3 Ways to Maximize your ROI in the Aesthetic Industry
When you think of what the general perception of the aesthetic industry is, what words come to your mind? Probably things like vane, strictly cosmetic, overly expensive, and optional. Now, if you’re reading this then you’re probably in the aesthetic industry which means you don’t think of these things (hopefully), but this is generally how the public views aesthetics.
Patients often come in not only presenting you with a problem, but oftentimes a solution. They look at their fine lines and wrinkles and immediately think, “botox.” The truth is, patients don’t know what they want until we tell them what they need.
Use the good, better, best model
Let’s say we have a patient like I just mentioned who comes into your practice wanting their fine lines and wrinkles fixed. Your first course of action should be to give them a “good” option which in this case would be botox. A better solution would be to kill a few birds with two stones by prescribing a toxin and a chemical peel. At that point you’re treating tone, texture, pore size, collagen and elastin simulation, as well as pigmentation – but there’s a “best” option. The “best” option would be toxins for the fine lines and wrinkles, a chemical peel for the skin tone and finishing up with a filler or microneedling treatment.
Why does this model work? Great question! It works because you’re positioning “good” as the lowest point of entry and nobody wants that. A lot of people can’t afford the best, but they can afford the better. So by simply positioning your treatment plan correctly, your patient is going to increase their return on investment (ROI) because they’re now going for something they never would have gone for before which in turn increases your ROI.
If you’re selling a la carte services at your practice, you’re shooting yourself in the foot and I’ll tell you why. We (not sure where the woman in the video works or who she is, but I’d add that in here somewhere) sent a survey out to our clients who received toxins asking “how many of them came back to us 100% satisfied?” You’ll never guess, but the results showed only 30%. Only 30% of clients came back 100% satisfied. Now the next obvious question is why?
Well, we found two reasons. The first is that patients didn’t have a full, robust understanding of the treatment they were receiving, or they had a misunderstanding of the treatment. The second and most important reason was that there was no implementation of combination therapy. What does this mean? It means that when they initially came in asking to remove their fine lines and wrinkles, we did that by offering botox as the main option, but they came back because they still felt like they looked older than they wanted. The issue wasn’t that our treatment didn’t work – we got rid of the fine lines and wrinkles, the issue was that they also needed a chemical peel (a combo therapy) to treat the sun damage that was making them look older.
A good provider will never cater to a patient’s budget because a good provider tells a patient what they need to get the best result. Not only are you meeting the patients needs better, but you’re maximizing your return on investment by offering combination therapy. Adding a chemical peel to a basic toxin treatment takes essentially no extra time and you’re often going to make $350 extra of revenue. That’s a great ROI.
Know your worth
In 2021 the global aesthetic industry was $89 billion. In 2030 it’s projected to be 300 billion. People aren’t just going to stop caring about their looks, therefore the opportunity is endless. People don’t like asking for money, but when you don’t you devalue your service. You’re not a walmart, you don’t price match and you shouldn’t discount your services.
The worst thing you could do is put your prices on your website or give it over the phone. Why? Because you’re telling your patient, “This is my price, but feel free to shop around.” We’ve got to change the talk track of aesthetics. Everyone thinks that because aesthetics is cash, that it’s optional or that it’s vanity. Aesthetics is treating your skin and your skin is an organ which means providers have to stop positioning their treatment protocol as an option and start positioning it as a prescription.
The question you need to be asking yourself is what is your average revenue per hour/per room. A lot of practices in this industry don’t know the answer to that question, but it’s crucial. The average per hour/per room rate is $750. The reality is, you will never get to that number by offering solo treatments. If you position your service well by using the good, better and best model, implementing combination therapy, and you know your worth – you will quickly maximize your ROI in the aesthetics industry.
Schedule a consultation with us today to learn more about how to maximize your ROI for your Aesthetic Practice! Watch our interview with Janis Snaid, Director of National Accounts and Practice Development at VI Peel, here!