A provider friend of mine has raised her rates twice in the last two years (by $50 each) and each time grandfathered in her existing clients to stay at the old rate.

This summer has been a slow one for her (as well as for many escorts nationally) even though she is pretty and has very good reviews.

We live in a resort area and get innundated with affluent business visitors in the winter months. Even if this winter is  slower than last (due to the economy), she is still going to be one very busy lady.

Her plan is to work hard this winter and do well financially to make up for the poor summer.

The problem she foresees is that she will have to forego seeing many of her favorite established clients because they will be paying $100 less and can't compete for appointment times.

She doesn't want to offend or lose her regular clients by telling them they MUST all pay the current rate (because she will depend on a lot of these gentleman for next summer when the business guys leave).

I suggested she post a note that regulars may wish to voluntarily offer to pay her current fee this winter in order to get an apppointment in her busy schedule.

How does that sound? Any other suggestions?

"I suggested she post a note that regulars may wish to voluntarily offer to pay her current fee this winter in order to get an apppointment in her busy schedule."

thats a great suggestion, and one that many ladies that offer specials end up having when the boom time comes.  
if i meet a fellow while running a special that i like a lot and would love to see And i know that the reason he saw me then was because if His finances, then i will keep him grandfathered.
no reason to run off the real sweeties cos for a few $$$

if it were me, i'd do your suggestion but i'd make sure my sweeties on a budget know not to fret

have fun and play safe,
Nicole

Yuor "friend"  has what we call a very high class problem.

One train of thought is that she should make room for her regular clients regardless of the rate differential because they're the ones she looks to in the slower times.   Another train of thought is that even her regular clients can stop seeing her any time they like, for no reason, even though she has always shown them loyalty and favoritism in the past.

How about this:

She has an opening [pun] on Wednesday and treats it as First Come [pun] First Served ... then WHOEVER the person is (old versus new) determines the rate.

Yes .. she might not make quite as much money as if she stiffed [pun] the regulars in favor of the high rollers, but on the other hand ... if she's like a lot of providers I know, she blows [pun] that much every month at the Lancome counter anyway.

She has a high profit, low overhead business and ought to be making more money even in the slowest months than a lot of people in this country are making.

Yep .. she sure has a high class problem.

I don't really understand why she should feel unable to raise her fee to established clients.  If she is familiar with them, enjoys seeing them, wants to keep them as clients (especially as, from what you say, her work varies a lot according to the season) then hopefully they will also have built up some regard for her and would understand that inflation increases the overheads she has to meet just as it does with everybody else.

Chances are that her established clients will have had salary increases in the last two years, there doesn't seem any reason why she should not have one too.  They must enjoy meeting her or they wouldn't be regulars.  

Whatever she decides to do, I would suggest explaining it clearly to her existing clients so they know she values them. They might well prefer to pay more to be sure of seeing her when they want to, or they might prefer to wait till 'off season' when she could possibly offer her previous rates to existing clients.

When supply out weights demand, one is in a competetive market and one needs to decrease prices or offer additional value.  When demand out weights supply one can afford to increase prices or not offer as many value adds.  At the heart of things, you are a  business.  I do the same thing as a consultant.  My customers understand this and consider it part of the business climate they are in.  The trick is to know what others in your line of work are offering and how busy they are.  (Nice to have friends in the business)  If you are wrong, you will know it because no one will be buying your product.  Would I return if prices where raised.  Probably, as long as I thought it was fair and the product was worth it.  If they like the product, they will pay more in the peek session. A billing double standard just makes things all that much harder overall, especially without a non-disclosure agreement.  Just be consistant and dont change your prices every week.

When supply out weights demand, one be in some competetive market an' one needs t' decraise prices o' offa' addishunal value.  When demand out weights supply one kin afford t'incraise prices o' not offa' as many value adds.  At da damn heart o' shit, yo' ass be some  business. I do da same shit as some consultant.  Mah customa's dig dis an' consida' it part o' da damn business climate they be in.  Da trick be t' know whut otha's in yo' line o' work be offerin' an' how busy they be. (down low, Supa' fine t' have homies in da business)  If yo' ass be wrong, yo' ass will know it becuz no one will be stealin' yo' product.  Would I return if prices where raised.  Probably, as long as I thought it wuz fair an' da damn product wuz wort' it.  Slap me some skin.  If they likes da product, they will pay mo' in da peek session. Some billin' double standard plum makes shit all dat much rocka' overall, especial-like without some non-disclosure agreement.  Plum be consistant an' dont change yo' prices every week.

