in starting this thread is to make aware to all of us that these are indeed NOT good times in the economy of this nation.

The stock market is in a MAJOR bear market, and corporate America has been laying of millions of people in the last two years.

It may take another year or two before we start to see confidence in the stock market again.

Who knows how long it will take before the economy of THIS GREAT NATION gets back into the upswing.

The Federal Reserve, led by AG, really ruined the economy of this great nation. After 6 rate increases in a row, they (the Feds), finally destroyed the stock market that was red hot at that time.
Maybe they were justified in bringing down the market, but IMHO,
they went too far, and destroyed the economy of this geat nation..... the USA.

Just look at the facts.......corporations going chapter 11, the colapse of the stock market as we once knew it (1994-1997),
huge corporate layoffs......millions are affected, consumer confidence destroyed.....investor confidence, shipwrecked.

I hate to be the messenger of bad news.......but no one can deny the state of the economy that we are now in.

That being said......I would seriously suggest to ALL providers......this should be a time for you to consider reducing your rates. This reduction would be only a temporary action, and when things improve......you can re-adjust your rates accordingly.

As an example a girl who normally charges $300 for an hour of fun
could charge a temporary rate of $200 to $250 for the same service and time.

Providers, listen to what I have to say......most successful business people have always had the ability to play on the economy of the country at the time when they are in "business". When times are bad, they reduce their prices (to keep old and attract new customers). And when the economy improves, they adust their price structure accordingly.

So my sugesstion to all providers is this:
Reduce your rates......only on a temporary basis, unless you have noticed no decrease in your cliental (business). If you have business as usual, then you don't need to make any adjustment in your rate at this time.

But if you are seeing a decrease in your scheduling calender, and a reduction of appointments made.......then you should consider reducing your rates for the same service provided......even if it's only a temporay situation.

Always remember, we will not be in a bear markent forever!




OK there it is........comments anyone???

Let's have some feedback on this from both clients.....AND providers.

Capy
 
#2
I would also suggest that barter arrangements be considered in all transactions. I am pretty handy around the house. In my early days in CT I bartered my services at a local AMP. I swapped electrical work for their "plumbing" work. I am afraid to drive by in case the joint burned down.
 
#3
I think you're on to something Cap. I was visiting my $.5 provider a hell of a lot more often then the $$$ ones on a regular basis, and she said she made 6 figures a year even at that price because of repeat business.

I do notice some others do offer reduced rates on certain days or times.
 

Slinky Bender

The All Powerful Moderator
#4
As stated many times here, prices in this industry tend to be "sticky downward".

However, while "providers" seem to have "stuck to their guns", it appears that "dancers" have been hit harder, faster, and have begun lessen their "bottom lines".

As I mentioned to a number of people over the past year, I think the first incall place to offer a $100/$175 rate will clean up.
 
#5
Slinky,

I think that you are "right on target" with this one.

And that's my point......providers, here is your chance to increase your business potential.......not only newbies........but return customers as well.
 
#6
waahh waahh waahh waahh waahh waahh somebody please help me

the only reason to lower the price you charge somebody is if s/he has become less unattractive.

"If I can't sell it, I'm sitttin' on it."
 

Slinky Bender

The All Powerful Moderator
#7
Originally posted by Cheerful
waahh waahh waahh waahh waahh waahh somebody please help me

the only reason to lower the price you charge somebody is if s/he has become less unattractive.

"If I can't sell it, I'm sitttin' on it."
One too many negatives there ?

And someone can become less attractive by the market shifting as well as them shifting. It's all relative. When IBM is trading at 80, if you can buy it at 75 it's a bargain. But that same share of IBM at 75 doesn't look nearly as attractive when the market says it's worth 70.

"If I can't sell it, I'm sitttin' on it."

How 'litteral' for this business !
 
#8
Originally posted by slinkybender
SNIP As I mentioned to a number of people over the past year, I think the first incall place to offer a $100/$175 rate will clean up.
Let's see how the numbers work.

You charge 300 an hour, in and eight (or whatever you work) hour day how many clients do you see.

you charge 150 an hour, do you see twice as many?

Even if you do, is it worth in terms of wear and tear? (sorry, the only terms I can think of at the moment.)

I am not thinking of the house - after all, as my first drill sergeant said, "Men it's a matter of mind over matter. I don't mind and you don't matter." So what does the house care that a provider work twice as hard for the same compensation. The provider cares though, not sure this would work Slinky.
 
