Business Discussion . Drop in Business .

I'm going to bring it up, since I've been here in Ottawa, I've heard it from everyone that I know or have met in the industry.

I've felt it in Thunder Bay, thinking at first that maybe it was just Xmas, then maybe it's just the after Xmas pinch, then maybe the heat... there was always something that was affecting business in general.

The economy has started to fix itself now but we're not seeing that in this industry.

There are a lot more women in the industry now, that I've heard to be an excuse, however, we are currently going through a definite drop in business as I've heard it to be the slowest time ever.

I'm wondering, being new to the business, if this is an recurring trend *(Long term and short term). What factors do you guys and girls think that is causing this?

Coming from a business background, I'm interested in stuff like this, not only to profit my own business, obviously, but also to see how this industry relates to the regular retail business. All in all, aside from the product, they are quite similar.

Additional Comments:

I have my own ideas on what's up a little, but most come from comments from clients and so forth.

Heat plays a part in people getting together. It's fun to be hot n sweaty, but not when you walk in through the door. I believe that advertising A/C would surely attract what clients have enough energy to get up out of the cool bathtub and foray into the sweltering day...

An increase in women... I can count the girls in TBay on one hand, two hands... Yeah there are more people that are getting into the business for sure. I think that it's great, but it's upping the ante for the girls who were already there.

I also have a strange feeling that rates play a part. Not having set wages, like min wage and stuff, I overheard in Tbay that an agency was undercutting me for GFE by 65-70% by the hour. WHAT!?

Those are my thoughts on the strange stagnation of this business...

Lindsay, I agre with you on most things but I don't think anything is out of our hands... Not in business anyways. Good business is all about control. I think that although I can't control what's presently happening, I can ajlust the way my business works and runs for the future to cope for upcoming trends that I forecast, because I'm tracking and following what's going on now.

I don't like feeling helpless in a business that has no one else but my at the helm. I think that's why I was looking for trends. Like when the tech boom happened here, SPs were turning down calls. Obviously an influx of money and "working hours" maintained a profitable time for SPs that were here at that moment.

That's the manager in me... I just wanna understand it, so I can fix it. :)

The economy has started to fix itself now but we're not seeing that in this industry.

 

Well Bank of Canada just recently revised growth expectations downwards. In the US they are in danger of tipping into a double dip recession, and debt/deficits are becoming a growning concern in both US/Canada. Growing deficits lead to tax increases, cuts in public spending and sometimes higher interest rates. None of which are good for the economy.

I would say the trend (and I believe there is one) is consumer confidence. Even if your clients are secure in their jobs if the constant refrain is the economy is weak they won't feel as wealthy. SP's are in a luxury goods industry, so I would say you're very exposed to the business cycle (people cut luxury spending first). As well since there are few barriers for someone to get into your business and little start up costs, it becomes attractive for a wide range of competitors, from full time SP's to casual ones using the industry to supplement their income.

I would guess the current trends will continue until the recovery is much more advanced and consumers again begin to feel that they have the disposable income available to spend on luxury items or services.

I would estimate that to be in the latter half of 2011 at the earliest perhaps later depending on how the US handles its looming deficit crisis.

Awesome :) This is what Head Office used to send us memos about and whatnot. Hehehe.

Thanks Scott. As I stated before I just like knowing what's going on.

Maybe I need to put in a customer loyalty program... Points based hahaha no maybe visit-based.

Sara's Super Savercard

For every ten hours, get one free :)

*Stamps are only valid from Sara, time sensitive, and you must answer a skill-testing question upon validation of said free hour.*

LOL!

A very interesting discussion. I know that the current slump in the market affects my investment portfolio. Does it really have such a noticeable effect on the escort business that Sara sees?

Hard economic times were mentioned as one of the factors that affect rates in an earlier thread. (see http://www.cerb.ca/vbulletin/showthread.php?t=26492

Many have already said the key reasons. Demand and supply is definitely an issue. Economy/job security is the other factor. With the rate hike not too long ago, those having a floating mortgage will be affected. Of course, there are probably more.

Well Bank of Canada just recently revised growth expectations downwards. In the US they are in danger of tipping into a double dip recession, and debt/deficits are becoming a growning concern in both US/Canada. Growing deficits lead to tax increases, cuts in public spending and sometimes higher interest rates. None of which are good for the economy.

