Having said that(last post), I think Nicke's business model is the most successful, when it works, and he is smart for not milking it for a few extra BF Baht income. It seems, however, that not every bar can compete on that level.
At one time, IIRC, 95% of the BGs worked on LD commissions, share of BF, and tips, only. Each bar might have had one or two who got a small salary. But I know now that in Patts(and probably some Patong bars?), all the bars are paying a salary to the BGs. For a new girl in a beer bar there, it was a standard salary of 3000 to 3500 Baht per month, at most bars. The girl I was paying a 500 Baht BF for, was getting 10,000 per month to work at the beer bar. To get their full salary, however, they have to sell a certain number of drinks, and get BFed a certain number of times per month. In her case, it was about 90 drinks per months, but I don't know how many BFs.
So, I think the transition from commissions/tips only income to monthly salary, to draw enough girls to fill the bars, has a lot to do with the increase in BFs, unless I miss my guess. By enticing a girl to work there with the prospect of a 10K wage, they hope to get the higher quality girls, thereby attracting more punters, who drink more drinks, and are willing to pay the higher BFs. At Xmas/NYrs this business model works great, and even if the girls are not top-notch, because the punter/girl ratio hits about 1 to 1 on New Yrs Eve, so every guy who wants to hook up has got to pay as necessary, or get stuck alone.
And, if the girls are really top-notch, that biz model will probably work well enough all year round. But I don't think it is going to work most of the time, if the girls are only average. Because why go to a beer bar and pay a BF that high? You may as well then just go to a go-go, where the girls make more of an effort to entice you, and you can see what you are getting, no hidden flaws. Or go to a soapy, where you can take your choice and get treated like a king for an hour. Then you can go hook up with your friends, feeling relaxed already, enjoy the company, the drinks, flirt with the girls, but not necessarily feel the need to hook up for the night.
When prices get too high, both BFs and expected tips, then, for me, the girls become nothing other than h00kers, so then it is just a matter of what is the most bang for your buck. For me, what made LOS so dfferent, is the illusion of romance, of having a real relationship with a girl, even if it is no more than a holiday romance. That is a lot different than strictly P4P, which is only about money. For the girl and the guy, I think it is better to spend some time together, really get to know each other, really have a friendship, and, in those rare cases, even something that can blossom into something lasting.
For me, that is what the LOS experience is all about, that and the friendships made, and good times shared with friends, along the way, as each of us shares his experiences with others, each in his own way.
Money is always a factor in LOS, it seems. But, in the traditional way, as I see it, the beauty of LOS has been that the element of money is sort of pushed to the back, under the counter, or under the surface. It is there, but, ideally, if the game is played well, we don't talk about it, except if necessary.
The 1,000 Baht BF just throws the monetary aspect right in your faces, smashes all the illusions we enjoy, and turns it into just another P4P scene, much like anywhere else in the world.