Agree about getting extra quickie customers
[QUOTE=Clinton Bush]You should be working for the government to get the economy going again! In your example above by dropping her low rate from 150 to 125 she might also pick up a couple new clients to replace the 2 who left the hobby so maybe she can add another 2 x 125 or 250 to her 1750 for a total of 2000. If she is willing to do a few 75 or 100 quickies she might even be able to get back to her 2500 pre-recession earnings. We all have to work a little harder in this economy to make money.[/QUOTE]I think your are 100% correct.
In economics, there is a concept called Demand Elasticity. When demand is inelastic, it means that changes in price don't affect demand much. When demand is elastic, it means that changes in price do affect demand considerably. My theory is that, at the low end of the price range, escort demand is elastic. There are hobbyists that will pay 100, but not 150 or who will pay 50 but not 100. This is why there is always demand at the street level.
On the other hand, I think that demand is more inelastic at the higher price levels. Most guys that are willing to spend 200 will still spend 250 for good service. Probably jjust about anyone that is willing to spend 300 will go to 350 for the right escort.
So, at the low end of the price range, providers make more money with lower rates, at least to a point. But, at the higher price levels, they may do better by keeping their rates where they have been.
I still think, however, that the best overall strategy may be to keep the rates high at most time, but also to offer occasional specials for repeat clients to ensure that they do not defect. I, of course, make this suggestion completely objectively and without regard to the effect that those occasional specials might have on my own wallet
You know, someone out there who is earning a masters degree in econmics should do a thesis on this. Think of how much fun the research would be!
Something smells fishy about her....
[QUOTE=Haldol05]SO this girl is posting on backpage and CL #407-209-4226, cant find any info or research turns up nothin'. I'd come off 250, even in this economy for greek, lol, emails were not returned from her.
Any help is appreciated.[/QUOTE]
"blonde.jpg" is using the phone #4074705+85+0 and something about the ad strikes some similarity to the other number you posted...can't quite put my finger in it (and don't think I want to) but something smells extremely fishy about the ads using those 2 #'s.
Continuing the economic discussion
Op, You make a good point about first degree price discrimination. This, however, cannot be done in the advertising. While I have no direct experience, you may very well be correct that some escorts are providing discounts to their regulars while keeping the advertised prices high.
In general, I agree that the barriers to entry are low. However, I do not agree with you about perfect competition. Perfect competition assumes that the products available from the different suppliers are comparable. I think that we can all agree that there is a huge difference in the quality of escorts out there. The flip side of your $150 for a known customer versus $200 for a psycho is the hobbyist choosing $250 for a known GFE/PSE versus $150 for a overweight butterface that just lies there and complains when you take more than 5 minutes to finish.
I'm guessing that the economist you are talking about is the guy the wrote Freakonomics. I'll have to look that up. He's good reading.
I never meant to imply that quality equated to price
There are some wonderful ladies out there who choose to charge a lower amount and there are some not-so-wonderful ladies who try to get $$$$ and provide awful service in return. I was only suggesting the following:
-All providers are not the same. The quality of service varies. The menu of services available varies. The age, appearance, and attitude varies.
-As a result of this, a hobbyist may choose to go with a more expensive known provider than an unknown inexpensive provider.
I have certain qualities, both tangible intangible that look for. As was previously mentioned, sometimes it's just a matter of who "clicks". We all have had the YMMV experience. I'm sure that the same occurs on the provider side. One escort may think that a certain hobbyist is great and another may not like him at all.
In a nutshell, I was saying that this market really doesn't have perfect competition. Perfect competition requires comparable products/services and a free flow of information between buyers and sellers. The typical example is a corner with 4 gas station. All have basically the same product and the customer can see the prices of all 4 at the same time. In that situation, none of the gas stations can charge a higher price than the others without losing a whole lot of business.
I think we can all agree that this market is different. There is a wide variation in the marketplace from one escort to another. In part, due to legal issues, it is difficult for escorts and hobbyists to freely exchange information. My example of the high priced quality provider versus the low priced bad provider was just that, an example. It was not meant to suggest that this is necessarily the norm.
I think that this discussion has gotten to be way to technical. It's largelly my fault and I'm going shut up now.
I apologize if I offended anyone.