 

I would say the trend (and I believe there is one) is consumer confidence. Even if your clients are secure in their jobs if the constant refrain is the economy is weak they won't feel as wealthy. SP's are in a luxury goods industry, so I would say you're very exposed to the business cycle (people cut luxury spending first). As well since there are few barriers for someone to get into your business and little start up costs, it becomes attractive for a wide range of competitors, from full time SP's to casual ones using the industry to supplement their income.

 

I would guess the current trends will continue until the recovery is much more advanced and consumers again begin to feel that they have the disposable income available to spend on luxury items or services.

 

I would estimate that to be in the latter half of 2011 at the earliest perhaps later depending on how the US handles its looming deficit crisis.

You brought up very good points Scott (I was not able to give your post a reputation, so I decided to quote and add upon your post).

The dancer SPs whom I know plenty also complain of a dip in their business (other factors like open CR and no smoking by laws affect play a role too), so the slow down is not limited to escorts.

On the top of all above quoted the European debt crisis (especially Greece and Spain) and huge US budget dificit predicted to continue for years is driving down consumer confidents in those regions. Both US and EU are in the danger of dipping into another recession as a result and we all know Canada is not insulated from international events if that happens Canada will be dragged down too (even though Canada is doing much better relative to US and EU), therefore consumer confidence here at home is adversely affected as well.

In Ottawa specifically, the Hi-Tech industries have not yet fully recovered and that affects many Ottawans. Also, Ottawa being a govenment town, a freeze on the salary of most civil servants has not help either while private industries still recovering from the recent (foreign born) credit crisis-related recession, whereas we all know the prices of everything, especially housing is going through the ceiling which means higher rental (for those who rent) or mortgage (for new buyers) payments and thus less disposable income for consumers to spend on, especially on luxury items such as entertainment (escorts, dancers). I too anticipate that the slowdown will continue for another couple of years (until mid 2012) before consumers will feel confident enough to start spending as before the credit crisis started (prior to 2008 ).

Well Sara since I'm of the business angle to I'll apply my academic and practical knowledge along with my own views as a client. I think this business is somewhat impacted by economic trends but not to the degree of other industries. The market is very local and we're talking about a service that most clients would try and maintain. An important business reality for this industry would be to segment the clientele. I suspect we have our general trends but expect that many of us could be segmented. I would fall into the category of;

'Not Frequent But Loyal Spender'.

What this means is that I may hobby about 1/month. But I am not a bargain hunter and price isn't important. I seek a positive experience for myself and the lady. I like the full GFE and playfulness in-between times we meet. I am loyal and will stick with something good when I find it.

So for me my patterns won't vary much. I'm not that elastic in my choices or my budget.

Perhaps a boring hobbiest but one a good SP would value.

(That's my Business Analysis)

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I think Scott is bang on. It has to do with the state of the economy and how it influences consumer confidence. The latest report is that the recovery is losing steam which has created fear of a double dip recession. I know I am still hurting from a 40% drop in the value of my portfolio since the crash. It has rebounded somewhat, but the Dow in the States is at the same level now as it was back in 2002. The TSX is currently around 11,700, which is a far cry from 14,000 and 15,000 respectively in 2007. At best, the economy can expect little to moderate growth over the next few years, so most investors have either lost money or are just breaking even. Add to that the uncertainty in the job market, and you have the perfect storm.

For me, I'm focusing on recouping my losses, paying down the mortgage and doing extensive renovations to my condo which requires a lot of capital. As such, I have scaled back on discretionary expenditures such as hobbying in order to compensate. Granted, my specific situation is not the same as someone else's. However, in my opinion the general theme rings true overall.

I concur with Winnipegcub completely, my play won't change provided I find the appropriate dance partner. It's all about the experience to me!

Peace

MG

Thanks for all the views. :) I think that I've gotten an idea of what I want to do, as I only see a few clients a week anyway. I focus on the loyal ones :) I like knowing who I'm seeing. I can work with that.

I believe that luxury spending has taken a downturn, my stint at futureshop was at the beginning of that... Myself personally have made moves to pay down debt in my personal life, therefore cutting out some of my luxuries. *(I'm pretty self-maintaining however... lol)

I didn't want to sound bitchy, I hope I didn't, I'm just a small business owner concerned a little lol ;)

I've been in the sex industry for 3 years now and although there have been ups and downs, overall business is good and steady. I'm by no means an economic expert, but I read that the sex industry is one of the industries that is close to being "recession-proof." Also, Ottawa is much better because we are a government town. Business is good from my view! Maybe I just have a different opinion of what constitutes "good" in this context?