#9
I understand that the economy is not that great, however the places that I advertise, the hotels that I stay in when I tour, my incall are not passing any discounts on to me. Im sure big houses like Julies,and CLPC can lower their rates but for independents its kind of hard. Most of us dont see that many clients a day and we are getting by like you gentlemen.
Please dont take it as being arragont, but I think some of you men dont relize our costs.
Advertising
Hotels
Incalls
Drivers
Lingerie
Toys
manicures, pedicures, tanning sessions, personal trainers, hair maintenance.
 
#10
NJ Classy Blonde

Originally posted by njclassyblonde
I understand that the economy is not that great, however the places that I advertise, the hotels that I stay in when I tour, my incall are not passing any discounts on to me. Im sure big houses like Julies,and CLPC can lower their rates but for independents its kind of hard. Most of us dont see that many clients a day and we are getting by like you gentlemen.
Please dont take it as being arragont, but I think some of you men dont relize our costs.
Advertising
Hotels
Incalls
Drivers
Lingerie
Toys
manicures, pedicures, tanning sessions, personal trainers, hair maintenance.
this is the edited part
Ooops, hit submit before id wrote anything.

Exactly the point of my post. If you can "screw the workers" into increasing productivity, you can lower prices. If you are the worker or entrepreuner, then you get screwed.

PS - NJ C B - I had expressed an interest in another thread in tall providers. Someone said you were but I don't know how to contact you directly. If you want, give me holler back channel. RL
 
#11
i agree with both sides...

lauren makes a valid point...but i dont have a driver...and because outcalls are more on my preferred list i do lower my rate if a hotel is chosen its only fair...
the economy is tough...my retail stock suckssssssssss but i havent lost to much in my pfizer stock......but i wont sell yet
this week started off with a bang but look how the week ended

u just never know...

but imho this is why i keep my full time job......this business is just not stable enough unlike my other job is with 401k, stock options all my benefits and paid time off...

i will consider lowering my prices or hey how bout this...what if we extended the session by a half hour

let me know what ya think
 
#13
As anything else, it all comes down to supply and demand. If the clients dry up, then the providers must react by either increasing their "reach", lower their prices to stimulate reoccurances, or do whatever it takes to increase demand and cut competition.

The increase in time for dollars might be a way to offset the costs for some clients, but if you typically don't need more than an hour, you're both just wasting your time.

I'm curious to know what the turnover rate for a provider is typically in a year. How many regulars do you lose, versus how many new clients become regulars. Wouldn't you do everything possible to keep your regulars happy and coming to see you.

I'm not sure if in this business there are more providers then clients right now or visa versa. Anyone have a feel for this?

All the providers I have seen in the last 3 months have said that business is definitely down, and some of them are venturing out to remote locations just to be the "new talent" in that area, which seems to generate some flurry of new business, albeit temporary.
 

Slinky Bender

The All Powerful Moderator
#14
One thing I think that is overlooked is that there is a large "premium" for repreat business in tht not only do they cost "zero" advertising wise, but you have to assess something for the "risk premium", which is often overlooked, and the risk premium for repreat business is much, much lower.
 

Slinky Bender

The All Powerful Moderator
#15
But even for independants, I think "prices being sticky downwards" hurts them, because they get in their minds that "I'm worth X". For example, I know for a fact that about 2 weeks ago, an independant was offered $1,000 for an 8 hour date, which she turned down because "she gets $250 an hour" and that was too much of a discount. On that particular night, she ended up doing $0 business, and sat by the phone all night hoping for it to ring. Now, I understand "wear and tear", etc., but just how much wear and tear could 1 guy put on her in 8 hours ? my ponit is that what will probably happen is what usually happens in this business when there is downward pressure on prices: a lot of women will hold fast to their prices, then get bitter that "these new girls are selling themselves too cheap" as they take away their business, and the "old guard' will leave the business in disgust. Happens every time ( at least the last 4 business cycles it did ). I'm already seeing that at cetain parties where I attend, and the "old timers" are complaining both that they are making no money, and blaming it on the newcomers who are "cheap ho's".

Of course, this isn't the only business hwere this happens. It happens in every service business. It will hit the Real Estate Brokerage business hard ( hell, look what's already happening with YHD ). Same for computer consulting. Wouldn't be surprised if Law got hit, too.
 
#17
I do not see many clients a week. Some of that is by choice. I really do not want or need to see over 20 men a week. I have already experienced provider burn out once before.

I also think that seeing that many men in a week increases your risks. Health and physical risk.

When I do my incall I average about 2-3 each day. Some days I can only work one incall day, Thursday or Friday, not both. Outcall is not as popular as incall, so the days I am not doing my incall I average about 2 clients a week, outcall.

