With 7.7% unemployment the UK is going through tough economic times.  Competition for business is getting downright nasty, with price-cutting becoming a key component of business survival.  And no business is excluded from the fray.  Just ask the prostitutes. A recent article in The Economist points out that spending on luxury goods has decreased by 4% since 2007 — and the purveyors of paid sex, a luxury service by all definitions, have felt the financial impact of this decrease.

In the current recessed economy British prostitutes have had to survive with fewer customers in the market and competition from foreign nationals.

But there are some bright spots for those willing to innovate in the world’s oldest profession.  To retain what market share they can, the innovators have diversified to expand their appeal.  For example, they have joined niche markets such as dominatrices, diversified their service portfolio to include phone and web-cam sex, and changed their target audience to include those with less-deep pockets. Apparently, as much as most stores would love to be Saks Fifth Avenue, the real money is made at The Dollar Store.

Perhaps newer suffering industries could take a lesson from the world’s oldest profession.  After all, thousands of years of prosperity are at least an indication that a service provider is doing something right.  Success in business starts with a product that is high in demand,  but market share can be retained or increased by implementing sound business principles, including expanding the service offering, expanding the target market, and keeping costs in line.

Citations:

“Sex Doesn’t Sell.” Http://www.economist.com/news/britain/21578434-old-industry-deep-recession-sex-doesnt-sell. N.p., 25 May 2013. Web. 6 Oct. 2013.”United Kingdom Unemployment Rate.” TRADING ECONOMICS. N.p., July 2013. Web. 06 Oct. 2013.

Image Citation:

“Street Credibility.” The Guardian. N.p., n.d. Web. 07 Oct. 2013.