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Med Spa CEO
Turn Tox Patients Into Premium Comprehensive Clients With This Business Model Shift
00:23:58
If your calendar is packed with Tox appointments but your revenue isn’t scaling, it’s time to rethink your model. In this episode, I share exactly how to transition from a high-volume, low-margin business to a scalable premium model using...
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Where do most clinics get stuck? You will sometimes make decisions that actually create the high volume, low margin type of practice and type of a business model. For example, you may have a TALKS membership and you made a decision at one point everybody on your team was going to really focus on selling everybody into that TALKS membership. Then it should come to no surprise that a year or two down the road you look at your numbers and you've got 30, 40, 50% of your revenue is tox and those folks aren't really doing much else than talks. Your retention is great, they're coming in, but your profit margins on those patients aren't where you want them to be. Getting busy is great. It feels great to be booked five to six weeks in advance, but it doesn't feel good to not be as profitable as you want to be. Welcome to the MedSpa CEO podcast where I teach you how to grow and scale your med, spa or aesthetic practice so that you can have the income and impact you know you were meant for without overwhelm, stress or feeling like you have to sacrifice your personal life and happiness to do so. It's totally possible for you and your business. Plus Simpler than you think. Keep listening to find out how hey beautiful friend. If you're a longtime listener of the podcast who's been dying to work with me but hasn't pulled the trigger yet, I have an incredible opportunity to work with me for a fraction of the cost. If your estheticians can't explain your signature plans or your new injectors panic every time they have to sell a high ticket consult, it's not their fault. It's the system or more specifically, your lack of one. That's exactly why I built Ask Heather AI, the first strategist level tool for esthetic and wellness CEOs who want to scale with precision and stop flying by the seat of their pants. Inside, you get three powerful tools, each designed to solve the exact gaps that keep your growth tied to you. Turn your basic menu into a branded high ticket signature offer suite your whole team can sell. Train every team member to lead premium consults with confidence, even if they've never sold a thing. Write magnetic messaging that attracts premium patients without sounding like every other clinic online. These are the same frameworks we've used to scale clinics to seven figures and beyond, and they used to cost five figures to access. Now you can have them in your back pocket. Try ask Heather AI for 30 days and see what happens when you stop guessing and start scaling with words that work. Head over to heathertraveen.com trial to learn more. Well, hello, my beautiful friend. Welcome back to another episode of the podcast. In this episode, we're gonna talk about turning specifically tox patients into premium comprehensive clients. I want you to insert whatever your equivalent to tox is. For some of you, it might be facials. For some of you, it might be skinny shots if you're doing weight loss. But for the lion's share of my medical aesthetic practice clients. I see. And this was inspired by a recent conversation. This entire conversation that I'm about to have is, on average, we see with our MSA clients that are aesthetic practices primarily. Usually, on average, their talks makes up about 30 to 40% of their revenue, which is really high. Recently, I was having a conversation on a menu design call. So inside of the MedSpa Advantage, every single month, we have two. One or two menu design calls. Specifically, these are calls that maybe one to three members who are newer to the program come on. And I personally review their menu with them. And on this particular menu call, I had two different clients come. Come on. Who were both very successful. One was an np and one was a surgeon who had stopped or had moved out of surgery about a year and a half ago and had just doubled down on medical aesthetics. She said about a year and a half ago, one was at about $130,000 a month, and the other was doing about $200,000 a month. Both were busy, right? One of them was like her, and her entire team was booked out for about five to six weeks pretty consistently. But what they found was. And what the numbers. Cause I look at their intakes that everybody who joins fills out, and what I saw when I was looking at their numbers is they both actually had about 50% of their business was actually talks. And so they really were inspired. And one of the main reasons they decided to work with us is they wanted to really improve that profitability. And they also wanted to shift to becoming a place that really doubles down on creating outstanding outcomes and results for their patients. So they were, you know, both pretty fully booked. They had great teams, and they had really high retention, especially with their tox patients. And yet they both were very, very aware that they were leaving a lot of money on the table. And so that's what I want to talk about today. Many of you who are busy, you might have some sort of hero service, like a tox might be a facial. It could be a skinny shot. It could be some other sort of ongoing membership that you really focused your entire business around. And now that You're a few years into it, you're realizing we are busy. We actually see a decent volume of people every month, but our profit margins aren't where we want them to be. And we're also not delivering on creating outstanding outcomes for everything that we have the ability to deliver those outstanding outcomes on. So the first thing that I would pose to you if you feel like you can relate to either of my clients, is that you get to decide what kind of business you are building. You get to decide if you want to be the high volume tox practice. As an example. And this is like valid, right? You might be a place where you want to actually create. You want to double down on really one main service offering and you want to be a high volume place. Now here's the deal. If you are going to be a high volume place, you have to be operationally excellent and you have to be very, very, very good at being operationally excellent in order to make the margins work for you. Now if that's the direction you want to go in, I am probably not the person you want to be listening to or the coach that you want to work with because what we do is we want to shift you from being like a high volume place. Now this doesn't mean you don't still see a high volume of patients every month. A lot of my clients still see a high volume of patients every month. But it's shifting you to be the go to expert for comprehensive solutions