Components of pricing

Discussion in 'General Industry Related Topics' started by Slinky Bender, Jun 27, 2006.

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  1. Monk

    Monk

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    I've often wondered why the industry didn't take advantage of any number of pricing and marketing models used in other industries. For example, I'm sure there are times of the day that are much slower than others. Occassionally you see girls offering "early bird specials" and the like, but the practice is hardly wide spread. How about:

    * Buy one get one free
    * A freeby after 10 visits
    * Friend get a friend (refer a friend and receive a discount -- think the old MCI Friends and Family promotion)
    * Bulk discount rates
    * Book one single session and get a double for 50% more
    * Sales events (think all of those "Toyota sales events")
    * Promotional specials during slow periods, like Valentine's Day, or Labor Day, or New Years)
    * Test drives

    (I hope no one takes me too seriously.)
  2. Monk

    Monk

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    3,381
    Maybe I'm mistaken, but it seems to me that brothels tend to run a higher risk of being busted than independents, so if your calculation held up, then the risk premium price differential would make prices for brothels much higher than for indies. (Certainly, if they were to build in the cost of their payoffs to the cops, it would be.)

    Similarly, the health risk for drug abusing providers sharing needles is much higher than for "clean" providers, so their risk premium price differential should also be higher.

    I guess my point is that, beyond the "regulars" scenario you sketched out above, I'm not sure the risk model holds up. Or, can you think of other scenarios in which it does that I'm just not seeing?
  3. Slinky Bender

    Slinky Bender The All Powerful Moderator

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    It totally changes the game, because while risk is lowered for the supply side, it's threefold (tenfold?) lowered for the demand side, so it's too hard to make valid comparison.
  4. donquixote04

    donquixote04

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    If this is true, then one way to verify that is to see if prices are lower in places where risk is lower. I assume you primariy mean LE risk. If so, prices where prostitution is legal should be much lower than other places (all else equal, which I know they never are) where the activity is not legal.

    I think this test holds true in Montreal, but not in London or the parts of Nevada where there are legal activities. What's your take on that? Can you think of other examples?
  5. Slinky Bender

    Slinky Bender The All Powerful Moderator

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    Not sure about some of the numbers, but not only do I agree in general, but I think this is a MUCH more realistic model than is implied by a lot of the "you can't get good service and good looks" topics. In other words, they don't account for a 35% premium in the price to get the same service plus good/better looks.

    But to let the cat out of the bag: My initial point in starting this thread is that I don't think that there is enough of the risk factor included in the supply side's pricing model, and this is why: I do think that there is some non-insignificant part of pricing which should inlcude a risk premium. But if you belive that, there should be an adjustment when risk is reduced/removed. That leads to the following: I think what you don't see enough of is a price for first time visitors, and a lower price for returning customers. Coupled with the concept that most guys only see a girl once, you would think that as a business concept, this makes more sense than is reflected in the standard custom and practive in the business.
  6. curious

    curious

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    First round's on me :rolleyes: .
  7. Slinky Bender

    Slinky Bender The All Powerful Moderator

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    Don't you mean inelastic/plastic?
  8. Zeek

    Zeek

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    62
    It seems to me that slinky has it right, i.e.:

    There is a price put on the "risk" i.e. l.e. factor = 10%

    There is a price put on the "shame" factor = 10%

    There is a price put on the effort and need to have an income (i.e. rent, advertising, etc. known in other businesses as General Administrative costs) = 30%

    There is a price/premium added for the quality of service = 15%

    There is a price/premium added for looks = 35%

    My attempt to put some numbers on this may be off, but there big variable in my limited experience that can really pump a price is the looks factor--known good service a little, but not like looks.

    JMHO

    Zeek
  9. Monk

    Monk

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    3,381
    Getting back to Slinky's original question for a moment, I recently felt ripped off when I spent $400 on a provider who advertised as offering GFE and was well reviewed, only to find that everything was covered and she only offered one pop in the hour. So, as much as we like to say that personality and location are important, specific services offered play a large part in feeling satisfied that you're getting your money's worth. For my money, $300+ should offer what we tend to refer to as GFE services on this board (BBBJ, DATY, etc.). At a bare minimum.

    That said, the hobby has changed so much in just the last few years. Today you see providers who start posting on CL almost on a lark to test the waters and charge what we can call, for lack of a better term, an introductory price. Once they get established, set up a web site, rent an apartment, their prices rise (even though the level of service that they offer may not be commensurate with this new price). How many times have we all seen this scenario play out?

    Then she might get ambitious, change her name, put up a more glamorous site, and charge twice as much. It happens all the time.

    Pricing model? It's a little like the old price elasticity of illicit drugs model they'd show us in college economics 101 class -- demand for sex is elastic, so you can pretty much charge any price you want for it -- someone out there will be stupid enough to pay.

    Think of it this way: what would your pricing model be for heroin?
  10. Monk

    Monk

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    3,381
    Getting back to Slinky's original question for a moment, I recently felt ripped off when I spent $400 on a provider who advertised as offering GFE and was well reviewed, only to find that everything was covered and she only offered one pop in the hour. So, as much as we like to say that personality and location are important, specific services offered play a large part in feeling satisfied that you're getting your money's worth. For my money, $300+ should offer what we tend to refer to as GFE services on this board (BBBJ, DATY, etc.). At a bare minimum.