Personally my head is fu@king spinning around! I don't think I ever seen so many ladies now advertising here and on EC and then lets add in the touring ladies.

If I may use this.."life is like a box of chocolates"

My life is like a box of chocolates because it's sweeteer than you could imagine!

I'm really trying to keep abreast of all this great action for Ottawa, so my assumption would be that biz must be good?;-)

Now back to "my notes" (thanks mod it keeps my appointments in order). Just so many women..just so little time....:mrgreen:

I've been in the sex industry for 3 years now and although there have been ups and downs' date=' overall business is good and steady. I'm by no means an economic expert, but I read that the sex industry is one of the industries that is close to being "recession-proof." Also, Ottawa is much better because we are a government town. Business is good from my view! Maybe I just have a different opinion of what constitutes "good" in this context?[/quote']

 

I think you're correct. Looking at it from a different perspective, sexwork may actually be bucking the trend in the sense that the industry can see a rise in business (at least to a certain degree) when times are tough. e.g. (The yearning for an escape from the doldrums of a lack lustre reality may be at play).

Having been in the airline business for over 25 years I have seen a lot of great companies come and go.......and have been involved in bankruptcies, takeovers and so on.......

HOWEVER, any VERY WELL RUN business, that caters to its clients, and provides a good quality service, will endure during even the roughest of times....

Bad economic times, weed out the poorest run businesses first......

those that maintain a high level of service, keep client satisfaction high, that are always innovative, and keep an eye on your competition.....will not only survive but strive in tough times, as others go under......

While I do not confess to understanding the SP business, no doubt basic economic rules apply.....provide a better service that gives excellent value to your clients, and you will endure......

This is a fascinating discussion! I would agree that the sex industry is among one of the most inelastic when it comes to spending "after-tax" dollars.

One could even make a case that in the vein of the avante garde study of "behavioral finance," spending for sex (be it for the services of a SP or MA, or going out to SCs, etc.) is not really discretionary. Slower, perhaps, but likely still a priority for those that value getting some (and who doesn't?), regardless of income level.

The marketing challenge for the SP is how to move hobbying up the list of spending priorities for the hobbiest.

Personally, I hope for you, SaraMQ, and all of the other fine women who choose to earn or supplement your livelihoods as SPs or MAs, or work as dances in SCs; that you all not debase your value by offering something like a points or rewards program. I say personally only because, as some others have said, I prefer a GFE, and not a commodity.

I think the beautiful and very hot July has played a significant role. Lets face it guys, when its friggin sweltering hot, you dont feel as energetic and you just want to chill and wait for it to cool down.

I notice when the weather is 26c and under, business is better. 30 plus and it slows right down.

I notice when the weather is 26c and under, business is better. 30 plus and it slows right down.

when its hot eye candy at beaches.....just saying

For myself, and probably many other government employees, my salary is frozen or about to be. Recent increases to expenses caused by the HST and the steadily increasing costs of all products services in general has eroded my "fun" money.

My decsion to indulge myself is dependant on having time/opportunity and the amount of uncommited funds in my jeans. (I have a budget for personal expenses) A year ago, those funds were easily in the three bills, but I have noticed lately, that the amount is quite a bit less. As a result, I choose to do an activity which costs correspondingly less.

I also have no intention of seeking out those SPs which offer a budget experience because I have rarely, if ever, felt I got what I was looking for, experience wise. So, i find myself hobbying much less, actually, rarely over the last 12 months. I don't know that i am a typical client, but I am certain there are many people in a similar situation to me.

Another contributing factor is that the number of ladies offering their services has increased notably over the last two years. This has to affect business as shrinking dollars are being spread among a lager number of providers.

I was just reading through the threads, and I wondered...

With all the increasing ladies in the business, I wonder if there's any chance that more hobbiests numbers are on the rise as well? I thought that maybe the factors that make the job more appealing to the women, also entice the men and women that have thought of booking but never have, to do...

Society is more accepting to the sex industry as a whole. Cable itself teeters on the brink of pornography at times, but no one bothers to complain anymore. With shows like Secret Diary of a Call Girl, escorting is made to be bright and sunny, perhaps making it more acceptable to women.