So if I have had a decent month I make about 4200-4800

Keep in mind, on a bad month I can make half that.

Now for the expenses: Monthy

Mortgage: 700 ( thats paying half)

Hotel room- 1000 a month ( that is if I have worked both Thursday and Friday for 4 weeks, sometimes I only work one day a week incall)

Gas- 200

Condoms ( 24 pack) 25 dollars

Food for my family- 900

Car payments 300

Credit cards- 200

Electric- 250

Phone ( cell and home)- 300

Cable bill- 60

Karate lessons for my kids- 220

Misc things that kids need ( clothes, shoes, books, doctors visits) 400

Clothes shoes toys for myself- 200

Advertising- 300

Nails and toes- 50


Lower my prices? No. Sorry I can't. I am already in the negative, and that was a GOOD month.

If I didnt need to put a roof over my families head, maybe I could..

If my local supermarket lowers their food prices, if my phone company lowers their rates, if my kids don't require to be fed or clothed then MAYBE I could lower my rates.
 
#18
Originally posted by slinkybender
. Same for computer consulting. Wouldn't be surprised if Law got hit, too.
It was in the early 90's. Lawyers and Law Firms are a great analogy to Providers. Except of course Providers have character. Sorry to the lawyers out there. Both become highly charged when a discussion of lowering rates commences and they will always bring up a lot of reasons that really amount to Dick if I seek a rate reduction and the provider is unwilling then I am free to go elsewhere. It is after all a service industry and the market will eventually dictate a value.

While Kimme and Classy may have long lists to justify their costs, basically people that acquire their skills do not care it boils down to what someone is willing to pay - not what I think is fair or reflects their costs. They set their price and fortunately they have been able to command their prices.

i am not suggesting that anyone needs to raise, lower or even justify their prices. We are all free to choose.

I suggest a read of Milton Friedman's treatise "Free to Choose"
 

Flounder

Sleeps with the (rest of the) fishes
#19
Originally posted by slinkybender
For example, I know for a fact that about 2 weeks ago, an independant was offered $1,000 for an 8 hour date, which she turned down because "she gets $250 an hour" and that was too much of a discount. On that particular night, she ended up doing $0 business, and sat by the phone all night hoping for it to ring. Now, I understand "wear and tear", etc., but just how much wear and tear could 1 guy put on her in 8 hours ?
Good point, this lady could have verified one person and made $1000 in 8 hours. She ended up making nothing. The guy probably wouldn't have been pounding her for 8 hours (no, it wasn't me, I would be doing that), he could have been cuddling, talking or taking her to eat during their date. Besides, $1000 for 8 hours with a girl who requires $250 an hour is a reasonable multi-hour discount.
 
#20
doing business

During the time doing my thing, I've learned few lessons.
One was to never barter, or do any kind of penny pinchy discussion, specially with a first time client.
Some guys are really in the "dumps" financially, but some just trying to get more for less.
Example: met this guy few times and after a while he asked me if I could make a special rate. I did and later I found out he was paying much more to see another providers who didn't give 1/2 of I was giving to him. So, he was taking advantage of the situation.
My incall rates are already lower than anyone else out there, but sometimes when a regular call me and say "ohhh I wanted to see u but I'm bit short this week" I don't mind give him a break.
I did lots of research on that, because I didn't want to feel I was overcharging or "robbing" someone.
I agree, there are some escorts who ask for sky high prices and sometimes I get the heat from them when I'm online.
One independent in my area once IM me angrily saying "you know your rates are way bellow the market?"... I said "yes, but I think they are reasonable because I'm not Pamela Lee and you are not either and many guys out there are not 6 figures income" .... she goes "yeah, but out there are men who likes what I have to offer and I can weed out the undesirable ones".
Few weeks ago she was asking me how was summertime for me. I said, fine, busy as usual.
She goes "well, I haven't had a client in 2 weeks" and she was surprised that I had to send some guys to another girl I know, because I didn't have enough time.
I also limit myself to 2 clients a day, I enjoy imensely what I do and having one client for a 3 hours marathon in the morning and another in the afternoon is more than enough for me. Sometimes I do 3, just if a regular of mine is real horny and into a " I need a quickie now" kind of mood.
But, when I have a true regular, I do treat him once in a while, out of the blue.
Is like a frequent flyer thing...I call it FFF...lol
Like yesterday. I was in the mood for fun only and I called 2 of my regulars, I asked to bring wine and some munchies and just pay for the room.
They felt appreciated, we had tons of fun, but next time they know is my regular rate again.
 
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