RATES: Something I don't understand...

[Perry Mason]

Why is it that SP's and MPA's who quote 30, 60 and 90 minute rates quote the 90 minutes at what they quote for the 30 minutes PLUS the 60 minutes?

That is, for example: 30 mins. = $160, 60 mins. = $260, 90 mins. = $420 -- often, more!

If I were an SP or MPA I would quote the 90 min. rate to make it so attractive that it would be hard for the clients to resist. For example, 60 mins. = $260, 90 mins. = $350...

It takes no more time, preparation or expense [overhead] to do a 90 minute date than a 60 minute date... the extra $90 in my example is pure gravy!!! Cuts down on the number of dates they need to do to earn the same amount of money or more! And more relaxing, for both provider and client, too.

It applies to 60 minute and 120 minute rates, too... yet most of them simply double the 60 minute rate to do a 120 minute date.

Marketing 101: Fewer dates, more income per date! Same logic as applies to the 30 and 60 minute rates...

Poor marketing and merchandising fundamentals, I think!

Perry

 

[MPAsquared]

Why is it that SP's and MPA's who quote 30, 60 and 90 minute rates quote the 90 minutes at what they quote for the 30 minutes PLUS the 60 minutes?

That is, for example: 30 mins. = $160, 60 mins. = $260, 90 mins. = $420 -- often, more!

If I were an SP or MPA I would quote the 90 min. rate to make it so attractive that it would be hard for the clients to resist. For example, 60 mins. = $260, 90 mins. = $350...

It takes no more time, preparation or expense [overhead] to do a 90 minute date than a 60 minute date... the extra $90 in my example is pure gravy!!! Cuts down on the number of dates they need to do to earn the same amount of money or more! And more relaxing, for both provider and client, too.

It applies to 60 minute and 120 minute rates, too... yet most of them simply double the 60 minute rate to do a 120 minute date.

Marketing 101: Fewer dates, more income per date! Same logic as applies to the 30 and 60 minute rates...

Poor marketing and merchandising fundamentals, I think!

Perry

I can't speak for SP's, but it most definitely takes more time. 30mins more. If an MPA can see 3 guys for 30mins each, why would she cut her rate for a 90 min? I get the premise of what you are saying...discount so a guy stays longer. However, I truly believe that when u discount a service it loses its value. AND at MUSE we have other incentives for length/repeats/retention.

 

[wigglee]

I can't speak for SP's, but it most definitely takes more time. 30mins more. If an MPA can see 3 guys for 30mins each, why would she cut her rate for a 90 min? I get the premise of what you are saying...discount so a guy stays longer. However, I truly believe that when u discount a service it loses its value. AND at MUSE we have other incentives for length/repeats/retention.

why? because she is probably not booking back to back with no breaks, so the 90 min is better than the shorter sessions with dead time in between. Generally , in all things, you get a discount for buying volume.

 

[MPAsquared]

Depends on the girl/spa. In a busy place or for a busy girl, she does have a full schedule.

For sure! Hence our Packages, monthly promotions, etc!

Personally, I feel the girls shouldn't take a hit, the house should.

 

[DocOdd]

The reason they don't have special hour and a half rates is probably simplicity. As for the reason SPs don't have more discounts for long sessions, many indies do for regulars. But generally the guys who are interested in long sessions are the less price-conscious guys, so often they'll be willing to pay full price for the extra hours. Getting the big payout from a long full-price session once in a while is presumably worth more than getting a few extra long sessions by offering discounts. And, of course, if they do discounts for regulars but don't have a standard long session discount, they can get the best of both worlds; more long sessions (with regulars), and still get some long full-price sessions with those willing to spend a lot.

 

[d_jedi]

Personally, I go for the short sessions.. because there really is no incentive to do longer ones. If two 30 min sessions cost the same as one 60 min.. doing the 30 mins means I can come (double entendre!) twice as often.

 

[shack]

Why is it that SP's and MPA's who quote 30, 60 and 90 minute rates quote the 90 minutes at what they quote for the 30 minutes PLUS the 60 minutes?

Because they use zero logic as it applies to economies of scale. I've gotten into arguments with more than one agency over their stupidity in this matter.

