Many medical aesthetics clinics face financial challenges and don’t have an adequate grasp on their numbers. It’s understandable—it can be difficult to determine the return on investment (ROI) of individual expenses, especially the ones that aren’t directly connected to profits. Getting an idea of the areas in which aesthetics clinics like yours are bleeding money can help to better determine what’s worth your investment and where it may be more appropriate to cut corners or expenses altogether. Get a better understanding of your financials and identify cost-saving initiatives for your clinic by considering the following areas where medical aesthetics clinics and MediSpas often waste the most money.
There is a place and time for printed advertising but oftentimes, they can be a waste of money and resources. When introducing a new device or treatment to your clinic, for example, posters in your waiting room and a few brochures for those who prefer print may be beneficial in catching some attention from current patients. However, in many cases, digital marketing materials can offer a greater value.
Informative and downloadable marketing packages can be hosted on your website to which you can link via social media posts or email advertisements, making it possible to use one versatile piece on multiple platforms. As well, the use of these digital communications can be better targeted to interested parties while saving on material costs for paper and printing, thereby lowering marketing costs and boosting your ROI. Digital files also take up much less storage space, making this a money-saver in a variety of ways. Finally, digital communications offer a longer lifespan as details can easily be updated without having to toss anything out. If print assets are still a necessary requirement for your patient base—perhaps if a large chunk of your patient base is much older—then look for device companies that offer patient brochures, posters, and other marketing collateral for purchase. This would enable you to still provide print advertising for your patients without incurring the additional costs of designing or printing.
Everyday processes can be significant time-wasters. While calling patients to remind them of upcoming appointments can help prevent last-minute cancellations, this process can also take up a lot of your staff’s time, and their time costs you a decent amount of money. Instead, consider introducing new applications that automatically send reminders via email or text message. Offering online bookings can also help to better manage appointments for patients who don’t require questions to be answered prior to their consultation or treatment sessions. To determine the inefficiencies costing your clinic the most in time and money, consider sitting down with each of your staff and asking them about their most time-consuming tasks or areas where they see redundancies that could be resolved simply by introducing new software, applications, or processes.
It can be easy to fall into simple habits, like purchasing table paper, cleaning supplies, syringes, and more from the same old supplier. While establishing a long-running supplier can sometimes lock your clinic in at lower prices for these everyday consumables, it could also mean that you’re overpaying for the same old supplies. Becoming comfortable in your purchasing habits could leave you missing out on deals and new competitive pricing. Instead of falling into a routine, consider taking a close look at supply costs on an annual basis. Look at separate items to see if there is anything that seems to be a little too costly or if you could perhaps buy in a larger quantity to save on your per-unit costs. If competitors reach out to your clinic with attractive pricing offers, take the time to listen to their proposals, ask questions, and consider making the switch. Cutting these costs altogether is often out of the question; your clinic simply can’t function without these supplies after all. However, you can save on their costs, so don’t let this money-waster slip by without review.
Rushing the hiring process or neglecting to keep staff happy not only leads to wasted money on staffing costs when they inevitably quit, but it can also be a drag on your clinic’s patient satisfaction and retention ratings. While extending the hiring period for new staff may be a little more costly and potentially risk having a position remain open for a period, it’s not worth the risk hiring a candidate who isn’t the perfect fit for both the position and your staff. Investing in career development and continuing education for employees, and scheduling regular meetings with each staff member to review their roles, concerns, and goals can keep everyone feeling challenged and a part of the team, leading to improved employee and patient satisfaction.
It might be tempting to try every marketing strategy out of fear you may miss gathering the attention of some prospective patients. However, the broader your marketing strategy, the more costly and less effective it becomes. Efforts between print and digital platforms are spread too thinly and marketing dollars don’t match up to your ROI. Instead of doing it all, focus in on two or three marketing strategies that best target your ideal prospective patient and show adequate returns based on your marketing goals. In other words, aim for a marketing make-under to improve patient acquisition and get the most out of your marketing dollars.
Office space accounts for about eight to 15% of revenue for most clinics. Based on this alone, leaving treatment rooms unused or having a large waiting room space that is never filled could be costing your clinic a lot of money. Get creative with the square footage you’re paying for and ensure you’re getting the most out of your space. If your clinic is efficient enough or has an adequate number of treatment rooms that your waiting room is rarely in use, consider renovating to convert a portion of it into a new, more useful space based on your clinic’s needs. Alternatively, if you have an extra treatment room that’s rarely used, consider converting it into a dedicated photography space for better before-and-after pictures you can use to strengthen your marketing efforts. You may also consider renting often unused space to an aesthetician or dermatologist with dedicated hours to not only bring in more patients, but also convert what used to be a money-wasting cost into a money-making strategy.
Skipping out on your due diligence when signing contracts for services, equipment, rental space, and more can lead to a hefty amount of lost money. Before signing on the dotted line, review all the details of your contract and ensure it matches what you agreed upon in your negotiations. If anything is unclear, ask for clarification and confirm that you understand every last clause before adding your signature. Note that sales representatives and vendors can leave or change over time, so any verbal agreements won’t stand. Get everything in writing, have it signed, and push for price protection should the status quo change.
Keeping track of all your clinic’s finances can seem daunting, but it’s necessary to ensure your clinic is running efficiently, treatments are properly priced, and promotions aren’t undercutting your bottom line. Don’t make the excuse that you don’t have enough time to consider your financials regularly. Instead, work towards spotting areas in which you can swap out fluctuating costs with consistent monthly charges. By focusing in on predictable expenses, identifying or estimating your clinic’s average monthly expenses becomes much easier, allowing you to better calculate your ROIs and reallocate money from areas that aren’t paying off to business strategies that could use a bigger investment for a better return.
To begin, consider a Venus Concept partnership. With each device purchase, your clinic gains access to ongoing clinical education for your staff, professionally designed print and digital marketing assets, practice consulting and marketing support, industry-leading technology, comprehensive warranty coverage, and easy device upgrades all through the industry’s first and only true subscription acquisition model. To learn more about the cost-saving benefits of a Venus Concept partnership, contact an expert today!