and drawing your line in the sand with everything that you do going back to really creating transformative results for the patients that you serve. So we're gonna dive into this today. So where do most clinics actually get stuck? I think where you get stuck is you will sometimes make decisions that you don't realize inadvertently actually create. So I'm going to give you an example so this will make sense. But you make decisions that actually create the high volume, low margin type of a practice and type of a business model. So for example, you may have a tux membership. And in that tux membership is basically everybody who joins for a small amount of money every single month gets like your best pricing on tox. And you made a decision at one point, you were gonna really you and everybody on your team was gonna really focus on selling everybody into that tox membership. This is as an example. Well then it should come to no surprise that a year or two down the road, you look at your numbers and you've got 30, 40, 50% of your revenue is tox. And those folks aren' doing much else than tox. Now, your retention is great. They're coming in religiously every three to four months, but your profit margins on those patients aren't where you want them to be. That was a decision that unintentionally created the high volume scenario, low margin scenario. Tox isn't the problem. The problem is when tox becomes your ceiling instead of your entry point. So for each of you that have this scenario, I want you to start to think about and whatever it might be, for many of you, it is tox. For some of you, it might be, oh, well, we have lots of folks that are just doing Diamond Glow. We have lots of folks that are just doing our basic facial. The key thing will be is you have to decide it doesn't happen by happenstance that those folks convert into comprehensive game plans. Right? Especially when you don't create an ecosystem that is going to be built around transformative results. So the first thing you have to decide is, do you want to be the tox place or the clinic that delivers real transformation? It really actually starts with the decision. Not the treatment menu, not the sales script. It's a decision about your identity as a business. Tox only or facial only. And most of you aren't like these clients. I even gave at the top. They were doing lots of other things besides for tox, but they had their tox folks coming in. They were retaining their tox folks, but there was no game plan to shift their tox patients from being tox patients into more transformative solutions. And the struggle that I hear many of my clients present with is like, well, it's too late, right? How are we supposed to. These folks, we haven't been selling to them. They're happy with just coming in every three to four months and just getting their talks. And that is a shift in how you approach every single patient in your practice. And so when I tell you all some of the things that you learn on this podcast, for example, like having annual consultations, having a signature menu of transformative outcomes, of coaching yourself and your team to actually walk folks through those annual consults and doubling down on them and letting every single patient in your practice know that, hey, every single year, we are going to do an annual consultation similarly to how a primary care doctor gives a well check or a physical, every single year, your patients will start to actually see, oh, this is the new standard operating procedure at XYZ Clinic, Right. It'll give you and your entire team an opportunity to have a conversation with those folks who've already, you already have a lot of trust stacked with those folks who are coming in for whatever it is consistently. They've already raised their hand to say, hey, I trust you. I trust your team to actually deliver on this. And we already know. We already know that folks that are interested in tox or Diamond Glow or whatever it might be, they are so primed for your transformative solutions. They're so primed for more comprehensive results. And many of them just don't know, because you and your team members haven't walked them through that conversation, that there is an opportunity for them to get more problems solved and more desired outcomes actually achieved. So there is a exercise that I've told you guys about before on the podcast, but it just always bears repeating that I will sometimes do live on different calls that I have with folks. And it's taking your patient base. So taking how many patients you saw in the last 12 months, okay? So taking that number. Now, I do mean unique patients. I don't mean counting how many visits. I mean how many humans did you and your team serve in the last 12 months? And then looking at whatever that number is. So let's say it's 100. And then on average, those folks spend $2,000, right? Which may not be far off. If 50% of your revenue every year is tox patients, it might not be far off that half of your patients are spending 2 to $3,000 with you a year. Now, for simple math purposes, I'm saying 100 patients, most of you, it's many, many, many, many more than 100 patients. Like, if they're spending an average of $2,000 a year, that's $200,000 in revenue, right? If we take just 30% of those folks and we get those $2,000 and they spend $10,000 in the same calendar year, which is not crazy. Once you start implementing our systems, then you will make an extra $300,000 in revenue. And a lot of that is extra profits as well, too, on the same exact amount of patient base. So why does this matter, right? It means higher per patient revenue. It means long term loyalty. When patients commit to full solutions, they stay. It means you won't have to find out that like, oh, I just found out that one of my tox patients went somewhere else. This is a real story that one of my clients shared with me a few months back that one of her consistent tox patients actually went somewhere else for Sculptra, and it was because she didn't even know that they also offered Sculptra because why would she know if you're not having these types of conversations to address other concerns and problems that she had or desired outcomes that she had. Right. And so my client was like, I can't believe it. Like, I've shared about it in email. I've put it on social media before, but this patient didn't know. That's why you always want to make sure that your consultation system with you and your team actually walks folks through that game plan, that blueprint, that roadmap every single year so that they have the full scope of understanding of what it is that you can actually provide for them, too. This also leads to more referrals. This is what we were talking about, even with my clients on the menu design call is they already, of course, have patients who also do some more advanced clinical protocols that they have walked them through and sold them on. It was just. Just such a smaller percentage of the overall