Can I ask why you say this mate or what you think will be happening?
Printable View
Its now the 12th .... what exactly was this big event that was predicted ???
When market regulation changes it is the new entrants who are more likely to adopt new models. Existing players will resist change and see no reason to change. They still have enough regular clients paying regular prices.
The pain of change is greater than the pain of staying the same. For example:
20 punters at 100$ = 2,000$ income
if the other shops are charging 80$ but the majority of customers don't know
Strategy A - Don't pass on any price/service change
2 lost customers
18 punters at 100$ = 1,800$
Strategy B - Pass on new pricing to everyone and keep everyone
20 punters at 60$ = 1,200$
You can see that you need to lose 40% of your customers before it makes sense to think about reviewing prices.
Strategy C - Selective pricing
Would be some way for shops to know if you are a new or old client. This we might see being done with shops having new 'advertised' numbers. Use the new number they know you are actively searching adverts, use legacy number and they know you are un-informed and will get the legacy rate.
Another consideration is that while the legislation has changed the cost base of the businesses hasn't. Owners still need to get volume of bookings. As long they get bookings then there is no need to change. Operators will need to renegotiate their landlord premium ie the premium that landlords are applying for turning a blind eye. That's one way for operators to start reducing the cost bases.
The same can be considered for the girls. Whereas the girls may have previously for some premium to do do illegal massage work, now that it is legal what incentive is there for them to accept less for what they can see as the same work, same premises? New girls will need to enter and will be happy at what is generally considered a very good income for the hours performed.
As I wrote in another thread, punters will need to let go of their regulars, let go of their familiar shops and seek out new operators and shops. Don't expect your current providers to reduce prices.
The market wont change unless YOU change your punting.
For shop owners here are some other strategies you can have for free from an internationally qualified business analyst. You are going to be following one of them anyway at least here is a selection so that you can choose wisely.
Strategy D - Premium
Differentiate your business and maintain prices with quality girls, clean rooms, fresh towels, good location. charge a premium price which can be justified with premium services. Wear cute outfits.
Strategy E - Cheap and cheerful
Lower cost but clean location. Give those boilers an organised place to work.
Strategy F- Bundles and Loyalty cards
Make your pricing look super competitive by bundling services that are cheaper for you to provide while making our service look more complete. So instead of a 30 min 'service' which can easily be compared. You may offer 30 minute massage with one (low cost actual masseuse) girl, 30 minute service with another plus 30% off next visit. Maybe some body treatments or shaves suit some guys for which they will pay more if they think they will get a BJ from her after.
And forgot to mention. I'll be getting a new punting number so I am not saved in any of the shop lists.