It's just a thought, but has any one noticed more new clients these days, to support my idea? or am I just off on a tangent... Lol.

Generations change and if everything has to remain balanced in the world, then hopefully we'll start seeing more members on the hobbiest side?

Any thoughts on that?

With all the increasing ladies in the business, I wonder if there's any chance that more hobbiests numbers are on the rise as well?

My favourite economy theory in a nutshell, "Supply creates its own demand"

Really the only people of can answer this question are the ladies themselves, do you ladies see an increase of new clients while having regulars remain constant or increase.

My conjecture is the increase in ladies causes a fragmentation in the hobbiests. More ladies equals more ladies of a certain characteristic (spinners, non-spinners, bbw, blondes, brunette etc). Allowing a hobbiest to play with individuals having those characteristics he fancies without having to venture out into new groups.

Sara - I must say you have a rare and outstanding attitude in that your truly see yourself for what you as an indy SP - a small business owner. You also have the intelligence to realize that while you cannot change the economy as a whole you DO have control over how well you own business does.

First, you have a big head start. Most ladies, and by most I mean the vast majority, do not understand or want to admit that they are small business owners. A great number take the attitude that "I'm only doing this for a short period of time", thus they don't even want or try to become good at it. In fact I truly believe a number subconsciously undermine their own success in this industry by not being good at the business aspects. Keep in mind these thoughts do not apply to most of the active ladies here on CERB but to the large number that are not.

So first of all there are tons of good books that you can read that are oriented to small business in general. These cover all the basics such as image, advertising, customer service and so on.

In terms of the sex industry I believe there are a few industry-specific truisms that are simply "part of the business". The first is that it some or even many clients like to play the field and continually see new girls. So you can give them great service but they won't repeat. However many guys do like to repeat at least sometimes and when they do you will get "the second visit".

To me this second visit is the one that most SP's mess up. A client on a second visit is one that could or could not turn into a regular (your absolute bread and butter to survive emotionally and financially in this business). Most SP's treat the second date as a bit of a holiday and give a more relaxed level of service because they don't have that first date anxiety that comes with meeting a client for the first time.

View second dates as your golden opportunity to "up your level" with this client and turn him into a regular. How do you do this? Well you need to up your game in some way that clicks with the client. This will vary with each client and you need to spend time and mental energy to find out what they want.

When contacted for that second date start there. Spend more time communicating (be it email, pm, on the phone or even a text). Communicate how happy you are to see them again. Ask if there something special they'd like to do this time now that you've had a chance to already get to know one another. Ask if there is something you could wear. Ask if there something extra they'd like to do. Ask if there some other positions they'd like to try or suggest that you have a couple of special ones that you like that you'd like to try with them. In short give the client more attention and make it a better experience than the first one. Many guys have a huge gap between their sexual fantasies and their actual sexual experiences. Build your regular business with clients by slowly getting them to reveal what these desires are (a tough process I'll admin) and then fulfilling them.

Many clients would like to become better lovers. This involves walking a fine line between the fragile male ego. Imply they are not good and you risk a bad time. Find ways to encourage them when they are doing something right and give gentle guidance on 'what you like' so they end up feeling they've become better lovers in some way by the end of the session. Most SP's are way too passive - actively suggest new positions or things that you think they may like. Remember many guys are very repressed sexually. Of course many guys don't want to become better lovers, they want simply to receive pleasure. You need to recognize these types too and give them what the want.

Hunt down Dale Carnegie's "How To Win Friends and Influence People". Read it cover to cover. It is a terrifying book in many ways as it could a person into a manipulative and insincere person. However there is a ton of awesome material in that everyone can apply to their own personalities to make themselves more successful in dealing with people. It is easily one of the most brilliant and insightful works on human psychology ever written.

Your business is the selling of sex. Get very, very good at it. Read as much as you can and work with your best clients to expand and perfect your techniques. Your body and looks are part of what you sell. Shocking red hair may be great personal expression but it may not be what clients are seeking. You have to find a balance between your own self expression and what is good for business.

I have met many a large number of ladies in the business over the years and to be honest most completely blow it on the business side. There are the big ones - cancelling and no-showing on appointments, missing emails, not returning messages, being rude, giving poor service. You can imagine how quickly your local hair stylist would last giving similar service.

Good luck. Times are indeed slow. Use this is an opportunity to learn how develop more long term regular clients instead of being dependent on a steady stream of new clients.