Med Spa CEO Podcast Summary Episode: "Why Being Affordable is Killing Your Med Spa (and What to Do Instead)"
Host: Heather Terveen
Release Date: January 29, 2025

Introduction to the Episode

In this episode of the Med Spa CEO Podcast, hosted by Heather Terveen, the focus is on the detrimental effects of positioning your med spa as the "affordable" option in the market. Heather emphasizes the importance of transitioning to a premium positioning to enhance profitability, client trust, and business sustainability without sacrificing personal well-being.

The Pitfalls of Being the Affordable Option

Heather begins by addressing a common trap many med spa owners fall into: striving to be the most affordable and accessible option for everyone. She asserts that this approach can "kill your business" by limiting sales, hindering growth, and preventing the establishment of your practice as a true authority in the field.

"Being affordable is absolutely killing your business."
— Heather Terveen [03:15]

She highlights that while the intention to care and include everyone is noble, it often backfires, leading to misguided inclusivity where the business attempts to serve too broad a clientele, diluting expertise and compromising service quality.

Impact on Operations and Profitability

Heather delves into the operational challenges of maintaining affordability. She explains that running a business with thin profit margins requires operational excellence—a level of efficiency many med spa owners, who often come from clinical backgrounds, may lack.

"In order to be affordable, you have to be operationally excellent."
— Heather Terveen [15:40]

She compares med spas to businesses like dry bars, which offer limited services and can maintain competitive pricing through streamlined operations. Med spas, with their diverse service menus, find it harder to achieve the same level of operational efficiency without sacrificing profitability.

Importance of Premium Positioning

Transitioning to a premium pricing strategy not only enhances profitability but also increases perceived value among clients. Heather cites studies that support the benefits of premium pricing, including higher customer loyalty and better client retention.

"Customers associate higher prices with higher value."
— Heather Terveen [22:05]

She shares findings from a Harvard Business Review study demonstrating the price quality effect, where consumers perceive higher-priced services as more valuable. This perception leads to greater trust and willingness to invest in premium services, benefiting both the client and the business.

Supporting Research and Statistics

Heather reinforces her arguments with compelling statistics:

• A McKinsey & Co. study found that businesses focusing on premium pricing enjoy higher customer loyalty and retention.
• The Journal of Consumer Research revealed that 79% of consumers are willing to pay more for services they believe offer better quality and expertise.

These studies underscore the financial and reputational advantages of adopting a premium pricing model over competing solely on affordability.

Shifting Mindset and Team Alignment

A critical component of transitioning to a premium model is aligning the entire team’s mindset. Heather explains that the owner's belief in being affordable permeates the business, influencing team members and hiring practices.

"When you are the owner of your practice... you set the tone for what everybody else... is going to believe."
— Heather Terveen [10:50]

She emphasizes the need to shift beliefs from affordability to premium value to ensure that all aspects of the business, from pricing to client interactions, reflect this new positioning. This alignment fosters a team culture that supports high-value service delivery and effective sales strategies.

Practical Steps and Resources

Heather offers practical advice for med spa owners looking to make this transition:

• Evaluate and Adjust Pricing: Reassess service menus to reflect premium pricing that aligns with the expertise and quality offered.
• Enhance Operational Efficiency: Streamline services to focus on high-impact offerings that can be managed efficiently without compromising quality.
• Invest in Team Training: Equip team members with the skills and confidence to make bold recommendations and uphold the premium brand image.

Additionally, Heather introduces the Premium Patient Magnet Toolkit, a resource designed to help med spas attract and retain premium clients. This toolkit is available for $47 and provides strategies to magnetically draw in high-value patients.

"We are a premium solution. We are the experts and the authorities at what we do."
— Heather Terveen [35:20]

Conclusion and Call to Action

In wrapping up, Heather urges med spa owners to commit to abandoning the affordable pricing strategy in favor of a premium approach. She underscores that this shift not only enhances profitability but also elevates the business's reputation and client satisfaction.

Heather invites listeners to explore the Med Spa Advantage program, aimed at helping boutique med spas grow revenue and profits while reclaiming personal time and reducing stress.

"Decide once and for all that we are not the affordable price leader. We are a premium solution."
— Heather Terveen [40:50]

For more resources and to join the Med Spa Advantage program, listeners are directed to visit heatherturveen.com/apply.

Key Takeaways:

• Avoid the trap of competing solely on affordability.
• Embrace premium pricing to enhance perceived value and profitability.
• Align your team’s mindset with your premium positioning.
• Invest in operational excellence to support your pricing strategy.
• Utilize available resources like the Premium Patient Magnet Toolkit to attract and retain high-value clients.

For more insights and strategies on growing your med spa or aesthetic practice, subscribe to the Med Spa CEO Podcast and join the community of thriving med spa owners.