Markets Make Better Decisions tha Managers

"Markets Make Better Decisions than Managers" is a chapter in Andy Kessler's business book "Eat People".

In a nutshell, it's letting the market set the price.

He uses the example of employee #9 at Google being in charge of revenue generation. He wrote code that priced the ads via auction.

I'm wondering how to implement this in my business as a provider?

I see ISOs as being a "reverse eBay" for the hobbyists (e.g. "PM me your rates".)

What would mirror this for providers?

Not sure what would mirror the ISO for providers other than a name your price type ad...of course imagine all the laughable request and overhead of sorting through the responses.
I think this month would be a great research month as so many drivers in the market are at play.
Holidays overspending, missed wages due to weather, increased utility bills, winter break and finals, increase in petty crime... Many more factors I am sure but in the grand scale i imagine a lean month in earnings and available funds across both sides of the board.

If Gina were to allow the clients to have a fast track type forum where those with a minimum number of OKs could post an ISO, providers might find screening potential clients who are looking for something much quicker than the abused Requests and ISO on this site.

Providers can edit and delete their P411 posts in the ad forum but that is not allowed here.

Heck, if ECCIE had a forum that was ONLY for ISO/Requests for immediate (within say 4 hours) appointment related threads that only men could post in and that would be pruned automatically after a post is 12 hours old that would be great!

I hate iso, soo many want to pay you in trident layers lol

I'm not sure where you would do this, but here's an idea. Consider it a brainstorm in need of some refinement. That means don't pick holes in it, but try to figure out a way to make it work if you're not happy with it as presented.

Your ad says, "I have three one-hour appointments available on Monday, in these windows: 9-11:30, 12-2:30, and 4-6:30. E-mail (or PM) me with your time request and the amount you think is appropriate for that time. Subject line must follow this format: Day, first hour of requested window, amount; e.g. 'Monday, 12, $250.' Include screening information and any additional contact information in the text of your e-mail. In case of a tie, the winner will be chosen based on the time-stamp of the e-mail. In any and all cases, I reserve the right to see whom I want, at what time I choose, at whatever rate I deem appropriate."

...

I'm wondering how to implement this in my business as a provider?

I see ISOs as being a "reverse eBay" for the hobbyists (e.g. "PM me your rates".)

What would mirror this for providers? Originally Posted by HoneyRose

I don't really see "PM your rates" as being reverse eBay-ish, but if dudes are outright asking you to 'cut a deal' in ISO I would.

As far as what would mirror this for providers in marketing, even though I am a Gent and don't like to see SO MANY $300/hr rates, auctioning your services seems 3rd World Barterish.

I am a believer in what made this country great was a Capitalist system that discourages bartering, you paid for quality and service and the volume of your purchases established your wholesale or retail pricing...But now I've come to dislike Walmart's business ethics and I refuse to step foot in one if I can help it and could care less if they were giving shit away.

DallasTxBaby, I would love to show you my 'trident', well maybe it's a harpoon.

These are some wonderful food for thought!

Thanks everyone.

What got me thinking was the peculiar situation Friday. It was a day of dreadful ice. Someone posted a thread asking who was working and I responded.

That day was crazy with responses!! I was turning people away.

My room-mate offered a "Winter Storm Warning Special" rate Friday, not realizing that it was an awesome hobbying day with no discount required. Rather than trying to guess which days would be tough for hobbyists to get out, it would have been awesome to let the market tell us.

I was also thinking that if guys could put money into their request it would have helped them in this way: I prefer someone I've seen before over someone new. I prefer someone with P411 membership over someone with provider references.

Yet, if a gentleman who was new to me and who didn't belong to P411 offered a higher price, he could have moved up the desirability scale LOL!

On the other hand, if it's a dead week, someone offering a lower price could become more desirable

The reason I say it's the mirror or hobbyists using ISO is that a hobbyist who gets a PM from various providers can weigh so many criteria!
Is it someone he saw before and enjoyed?
Is it someone new he's been wanting to see?
Is her incall near him?
Is the rate good for him **AT THIS MOMENT/on this day*** (rate he can pay may fluctuate)

It's the instant information aspect of it. He knows who is available in that window and what her exact rate right now is.

