What's with the Medical Spa price wars? Cheap is no way to build a medical practice.

Medical Spa physicians always seem to want to offer the lowest price. Why?

I speak with a lot of physicians. One of the first few questions that I'm asked has to do with pricing. (read the MedSpa Business or Med Spa Advertising Q&A here.) Physician and medical spa owners seem to be highly agitated by not offering the lowest price in town. This shows directly a lack of competence and belief in their own abilities. If you can't imagine why anyone would come to you except that you have the lowest prices, you have big trouble.

Anyone who will choose you based on price, will leave you just as quickly. That's OK if you happen to be able to deliver services at substantialy reduced costs compaired to your competiton (think Wal-Mart) but it's certain death if your not the clear low-price leader (think K-Mart). Does your Botox, Restylane, Thermage tips, or staff cost significantly less that your competition? No.

The only sustainable business you can build is a reputation on something other than price. Make a decison about where you want to be and start moving in that direction. No woman ever recomended Surface to her best friend with 'they're the cheapest'.

From Seth Godins Blog:

Cheaper is the last refuge of the person who's not a very good marketer. Cheaper is easy and cheaper is fast and cheaper is linear and cheaper is easy to do properly, at least at first. But cheaper doesn't spread the word (unless you are much cheaper, but to be much cheaper, you need to be organized from the ground up, like Walmart or JetBlue, to be cheaper). They are, you're not.

Cheaper is a short term hit, not a long term advantage. Cheaper doesn't create loyalty, because the other guy can always figure out how to be cheaper still, at least in the short run.

Comments

[Question about accediting medspas?]

I am not sure where to post this question but is there an accediting body for medspas?

I had understood that medspas were akin to physician offices. That each state had their own regulatations through medical and nursing boards as to who could own a medspa as well who could perform procedures. If there is anyone out there who could answer this - thank you!

I saw this on the web and am confused.

Clinic/Medical Spa Accreditation
Enroll your facility in the A4M Anti-Aging Clinic / Medical Spa Accreditation ProgramAccreditation of anti-aging medical clinics and medical spas serves two primary, fundamental purposes: to assure the quality of the institution and its clinical program, and to assist in the ongoing improvement of the institution or program.

The A4M Anti-Aging Clinic / Medical Spa Accreditation Program features Standards of Excellence that:

Emphasize your facilities high level of service and safety
Showcase a broad range of advanced diagnostics and therapeutics available at your clinic or medi-spa
Encourage patient education and empowerment
Demonstrate your facility’s compliance with the highest governing operational standards of Professional excellence
Enjoy the enhanced visibilty and patient volume heir to A4M INET referals.

[Florida PA]

For a fee A4M will "accredit" your med spa. It is worthless because A4M is not recognized by any state or federal accrediting body.

They have their own "board certification" too!