How Do I Set The Prices In My Podiatry Clinic?Oct 28, 2019
I was reading the paper this past weekend (online of course) and noticed that they have opened a new members only spa in Dublin city centre recently.
What caught my eye with this story is that this spa is an invite only spa and if you need to ask the price then you can't afford it. Now I'm not the type to go to a spa but I have to admire this pricing model.
I bring this up as I saw a long debate on a podiatry group on facebook last week on how to charge for services in a clinic. This is a topic that seems to crop up again and again and is the very first thing I address with my clients in my coaching programme.
The truth is we medics are uncomfortable asking for money and avoid the whole topic if we can at all. Most clinic owners have little or now system for devising a pricing structure that works for their clinic.
Usually they simply look around the area to see what other clinics are charging and pick the average as their price.
PRICE IS WHAT YOU PAY, VALUE IS WHAT YOU EXPERIENCE.
The thing about price is its elastic. What I mean by this is that you will always find someone who will pay more than others, just look at the spa I mentioned or the amount of people who are using a apple laptop instead of the cheaper competitors.
Now these people will all tell you all the rational reasons why they decided to pay more but the truth is that when human make a buying decision including buying your care its primarily an emotional decision that they rationalise afterwards to justify it.
Almost every podiatry clinic are not charging enough. If they were they wouldn't be struggling to make enough profit to justify all the stress that comes with running that podiatry clinic.
The way I see it podiatry clinic owners have a responsibility to make a decent profit. Otherwise they can't invest back into their clinic and its stake holders. They can't pay for staff CPD, better equipment for the clinic and encourage podiatrists working with them to stick with the profession.
I strongly believe that the fact that most podiatrist in private practice are struggling is heavily influencing a large portion of the profession to drop out as they cannot see a path to personal success and freedom. They look at podiatry clinic owners and and put off buy the long hours, worry and stress with dealing with staff, wages, bills, marketing on top of clinical skills.
It doesn't have to be this way and it starts with getting the right pricing structure. Remember pricing is elastic and the right type of patients will pay more than you think. You just have to help them buy in emotionally and rationalise it after they have made their decision.
This is just one of the skills I help my coaching clients with as they start to earn more work less and enjoy their life more.