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Thursday
May032007

Is it worth buying a Dermacare franchise? JK wants to know.

Medical spa franchises are still for sell

 
questions_graphic.jpgThe following was posted by JK on another Dermacare thread. Since it deals with a very specific question, I've reposted it here so that the Dermacare franchisees can answer it.

"Firstly I would like to say, no I am not a part of Dermacare. And my inquiries are serious, I do appreciate your feedback and am asking the question because I really want to research a few things before agreeing to go to DC versus an independant clinic. Those that responded I thank you.

To MD: Your comment: I got a 800K investment which still costs me 15-20K per month to operate (10 months in) and I work anywhere from 40-60 hours a week for zero dollars.

-I know the investment is high I did my research and the investment is around 800k, so yes I do know that. So how are you working so hard and not getting income, are people only requesting low yield services? I did the numbers and something is not adding up. If you are busy where is the rev going to? I have spoken to other DC clinics and they are reporting a consistent rev stream, why is that? I have seen their numbers.

So it seems the customer service is bad at DC, thank you for letting me know I will research that further.

Also I am learning that there are 2 clinics in trouble in AZ, can anyone give me a hint as to who they are? I would love to research this further.

Again thank you for your feedback, and I am sorry you had a bad experience" - JK

But DermaDoc wants to sell me his franchise. Now I'm really in a quandry.

OK Dermacare franchiees. JK wants to know if it's just sour grapes he's reading.

Reader Comments (6)

JK

Many physicians who are considering investing in a DC franchise have requested financial and other information on this site to help them in in their decision making.

You stated above that you have researched Dermacare, received projected financial data and received current financial information from Dermacare franchise owners. It would be very nice of you to share that information here to help other doctors who are also considering a franchise purchase. Please give detailed financial information, including projected income and expenses given to you by corporate, and actual income and expense figures given to you by franchise owners. This information would be of tremendous value to current and prospective franchise owners. Please help
05.4 | Unregistered CommenterPro Docs
JK,

I am busy, but not consistently busy. Nobody should assume since they open a franchise they will be busy-bad assumption. I am trying to become consistent. The only way to do that is to increase my database of potential customers, so we advertise and run monthly promotions. In the end it is still a numbers game. Until we reach a client base ( I feel everyone's may be different) that will consistently keep us busy as well as tap into all the income streams (high and low yeild) we will not generate enough revenue to be profitable and produce income. I feel I need a loyal client base of 1600 minimum, we started at zero. If you have potential clients or this is in addition to your practice and you already have an extensive database then you may start off faster than us. The revenue generated goes towards all the bills the big ones -payroll, rent, and advertising. Don't forget you have COGS (cost of goods sold) with this business and when you need to discount to increase traffic it raises this number very quick thus diluting your profitability. Until I get the database larger we will continue to spend more money getting and retaining those clients than I bring in. In the real world it does add up to continued losses.
05.4 | Unregistered CommenterMD
thank you MD,
So your DC clinic is not located in conjunction with any additional clinic of yours?
You say in the real world this model ends up as being continued losses, how does this model do you think differ from other business models in the retail enviornment. (like perhaps like a salon that offers laser procedures?) Lasers are expensive, and unfortunately with this model you need to put in alot of costs in advertising to get the new customers and continued customers like you stated. And I guess what I am trying to ask is how is DC, aside from the lack of support contributing to your losses. Do you think the amount they are requesting in marketing is unreasonable? Are they asking you to upgrade your lasers too frequently?

I agree with you and some other posts that DC should be more upfront with the full initial costs so you know what you are getting into. And they are claimiing to be experts, and they don;t seem to be supporting people.

For Pro Docs, sorry if my statement was misleading, but the numbers I have are more them stating what their monthly revenues 1-2 of the other franchises. Most of the things put together are just on my own, however MD is stating that they may not be a portrayal of the real world. So am researching that further.
thank you
respectfully
jk
05.5 | Unregistered CommenterJk
Probably what sticks in a franchisees craw is writing monthly royalty checks for no visible support. I know I'd curse every number I wrote on a check to some bum collecting $ off of my sweat equity. Forget it.
05.5 | Unregistered CommenterMichMD

The Dermacare in Ohio has been advertising to hire a physician at the Columbus Clinic. I have been looking for info about the operation and found this site. All I have found is that they have a constant turnover in staff. I can't even find out who owns the clinic. Have any info, thoughts, advice, insight? I am not very encouraged.

06.14 | Unregistered CommenterLooking

I agree with you and some other posts that DC should be more upfront with the full initial costs so you know what you are getting into. And they are claimiing to be experts, and they don;t seem to be supporting people.

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