Newsletter

By Francis X. Acunzo

In recent years there has been a proliferation of Medical Spas opening their doors nationwide.  Everyone from entrepreneurs to physicians are seeking to take advantage of this new segment of the spa and retail healthcare industries.  The advantage is 100% of the revenues is self-pay the negative is that with such a new business model there are very few comparable locations with enough history to benchmark.

I call the pit-falls of the medical spa “profit busters”.  There is a short list of Profit Busters that keep a medical spa from bottom line success, as long as it is in the right location with strong visibility and accessibility.  Let’s take a look at each Profit Buster along with an action plan for each to place your business back on the path of profitability.

Buster No. 1: Huge Marketing Budget
So often the Medical Spa owner throws money at the marketing machine to increase or maintain sales volume.  Budgets that exceed 10% of gross revenue, once stabilized, quickly erode profits  (unfortunately we have seen, all too often, marketing budgets upwards of 40%).

Buster No. 2: Incorrect Marketing Mix
It is essential to align your marketing mix with your audience in order to cost effectively reach your target market.  Think in terms of quality versus quantity.  The best marketing is your reputation and quality of service.  Market your Medical Spa first and foremost with “R&R”, not rest and relaxation but Repeat and Referral.  Leverage the power of the internet with a robust website combined with e-newsletters and e-mail marketing.  It is critical to capture every e-mail address (with the appropriate opt-in approval) for all leads and clients.  Be cautious with broadcast such as radio and TV. Be sure to incorporate public relations to balance and get the most from your budget.

Buster No. 3: Lack of a Service Culture
A Medical Spa provides medical services within a spa environment.  Traditionally, the medical world did not focus on customer service but more on care and safety.  In the medical spa world care and safety is number one but running alongside care and safety is customer service.  The moment you add the word “spa” to your name you build client expectations that need to be met or you will fail to build your repeat and referral business (the least expensive to market and the most profitable).  Your medical spa must have a culture of customer service.  It is essential that it starts at the top with the Medical Director.  Remember the small memorable moments create the overall experience thus the attention to the details must be in place.  Ultimately, to drive success, you must build a service culture with a sales focus.

Buster No. 4: Staffing Misalignment
Too often ownership and/or management wants to schedule the team from 9 – 5 during the week.  Though this may be more typical in a medical practice (people will take time off from work for the must have medical service) the services being offered in a medical spa are purchased when the client has free time.  This means understanding your market and staffing during the times that they want to buy.  If you have a stay-at-home mom market then the Monday – Friday 9 – 5 will work, if you have a dual income market then nights and weekends will be most popular.  It is also important to remember that staffing creates “service inventory” if you don’t have the “inventory” staffed then you won’t be able to sell your service.