patient base simply because they had not really implemented a system that made it so every single tox person or every single active patient that they saw every single year was walked through the same scenario. It makes for profit efficiency, so that you can scale smartly, not just get busier and busier. Getting busy is great, right? Like being busy and knowing you know it. It's like, it feels great to be booked five to six weeks in advance, but it doesn't feel good to not be as profitable as you want to be. And so the best news that I have for you all is that it's not that complicated, right? If you've been a longtime listener, you know the system. I actually share the system with you all, what I would recommend you all do. It's not that complicated, but simple doesn't always mean easy. And so what I would offer to you is that the solution is simple, but it means really rolling up your sleeves and deciding that you are gonna go all in on becoming a practice that doubles down on transformation. So you hear me talk about signature packages and creating signature programs and all of that jazz, and so it's great. And then people will ask me, oftentimes they'll say, like, okay, Heather, what do I do now that I've created a signature package, or I've created, we call them CSPs and BMOs. The next step is actually ensuring that those signature packages, that your transformative solution, are actually presented in the 1, 2, 3, part of your marketing ecosystem. So when I say marketing ecosystem, and I use different terms for this sometimes, but is essentially when you look at your customer Journey. And I'm really simple when I look at the customer journey. In fact, I was talking with a private client, I was walking through a new private client just, you know, within the last week and we were auditing their before, the during and the after of their customer journey. And that's what I would offer that you can do as well is looking at, okay, number one is the front end part of your marketing. Now for many of you, you will have front end offers that are not signature packages, that are not comprehensive solutions, right? That is because you need your front end offers. So these are oftentimes the offers that you are running ads to or that are really built for new patients. Those are probably going to be simple talks offers. They might be a simple facial offer or something like that. And so that is part of your front end marketing, right? But the other part of your front end marketing is your website is your organic social media on Instagram, TikTok, wherever else you might be doing that as well too. And really making sure that you might have paid ads going to sort of what we would call like tripwire offers. And what I mean by that, these are like lower ticket offers that are of potentially a generic thing so that you can get folks in the door and they actually understand, they don't need a lot of explanation. But once you have those going out, right, you want your organic, your email and then the conversation and your consult system and everything about your in person experience to actually be built around your signature solutions, your unique methods. And so looking at and doing an audit of your front end social media, looking at your email, right? So that's the before, this is the during, right, is your consultation. How can we shift and make sure that every active tox patient, every active facial, every active skinny shot, every active whatever the membership is, is getting a comprehensive game plan every single year, no matter which team member that they see. So that's the step one and then step two. So before, during, right? Face to face and then step three is the after. Okay, so where else in the ecosystem system on the follow ups? Part of step three is having the annual game plan, right? So that it's not just the new patient consultation. Are they giving that big roadmap? It's every single year in perpetuity. Are we going to give them that big roadmap as well? Two, how can we shift your events? Talk about it. You can go back to another episode on the podcast. It's probably called high impact events or something, something like that. Now, once a year, if you want to have the big grand opening or the big annual holiday event where everybody gets invited and you're running a bunch of maybe discounts on everything that's fine, maybe once a year. High impact events are different than that. It's where we take a certain solution, a certain problem that your high value patient is, is looking to solve and you create an event around it. This is still part of step three of the follow up, right? Cause so now these are the warm people that are either following you on social media, they might be on your email list, they might be your current patient base as well too. And you have these high impact events that might be on a specific topic, it might be on getting your body in shape for summer, might be an event all about acne, it might be an event about midlife full face rejuvenation, right? So you're gonna have less people potentially that come to that event, but they are gonna be highly warm people and they're gonna capture all the folks who maybe did get presented by one of your team members, a comprehensive solution and needed a longer decision making cycle and then they come to that event that reinforces what they were told in the context consultation as well too. So for those of you who have a lot, which is many of you have just even if it's tox, have 30 to 50% of your revenue based on that line item alone, you have so much opportunity to dramatically when you hear about my clients who are doing like 70k a month and we get them to like 200, 250k a month, 300k a month and beyond, and it sounds almost like a fake number that I'm telling you it's because of these numbers and doubling down on these systems, it will totally work for you. And when you make the decision that you are going to be a place that draws their line in the sand and you're going to look at your customer journey and decide we are going all in on the transformative results that we want to create create for the humans that we serve. The sky is the limit. And that is what I want for each and every one of you. That is what I have for you this week, my friend. I will see you next week. Hey, if you're enjoying this podcast and you're a boutique results driven med spa owner who's looking to drive more sales profitably each month without hustling yourself into the ground to do so, then you should consider applying to join us inside of the MedSpa Advantage. It's the only program designed to help you grow your revenue and profits while gaining back more time so that you don't feel scattered and drained while running and growing your business each month. To learn more about whether or not you're a fit for joining us, you can head over to heatherterveen.com apply to apply to get on a call with us to learn more. That's heatherterveen.com apply to learn more.