 

[Casey.xox]

Regulars (the tried and true that I enjoy) got regular discounted prices for booking longer sessions. I'd rather book a client for 30 min the first time I see them. It would not be nice to book 1.5 hrs with someone I've never met before. Who knows they could be like!

 

[d_jedi]

Regulars (the tried and true that I enjoy) got regular discounted prices for booking longer sessions. I'd rather book a client for 30 min the first time I see them. It would not be nice to book 1.5 hrs with someone I've never met before. Who knows they could be like!

Who brought up the topic of discounts in these cases?

 

[fuji]

Yeah you're being ripped off at 90 minutes. Your first two quoted prices imply $60 to walk through the door, fixed, plus $3.33 per minute. That gives $160/30, $260/60, and predicts $360/90. Your suggested $350/90 would have her discounting her time by 11 cents per minute for the longer sessions--$360/90 is probably fairer, assuming that her time has a constant value, and there's a fixed cost for cleaning up after you of $60.

If you are paying $420/90 then while you still presumably pay $60 to walk through the door, the per minute rate has risen to $4/minute.

 

[Perry Mason]

fuji...

Like you so often do, your analysis is so over the top that your logic falls apart.

I doubt if anyone in their right mind breaks down these things so that it comes out like the meter on a taxi!

What next? Break it down to the number of strokes per shot on goal?

Perry

 

[Carvher]

I agree with Perry Mason. This is something that has never made any sense to me at all.

Everybody goes once in a 30 minute session but not everybody is going to go twice on a 60 minute and very very few guys are going to do it 3 times in a 90 minute session.
For a lot of guys they just want the extra time to relax and talk, therefore it is easier money for the SP.

Imagine having to do six 30 minute sessions in a span of 4 hours - that's not easy money but the way most SP's charge, it is the best deal for us.
This is why I usually go for 30 minutes, not because I can't afford it but I get way more bang for my buck.

 

[fuji]

I doubt if anyone in their right mind breaks down these things so that it comes out like the meter on a taxi!

You are right that few will break it down. What they generally do instead is apply the principles intuitively, just exactly as you did. You came up with a number that was within $10 of the number that proper analysis predicts--a difference of less than 3% on a $360 price. That is to be expected--after hundreds of years of doing business, the average person is pretty good at intuitively figuring out a fair price. So while it's true most people won't bring to bear the analytical machinery that I did, their intuitive expectations will generally be in that ballpark. YOur guess that $350 should be a fair price being a case very much in point--that's within 3% of the correct answer on a b-school exam!

The sex trade is a business like any other. She has a fixed cost associated with performing ANY service, and then on top of that she needs to be paid for her time. You may think viewing it that way is over the top, but it's also correct.

I do not deal often with MPA's, but I find the pricing models in effect at escort agencies to be generally in line with sound business practices. In other words, with a little noise, pricing roughly reflects fixed cost plus variable cost, adjusted by demand, like any business school would teach. To take it one further notch over the top, as there's a large number of customers and a large number of providers, for a product that is not quite, but almost interchangeable--you would expect very little in the way of market rents, it's a classic monopolistic competition scenario. Therefore pricing will generally be on a cost plus basis, and so fixed cost plus variable cost, or to put it another way, cleanup cost plus the cost of her time, should be the way it's priced.

To me this is all pretty ho hum. The interesting topic is why is an SP/MPA's time worth per hour what it is. It's a service in theory any woman can provide, but for moral reasons, most women won't provide. So supply and demand kicks in and ratchets up the price. Or.. is there another way of looking at that? Is there some risk? Some other opportunity cost? The classic analysis of prostitution is that the opportunity cost is marriage, but in the modern world, there are a lot of men who have a fundamental respect for whores (I use the word lovingly) and are willing to marry them. So the cost of paid sex should drop as the opportunity cost declines--but it hasn't. So interesting. What the heck is going on there?

 

[DELETDrileydaniels]

 

[Hurricane Hank]

You guys are missing the obvious. Perhaps those girl are just really poor at math.

