Who am I to "tell" a provider what to charge, but since I've been asked, he goes
I've seen many a provider simply double their hourly rate to a 2 hour rate. I've also seen providers take 1/2 their hourly rate and add it to get a 90 min rate--i.e. 300 for 1 hour and $450 for 90 min. From my perspective as a client, that tells me the provider is not very creative and more inclined to simple numbers rather than true marketing. I think there are so many variables to consider when establishing rates. I think everyone would agree that the first hour of time is consumed with a lot of overhead considerations. If it is incall, the first hour's rate has to factor in any lodging costs. If the lady is touring, it also has to factor in transportation and incidentals. Then there is always advertising and other expenses. Other factors a touring provider has to consider is the number of expected dates she will have. There has to be some sort of "break even" point", If a provider is doing out call, she has nominal transportation fees along with the adverting, etc. If she tours but does out-call only, there are the traveling expenses mentioned above. I'd say that a touring provider probably has an overhead for each date of around $150 per day. Obviously if she has multiple dates on any given day, that overhead will drop. On the other hand, a local provider doing outcalls only probably has an overhead of $50 a day per client (which will drop if she see's more than one client per day). Yes. I know a lot of numbers to crunch. Basically, a touring provider will have a lower profit margin than a local provider who does outcalls only. Based on this, I would assume they set their pricing structure. However they do this, the first hour is going to produce the least amount of return for the provider. Any time over the first hour is probably pure profit. The question then becomes (and I don't mean this negatively); how greedy is the provider willing to be to the point of pricing herself out of the market? I would say this. The more expensive the first hour, the discount for over 60 minutes should be high. If the first hour is relatively low, then the discount for time over 60 minutes should also be low. Here's some numbers. If the first hour is $400. 90 minutes should probably be $450-$475 and two hours should be $500 to $550. On the other hand, if the first hour is $250, 90 minutes should probably be $350-$375 and 2 hours $425-$450. I'm just saying discounts should be based on a percentage of the initial hour. If the initial hourly rate is high, there should be a substantial discount. If the initial hourly rate is low, then the discount shouldn't be that much. Obviously other market factors come into play. These are just generic numbers.