Laser Practice Profits
This blog is geared more towards the individual that is new to the aesthetic laser market. It’s about being aware of some outside forces that can effect your aesthetic laser practice profits.
The information given here is by no means all that should be considered but just some things I’ve noticed.
In some cases when a fee based (no insurance companies involved) laser or other aesthetic equipment is sold new, the manufacturers will give a projection of potential profits that can be made. I realize it’s just a projection however it’s up to you the potential buyer to validate these projections.
– How was the information gathered for the income projection?
– Is local competition in your area taken into consideration?
– How many others in your area are offering the same procedure with the equipment your potentially going to buy or other equipment that will perform the same procedure?
Unless your lucky enough to be in the position of having a monopoly on the market, local competition will keep prices down!
The cost of the equipment (new versus preowend) will play a big role in how soon you will start to realize profits. If you where to compare systems of equal cost, one being purchased outright and the other leased over the course of 3-5 years. Not only will you be paying more for the leased equipment (due to the lease interest) the point which you start to realize profits will be that much further down the road. I understand not everyone has the ability buy equipment outright but just making a point.
Nationwide Laser Chains
Nationwide laser chains can have a big effect on a customers choice and your pricing strategy and profit margins. If this is all they do (no surgery) their experience level for performing certain procedures can be very good with low prices, constant aggressive national advertising and high volume can be real competition.
Do not over look how much Groupon can and will most likely effect your business. Their objective is to find the best service or product at the best (usually the cheapest price) value for their customers. This can lead to cut throat prices that will leave some in the position of not even being able to compete. Great for the customer if they get exactly what is being advertised.
Are Groupon customers loyal? Generally I believe just as soon as the last deal has been taken advantage of, they are off shopping for the next deal wherever it may be. If you decide to run an advertisement using this service, you may have customers lined up out the front door and down the street, but will they come back? Keeping Groupon customers can be challenging! Other concerns are did you truly make money at the deal offered?
Again like Groupon, do not underestimate how much this social media can and will most likely effect your aesthetic fee for service profits.
If you live in a state that requires the physician or RN to actually perform the treatment, your labor cost will be higher then the state that only requires a trained staff member. Check the laws in your state. Some may only require a physician on staff and not necessarily at the location performing the procedure. I find it much more often then not, when talking to physicians about their lasers, their role ended after purchasing the equipment.
Some aesthetic equipment if inexpensive enough and the procedure cost if inexpensive enough (microdermabrasion) can be used as an excellent marketing tool. Equipment that offers a relatively quick no down time procedure and requires the customer to visit your location frequently. Once a regular customer offer other upscale procedures.
This blog isn’t to say you can’t make a decent profit performing fee for service aesthetic procedures with lasers or other fee based equipment, but being realistic and understanding some of the outside forces that can effect your profit margin should not be overlooked.
Good luck and I hope this blog provided some valuable information!