Strategies to Boost Profitability Today
Strategies to Boost Aesthetics Practice Profitability Today - No Investment Required
As an aesthetics practice owner, your primary focus is on growth. After all, your practice’s success hinges on its ability to serve clients effectively. Being visible, staying top-of-mind, and attracting clients are vital aspects of building a thriving aesthetics practice.
Marketing, however, is a long-term process that requires consistent effort. Sometimes, it can feel like coaxing reluctant cows to come home from the pasture. Perhaps they believe the grass is greener elsewhere, or they’re waiting for something more enticing. Yet, with persistence and a showcase of your work, excellent testimonials, and outstanding services and products, you can eventually draw them in.
While working on your long-term marketing strategy, there are immediate actions you can take to boost profitability. These steps are simple but require strict implementation, often challenging for practice owners and managers. However, they are crucial for achieving operational excellence.
Managing Cost of Goods Sold (COGS): COGS represents expenses directly related to producing a service or product. For aesthetics practices, COGS includes items like retail products, neurotoxins, fillers, and more. Detailed understanding of COGS involves knowing the service, its components, the quantities required, and their individual costs.
For instance, consider a neurotoxin injection service to the forehead:
$7 per unit of neurotoxin x 40 units
$0.25 per syringe with needle x 10 syringes
$0.05 per alcohol prep pad x 10 pads
$1.75 per under pad chuck x 2
COGS do not include overhead or operating costs like rent and utilities, which are separate. Managing COGS diligently can significantly impact your bottom line. A few carelessly used items here and there add up over time. Especially if 5 or 10 providers are behaving carelessly.
Do you know what materials are required to perform a service? If not, how do you know you’re not losing profit opportunities on each service? Accurate tracking and usage of materials are crucial to prevent unnecessary cost increases and lost profits.
Efficient Labor Management
Labor costs encompass the people essential for running your practice, some generating revenue while others are support staff. Efficiently managing labor is vital for cost control and service quality.
For example, consider a service provider whose total cost is $40 per hour. A 15-minute gap in their schedule, occurring twice daily, results in $20 of non-revenue generating labor. Over a year, this can add up significantly.
To ensure efficient use of labor:
Eliminate gaps in schedules by suggesting appointment times to clients.
Review schedules daily, filling gaps where needed by calling clients scheduled a week out to see if they want to come in a week early or call clients already on the schedule that day and ask if they’d like to bring a friend on the house.
Aim for an efficient schedule that maximizes revenue-generating hours.
While these operational improvements may not have the glamour of marketing, they can significantly impact your bottom line without additional spending. When executed effectively, they can even enhance the overall value of your practice, potentially making it an appealing investment opportunity down the line.
💌 Are you ready to take on an investment partner to help you grow your medical aesthetics practice? If so, we are here to partner with you every step of the way. Fill out the contact form or send us an email at info@baraesthetics.com and we will schedule a call to discuss the possibilities.
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