Junior Walker

I recently saw a flier for a dog walker that read:

Dog walker. Your pooches are in good hands

$7/ HR      $15/ 2 HR     $25/ 3 HR

For more information please call [redacted]

I would like more information, actually.

I'll ignore that this guy's price is below the California minimum wage. If he doesn't like it, he can take it up with himself.

What intrigues me is his payment plan. His first hour costs seven bucks.  His second, effectively, costs eight bucks.  His third, ten bucks. (Congrats--that last hour is the present-day minimum wage, though not for long.)

Perhaps he figures "for the first hour I won't be tired, but if they want me to keep walking those dogs, it's gonna be brutal, so I'll charge more as I go along."

Except it's a lot more common to charge most for the first hour of anything.  For one thing, some of your costs, like travel, are there no matter how long you work.

Second, if you want consumers to purchase more of your services than they might otherwise, it's a good idea to offer discounts--the more they buy, the greater the discount.

If I needed a dog walker, I'd hire this guy for one hour.  And then when he comes back, I'd say "you know what?  I think I'm going to hire you again for another hour.  Here's another seven bucks, see you soon." And so on.