And the dollar gets stronger... :-p

I guess my first question is what caused her to raise her rates twice in the last 2 years?  Maybe she has less business because she raised her rates.  Or else it sounds like she should have set winter and summer rates instead.  How competitive are her rates in her area?  

She needs to compute the cost of lost regulars.  Assume that she will lose these regulars, what will that do to her summer next year?  Is the lost $ per date in the winter worth the lost $$$$$ in the summer?  That extra $100 in the winter could cost her plenty in the long run.  Losing just 1 regular over this could cost her more next summer than she will make with the rate increase this winter.  

However I would want to feel pressured but not required to pay the additional rate.  Because then if I didn't and she had to cancel I would have to assume she blew me off for an affluent businessman.

Finally, she cant' have many regulars, because then her summer wouldn't be that slow...How many regulars are too few in the summer and too many in the winter?

Just my thoughts.

I'm a contractor in the attorney service industry. I have my own clients as well as sub-contracting from larger attorney services. I certainly don't make as much (per job) from the sub-contracted work but the steady volume more than makes up for the percentage that is cut off the top.
   Don't let your friend be blinded by the extra $ and forget about all the ancillary expenses made to get that extra $. Expenses that aren't incurred with her regulars.

My own personal opinion...if i were "grandfathered at the old rate" and, i was told either pay the new rate or be at end of the line....i prolly would not see this provider again.
just my opinion
Sham

You say she's raised her rates twice in the past 2 years.  In today's economy I find that to be excessive, unless her rates were way below market to begin with, which based on your post I somehow doubt.

As a consumer, in this hobby and in other areas of my life, I've learned that nothing is forever.  Prices change one way or another.  The whole concept of "grandfathering" in a service oriented endeavor is just good business.  But even that can have limitations.  Here's the compromise solution:  

If the rate has changed twice, "grandfather" at the last lower price.  For example, the original rate 2 years ago was 200.  She raised it to 250 and "grandfathered" regulars at the original 200.  When she ups her rate again, say to 300, those "grandfathered" regulars would be raised to the 250 that was her last prior rate.  That way she isn't losing "that much" by seeing a regular, yet she has shown them consideration, which they deserve.  And absolutely she should not "de-prioritize" her regulars because they pay less.  She has to remember that they're her bread and butter.  A bird in hand,  and all that stuff.

I was a "regular" to a provider near where I live.  In many ways she is the best available in this locale.  She recently raised her rates, and raised them from high market to way over market for this area.  She showed no consideration at all to her regulars.  Guess what?  Her pu**y can be lined with gold, but I wouldn't see her anymore.  And 3 other "regulars" of hers have said the same.  Just because she had a stone cold attitude about it.  

And a message to Carrie of London:  Maybe on your side of the pond people are getting regular salary increases, but the economic climate here is such that very few people are making much more money now than they did 2 years ago.  Unless, of course, your client list includes all of George W's friends.

My .02

F.

Simple solution. Established customers get $XX off current rate.

In addition to fortitude's ending comments, I would like to add that inflation could not be blamed for these increases.  Depending on the starting base, the percentage increase could be as high as a 50% in two years!!!  An annual increase of 50/hr on a 200 base is 25%, a 300 base is 17% and a 500 base is 10%.  Above 500, I wouldn't care because it is out of my league anyway.  Being that inflation has not been close to that rate in recent history, these increases are not based on inflation, but in the perceived value of the provider's performance (which I wouldn't begrudge).

Ladies should only raise their prices to manage the volume of business they are getting not in order to get more income.
It has a reverse effect.  Sounds like your friend tried the latter and is regretting it.
Has the quality of her sessions increased to match this?

--JohnnyS

Dey is der summer rates and den dey is der season rates.  Was is de problem?  When the season guys go home then the rates fall and the locals get a rate break.  If they want to play in the winter, pay the season rates.