(ebay was a bad choice of comparisons)

Sounds like you might be onto something.

He wrote code that priced the ads via auction.

I'm wondering how to implement this in my business as a provider? Originally Posted by HoneyRose

Well, now that gives "Dutch Auction" a whole new meaning!

Provider Priceline. Name Your Own Price...

I hate iso, soo many want to pay you in trident layers lol Originally Posted by dallastxbaby

I've heard of Trident gum but thought "trident layers" was some sort of egg producing chicken. I was going to offer you two chickens and a rooster to sweeten the ante.

It does sound like fun to have a provider auction for open spots. A reserve price could be set and bidders could PM offers. At a set time, the provider could post the winning bidder and close the thread.

In the spirit of eBay, a "second chance" offer could be made to the losing bidders to fill additional openings at the winning bidders price. Does eBay still do that or is that a pre-PayPal feature?

All bidders must make an earnest money deposit. Place it in a brown paper bag and PM your phone number to me. I'll text the location for your drop and see that the lady gets it if you win. The losers are, well, losers.

How about this:

Post an ad announcing the auction.

Keep your Showcase, and perhaps Sig line, updated with auction results.

Keep the auction period short. A few days at most.

Once the auction is closed, allow the winner and the next 2-3 guys (I pulled that number out of my hat; could be more or less) to accept the offer.

Start another auction after all prizes have been awarded.

I'm sure there are a number of variables I haven't considered, but thought I'd offer up an idea in an attempt to be creative.

Best of luck, whatever you decide!

How about this:

Post an ad announcing the auction.
Originally Posted by TinMan

A pretty hot gal did an auction on here not that long ago.

But unlike Ebay, there is NO way to monitor the truth in bids.

How many of her WK crowd would keep bumping it up so she could get some sucker to over pay?

Ebay tries to bust shill bidders all the time but they don't have much luck.

Maybe when Mya Michelle returns from her vacation she can give courses on how to have an auction... <sarc>

A pretty hot gal did an auction on here not that long ago.

But unlike Ebay, there is NO way to monitor the truth in bids.

How many of her WK crowd would keep bumping it up so she could get some sucker to over pay?

Ebay tries to bust shill bidders all the time but they don't have much luck.

Maybe when Mya Michelle returns from her vacation she can give courses on how to have an auction... <sarc> Originally Posted by LazurusLong

Looking at it from my perspective (which is the only one I care about), I believe the woman is only doing herself a disservice if she falsifies the bids. If she says her high bid is $200, when it's only $150, so what? Unless it's a lady I might be interested in at $300, I'm probably going to say "too rich for my blood", and move on. She's wasted her time unless she happens to get a bunch of guys to commit at $200. If that happens, the market has worked, thus proving her point.

It is more likely guys will bid in, then not follow through. That's why she should keep the bid period and open period to complete the transaction short. If the high bid is $150, and she has 3 guys who say they'll close the deal at that price, give them 24 hours to do so, then open up the bidding again.

Not sure what would mirror the ISO for providers other than a name your price type ad...of course imagine all the laughable request and overhead of sorting through the responses.
I think this month would be a great research month as so many drivers in the market are at play.
Holidays overspending, missed wages due to weather, increased utility bills, winter break and finals, increase in petty crime... Many more factors I am sure but in the grand scale i imagine a lean month in earnings and available funds across both sides of the board. Originally Posted by bored@home

I've done a "Priceline, Name Your Own Price" deal many many times over the years. Yes, you'll always get a couple of asshats who think offering 40 bucks is "cute", but for the most part, people are fairly reasonable. However, I've found that doing it in a "down" month seldom goes as well as when I offer it during a "flush" month. For whatever reason, economic norms in regards to recreational spending just don't apply in this particular sector the way one might expect. It is much like the "lower your rates for more business" argument... I've done more than one experiment that has shown that to be true ONLY to a point... drop too low, business plummets. The hobby market does not trend the way that most recreational markets do.