Sometimes the best thing to do when facing competition is to raise your prices. I found an interesting take on the Spitzer saga in the Washington Post. Columnist Harold Meyerson writes about high end prostitutes as positional goods.

Positional goods are those commodities that are more valuable than their run-of-the-mill counterparts because a special status attaches to them, since only a select few can have them. Since the Web sites on which prostitutes advertise indicate that the average hourly rate is around $300, the Emperors Club maximum rate, which is roughly 18 times higher, could be justified by the particular appeals and skills of its hookers. I haven’t conducted empirical research on this one, but let me just say: I doubt it.

This of course begs the question “How can my business demand 18 times market rate for its products?” Would creating an artificial scarcity for your product confer status on those that are able to purchase it? Any other suggestions?

Hat tip Portland’s finest advertising blog