The impact of the economic slowdown on elective healthcare services such as cosmetic procedures and LASIK was almost immediate. Initially the impact was regionalized to those areas with the highest decrease in home value. But as the year progressed and the economy worsened, the majority of elective healthcare practices experienced a decrease in new patients and patient conversions.
To quantify the effect of the slowing economy on cosmetic practices, CareCredit asked Hiner & Partners, Inc. to survey 10,000 CareCredit practices to identify tactics they were successfully using to increase or maintain sales and profitability. Participants were contacted via mail, email and fax to participate in the web-based survey. This report summarizes the key findings of that market research initiative to help cosmetic practices compare and analyze their current status with peers across the country and to share best practices.
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The Economys Impact on Cosmetic Practices & Tactics to Maintain Profitability
- 61% of practices reported an average decline of 32% in monthly sales as compared with 2007
- Only 13% of practices reported an increase in sales
- 26% reported same level sales as 2007 The decrease is impacting both surgical and non-surgical practices
- 64% of surgical practices reported an average 31% decline in monthly sales
- 56% of non-surgical practices reported a 34% average decline.
The economy is affecting all areas of business including inquiries, consultations, commitments, completed procedures and repeat customers.