I think that the union is doing a huge ask so that they can get better than what is offered at this time. They will have to bargain away rights as well. They may give the manufacturers the right to lay off employees with less years when things get bad. The forecast for the next 3 years is that car sales will be down 30%.
Key Reasons for the drastic change in the SP market (agencies)?
- Thread starter WanderingPrince
- Start date
It wasn't that long ago when we bailed out GM to save unions jobs.
Will we have to bail out GM again so we can give unionized employees hefty raises?
Oh the sales and not the prices of cars.
So how does this effect the SP markets and Agencies.
What?
If you are saving money on Gas (Petro) , Insurance and Wear/tear - GIW, then I think you have plenty of money left over to afford the SP close to a bus stop.
There has been inflation, and you now pay 25% more for just about everything. If you need a new car now, it is not the best time but you may have to spend to keep up appearances or the vehicle is a necessity for your business. You also have a multitude of other necessities to pay for and your family life. The luxury/discretionary expense of SPs/MPs are pushed far down on the list of priorities.
This reminds me of the Roaring 20s, or recently, 2007-early 2008 when inflation was high (remember the price of oil and grains that time). Afterwards, was a recession. It's like a cycle, or history repeating itself. There were guys spending it big in the stock market before the crash of 1929.
Cupids just announced rates are increasing in October.
The gouging continues.
The gouging continues.
Cupid's appear to me as an agency for C-suite executives who write off their hobbying in their taxes and company profits.
Raising prices as the economy gets worse when there is less discretionary spending is a bad idea in any business. If others keep their prices the same or offer specials the value of the expensive provider is decreased. In a repeat business, never let the client try the competition.
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What type of effect do you in the SP market? Does other agencies increase their prices as well? They can pretty much keep same price, and take greater market share from their competitor who is increasing prices.
Also, lets say if we enter in to recession, what effect do you see in the SP market? Do you see more SP providers coming to this business?
Not sure if job losses going up will effect people in SP business? Its consumer discretionary, but for few it could be consumer staples (as they might addicted to it). I guess top 1% will have some budget/hobby to continue. I was reading some stats on Strip club markets during recession, and during 08-09 it did not really bad for them in US.
I feel, we have not felt a proper recession in Canada since 1982, so probably it's not in anyone's living memory. Next 2-3 years will be indeed very action packed.
I agree… Cupids raised prices not that long ago 300-350. Same women, same service …this raise during these times may price them out of their comfort zone. Once they go the 400 which is most likely the price… Cupids is not longer in the sweet spot,. the place where they are within 50-75 more than most agencies offering there services and 50% of their women are much nicer, in looks and service, plus they are one the few out call agencies servicing business travel to Toronto. Once they hit 400 or 400+ they start to compete with a greater number of agencies asking for 400-500 and compete with high end Inde SWs who are hot and asking 500-700. Cupids competing roster will fall to 25% the others will not be considered a proper return for the spend.
Recession in my opinion is inevitable and we will see several over the next few years, one thing that may trigger a recession is a contagion of fear. just fear in the economy will shrink consumer spending. The definition of a recession is a decline in real gross national product (GNP) for two consecutive quarters. Since the economies in the world are not in the best shape just news of recession in one country can trigger recession in other countries. If you compare the SP/MP business it is like any other entertainment/discretionary business. In hard economic times people go to restaurants less. people buy less consumer goods. Stores do not carry large inventories as they did in the past. As far as the addiction factor goes, we have just went through a pandemic where many people had to go cold turkey. I can guess many have been weaned off, and many are cutting down to conserve funds.
Are some agencies raising prices because the ladies are complaining that they are making less? If they are they are shooting themselves in the foot. If ladies are not making as much as they did previously even with the increased prices they may double time with a lower priced agency. Clients may also be looking for other agencies to keep in their budgets. Will there be new comers into the biz? I think eventually there will be. As well as ladies that were previously in the biz that will return. The barrier to entry/re-entry into the biz can be as low as a cell phone and an ad.
We are not are the worst times yet. The economy is still seeing high inflation and I am expecting an economic event where it will take us all out of the comfort zone. It is only when we hit bottom that the economy will start to recover. I suspect it will not be one event, it will be a series of events over many years. If this is the case and we have avoided a situation similar to the Great Depression of 1929 where there were U-man waiting in soup lines then were would have dodged a bullet.
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There are many reasons for the high prices of escorts one of them is greed, if you are attractive, young enough than you can charge more, another reason everything is getting more expensive, there could be more men in the GTA single and raising the demand, I did notice more mature escorts are getting more expensive than the young ones. It also could be more women find being a sugar baby better than escorting.
Thanks for your sharing your views @Ceiling Cat ; You summarized it well. There is something knows as the 'Wealth effect' -crazy RE gains over last 7-8 years, a lot RE speculation profit might be boosting SP demand, and RE gains getting dried up might have some affect there. Hopefully at some point lack of demand will put downward pressure on the prices. But I also feel the pain of Agencies; now they are competing with platforms like OnlyFans to hire top talent. Options like OnlyFans did not used to exist before 2016, and it really picked up during covid years. If SP can make decent income by just posting videos online, why would they come to this market. That could be one explanation for hot girls moving out of this industry - it's the lesser hot ones, who cannot make decent via other platforms may be choosing for this option.
I think the drastic change is due to the pandemic and the economy. FansOnly has very little to do with it. The 32 year old that works part time does not want her face on the internet, neither do many 20 year old girls. Then there is paranoia, just as I had to learn to cut my own hair, I have not been to a barber for 3 1/2 years. Many guys had to go cold turkey on SPs and they have been weaned off. Guys in their mid 30 to late 40s are scared for their jobs and future. Guys over 50 are careful for their retirement.
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I agree, neither they would want to work for strip clubs. SP is very discreet, and that's good.
This literally had no impact on the market what so ever.