 

[Toronto`s Finest]

Poor at math, lol ... that's good . We find some guys want 1hr but only take 45min or so. Thus the 90min is not that popular anyway. For incall most are in a hurry & do 30min. We have the odd few who want to do 3 hrs & we give a discount.

 

[mrsCALoki]

Poor marketing and merchandising fundamentals, I think!

Perry

You are using the wrong model. And the model each girl or establishment uses will be based on many factors.

When my room mate (She was doing her MBA) and I disused marketing myself in Toronto our thought process was:

Based on:
I was in the business for a short time to pay off debt. Target was $40,000 and retire.
I would only be available for a few full weeks and weekends in Toronto.
The criminal risk of doing it in NY state was too high.
Based on the pictures of the existing SPs I would be able to get top dollar per hour.

So, I had a premium product with very limited availability. Very limited hours available.
It seemed there were 3 basic types of clients:
Low disposable $ very price point sensitive clients. Most might go from HH to H if they perceived it a deal.
Higher disposable $ but more selective clients. Most would start with a H and might go for longer if they were delighted.
Guys who can afford to get whatever the want

Oh and combinations of the 3 for whatever reason.


My plan was to not even bother trying to attract the HH crowed. To low a return to bother with them. I felt I could and should work 4 to 6 hours a day maximum both to maintain my sanity and to provide the service that would earn me extended times.

By the time I flew up for my first visit I had at least 2 clients booked every day for my standard rate of $500/hr 2 hr minimum.

My plan did not work out though. First client liked me so much he extended the visit and I had to cancel several other bookings but it all worked out.

The reason your model is not viable for most of us is simple. We do not have infinite product to sell. We have a very limited volume we can sell. We cannot just manufacture more to increase the quantity we can sell. As for set up time that gives us some down time to refresh ourselves and not have to be on stage. So why discount?

Add very limited availability to the equation, and discounting for volume is not that good an idea.

 

[Perry Mason]

You are using the wrong model. And the model each girl or establishment uses will be based on many factors.

I am not sure who is using the right model...

I know this: there are very few men who who have the time and can afford to burn money if they choose to do so... though, I suppose, there is room for a few SP's to build their business plan around them... in fact, they have!

On the other hand there are a good number of those who want to spend as little as possible because, after all, a shot on goal is just a shot on goal. These are the "Wham, bang -- thank you ma'am" who prefer to just cum and go. You can build a business plan around these, but those who have done so spend a lot of time on their back and back-to-back-to-back to make it work... to say nothing of the many other negatives.

The overwhelming majority, I think, are guys like me who don't mind spending some money so long as it represents value. We would prefer a much more relaxed 90 minute or 2 hour session and take time to get to know you and connect with you if it were possible, but your price structure makes it very unattractive... wasting hard earned money is not my style!

For an SP, too, this has to be a winner: fewer dates, more income per session.

If I were an Sp I would prefer doing 2 two hour dates much more than 4 one hour dates -- or 3 ninety minute dates than 5 one hour -- and it would make the business much more attractive and much less likely to burn me out...

But, to each her own!

However, when you say "We do not have infinite product to sell. We have a very limited volume we can sell. We cannot just manufacture more to increase the quantity we can sell" you prove my point! :thumb:

Perry

 

[mrsCALoki]

However, when you say "We do not have infinite product to sell. We have a very limited volume we can sell. We cannot just manufacture more to increase the quantity we can sell" you prove my point! :thumb:

Perry

I think there is some rule in supply economics that says if you have less product available than the market wants, you NEVER need to have sales or discounts to walk in trade.

Also, amusing clients for long periods of time is draining.

Also, there are more than enough men who will pay the full price.

However, none of the above applies to regulars. Once you get into the regular world you always get better deals.

 

[d_jedi]

I think there is some rule in supply economics that says if you have less product available than the market wants, you NEVER need to have sales or discounts to walk in trade.

Also, amusing clients for long periods of time is draining.

Also, there are more than enough men who will pay the full price.

However, none of the above applies to regulars. Once you get into the regular world you always get better deals.

There's also a rule of substitution in economics (I don't have a MBA, my technical terminology may be off..). Ex. if butter is too expensive, people will buy margarine instead.