    That said, the hobby has changed so much in just the last few years. Today you see providers who start posting on CL almost on a lark to test the waters and charge what we can call, for lack of a better term, an introductory price. Once they get established, set up a web site, rent an apartment, their prices rise (even though the level of service that they offer may not be commensurate with this new price). How many times have we all seen this scenario play out?

    Then she might get ambitious, change her name, put up a more glamorous site, and charge twice as much. It happens all the time.

    Pricing model? It's a little like the old price elasticity of illicit drugs model they'd show us in college economics 101 class -- demand for sex is elastic, so you can pretty much charge any price you want for it -- someone out there will be stupid enough to pay.

    Think of it this way: what would your pricing model be for heroin?
  11. ShelbySmoked101

    ShelbySmoked101

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    98
    My experience is more money is not necessary to have a high quality erotic massage. I’ve never tipped more than $40 (and often tip less) for an erotic massage, and have found many girls who were quite happy to please, including initiating higher order sex (like bbbj, or asking if I have a condom (to which I sometimes respond “Wow, you also know how to make balloon figures?”) ) with no discussion beforehand of the act or any extra money expected.

    The only extra investment I’ve found necessary for a great erotic massage is that of time: finding the right girl, or developing the not-quite-right girl into the right one, and becoming a “desired” customer whom the girl wants to see on a regular basis. Basically, the quality of the massage depends on the girl’s innate abilities and how much effort she wants to put into pleasing you.

    More to your point (a bigger tip means a better erotic massage), I do believe that the massage experience with a new (to you) provider is a lot more variable than the new provider fs experience. Maybe a bigger tip does reduce that higher variability, I don’t know. There’s no question it sucks when all my massage providers disappear around the same time, since I have no idea how long I’ll be searching for a new provider I can connect with.
  12. justlooking

    justlooking

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    25,481
    It all depends on how much the money means to you. There's no reason to assume someone who charges twice as much will be twice as good (whatever that means). I don't think it ever works that way. (Returns diminish in the luxury sector.) To me, the question is really the more expensive girl is better and whether the more expensive price is what I'm willing to spend.
  13. Waterclone

    Waterclone Go ahead. Try me.

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    Now, when it comes to massages (non fs), my opinion is different.

    I have gone the AMP route, and the all-american MP route, and the independant route.

    Not always, but in general I have found that more money goes a lot further in this area. Assuming a basic AMP at 60 to 80/hour plus 30 or 40 tip, I have always found those massages to be functional and get the job done, but usually mechanical and non-erotic. Even during the hr. Paying 2 to 3 times as much I typically get a much better overall experience. At 200 to 300 it's much more erotic, often includes much more mutual touching and can be as good as fs (in my opinion).
    Last edited: Jul 14, 2006
  14. Waterclone

    Waterclone Go ahead. Try me.

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    On the topic of pricing...

    Ok, so I bitched and moaned about people who bitch and moan about girls prices in the girls threads. What I didn't think to do was create a thread where such bitching and moaning was appropriate.

    So here, have at it. I'll start.

    When I go for Full Service, I generally want 2 hours and I like to pay $500 or less. I have, seen several girls in the past at this rate and always been happy.

    Every now and again, there will be some girl who I really want to see who charges more. I've paid as much as $1000 for 2 hours.

    My general impression... While the expensive girls were certainly not worse than the more reasonable girls, they weren't twice as good either. Generally a little cuter and maybe a little more open to things like greek, but not monstrously better. Of course YMMV, but all in all, while I will still occasionally splurge on someone I am really curious to see, I will generally save my money and have double the time with the girls in my normal price range.
  15. Wwanderer

    Wwanderer Kids, don't try this at home

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    My experience is that everything (service quality and sophistication, appearance, attitude, atmosphere/style, companionship, quality/comfort of the venue...) gets better on average as you go upscale in the market. However, 1) there is a huge amount of variation and scatter in all of the above at all price levels (this is normal for a relatively "opaque" market, btw), and 2) above some level (maybe around $400/hr in NYC), the improvements with higher prices become much more gradual (also normal in a "luxury market").

    -Ww
  16. Boywonder2

    Boywonder2

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    In this business I don't think most providers put that much thought into pricing as far as rent, laundry etc. My opinion is that they have a set amount that they feel they are worth/want to earn. & start from there.
    A provider might think to herself...based on what I see out there and what other providers are charging I am much better looking, provide what she thinks is better service and will charge XX. She will also factor in....I need to make XX a week and will have to have XX appointments a week to obtain that amount. If she finds the demand is there with her charging XX and she is making more money than she thought possible, I'm sure she will not lower her price because she is making more than her fixed expenses !
  17. Slinky Bender

    Slinky Bender The All Powerful Moderator

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    I will say that in general, looks go up as prices go up.
  18. Hyabby

    Hyabby Guest

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    What utter nonsense!

    In this biz, the only rule on the correlation between price and service is: There is no rule! Good service can be found at all points on the price scale, and shitty service can be found at all points on the price scale.
  19. This biz is the exception to the general rule that you get more when you pay more. It's the reverse. Pay more, get less. The ladies that charge less aren't interested in bleeding men to death. They provide good service for a reasonable price.
  20. genius

    genius

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    ......
    Last edited: Jul 8, 2006