Saturday, September 19, 2009

The Recession Hits German Brothels

I heard this on the Deutsche Welle report this morning, and fortunately they have an English written report online.
Just like any other business in a difficult situation, the Pascha has come up with new tactics to boost its clientele. For example, it gives men over the age of 66 free entry to all parts of the building, which, apart from the brothel section, houses a nightclub, a leisure area and a hotel. Another tactic is increased targeted advertising, for which the Pascha uses a variety of media, including newspapers, movie theaters, posters, flyers and taxis in German cities.

And then there are other pricing actions.
Some German brothels have resorted to offering their customers flat rates – all the sex you want with all the women you want for a one-off payment. This strategy has created controversy around the country, with criticism from politicians and human rights advocates. Lobscheid sees this method as a poor solution to financial problems.
"I find these flat rates legally questionable," said Lobscheid. "I would have to more or less force a woman to perform her services, and I don't know how she would then charge the client. This doesn't fit into our system at all."

I infer that somehow the prostitutes are normally paid for piece-work, so to speak.
It turns out (as a simple Google news search shows) that this is not merely a German phenomenon, as is reported here and here.
The latter link reports that the business model depends heavily on concessions:
Along with falling clients, similar clubs have noticed that less people stop by to consume alcohol as well, which is where the largest portion of their profits lied.

(I assume it is the number of clients that is dropping, not the clients themsel es, especially if they are drinking less.)


Post a Comment

<< Home