Med Spa Success Strategies: Secrets to Success - Benchmarks From 250+ High Performing Med Spas! Interview with Louis Frisina

Release Date: June 18, 2024

In this insightful episode of the Med Spa Success Strategies Podcast, host Ricky Shockley engages in a comprehensive discussion with Louis Frisina, a Harvard-educated biotech entrepreneur and a luminary in the aesthetics industry. With over three decades of experience, Louis has been instrumental in building multimillion and billion-dollar ventures for renowned companies like Fisher Scientific, Collagenesis, and Q Medis. Currently semi-retired, Louis dedicates his time to private consulting, sharing invaluable benchmarks and strategies gleaned from collaborating with over 2,500 high-performing med spas globally.

1. Introduction to Louis Frisina [00:00 - 02:23]

Ricky begins by highlighting Louis's impressive background, emphasizing his pivotal role in introducing Restylane to the U.S. market. Louis recounts his journey from discovering Restylane in Brazil to navigating the FDA approval process and eventually selling the product to Medicis Pharmaceuticals. His extensive experience encompasses advising private equity and hedge funds on mergers and acquisitions within the aesthetics sector.

Notable Quote:

“I ended up getting the product registered and ultimately selling it at the time to a big aesthetic company called Medicis Pharmaceuticals to move ahead.” — Louis Frisina [01:34]

2. Key Benchmarks for Med Spas [02:23 - 08:17]

Louis delves into crucial benchmarks that med spa owners should monitor to gauge their practice's performance:

• Average Annual Service Revenue per Patient: Approximately $2,400.
• Average Spend per Visit: Around $563, with patients maintaining an average of 3.2 to 4 procedures annually.
• Visit Frequency: Best-performing med spas see patients visiting 3.8 times per year.

He explains that while med spas generally outperform dermatology and plastic surgery practices in patient visit frequency, economic downturns like the Great Recession and COVID-19 posed challenges. The key to overcoming these hurdles lies in enhancing the patient journey and experience, thereby fostering trust and encouraging repeat visits without resorting to commoditized pricing.

Notable Quote:

“It's all about the trust. And you know, you're putting your face in your body, in the hands of somebody else.” — Louis Frisina [06:46]

3. Enhancing Patient Relationships and Communication [08:17 - 16:39]

Ricky and Louis discuss strategies to increase patient visit frequency, especially during economic uncertainties. Louis emphasizes the importance of personalized communication and treating patient relationships akin to personal friendships. Implementing VIP programs, utilizing emails, texts, and social media, and maintaining continuous touchpoints are pivotal in keeping patients engaged and loyal.

Notable Quote:

“You're trying to do two things. You're trying to get them to come in more frequently, and you're trying to have them meet the pricing without having to go to some type of commoditized pricing in your practice.” — Louis Frisina [05:20]

Louis also highlights the significance of creating a memorable and exceptional client experience, comparing it to the hospitality standards of brands like Ritz Carlton. From the moment a patient walks in, every interaction should reinforce their decision to choose your practice over convenient, impersonal alternatives.

4. Financial Management and Profitability [16:39 - 24:17]

A substantial portion of the discussion centers on the financial aspects of running a med spa:

• Gross Profit Margin: Best practices aim to maintain a 70% or higher gross profit margin, ensuring that the majority of revenue covers operating expenses and profitability.

• Expense Allocation:

  • Rent: Should not exceed 5% of monthly revenue.
  • Marketing: Currently rising to 7-8% due to increased competition and the need for diverse advertising channels.
  • Staff Costs:
    • Estheticians: 15-20% of gross revenue
    • Mid-level providers: 20-25%
    • Doctors: 30-35%
  • Medical Supplies: 2-4%

Louis underscores the necessity of meticulous profit and loss (P&L) management, advocating for daily and monthly reviews of financial statements and key performance indicators (KPIs). This granular approach ensures that practices can swiftly identify and rectify financial discrepancies, avoiding the perilous "rob Peter to pay Paul" scenario where cutting essential expenses leads to long-term detriment.

Notable Quote:

“And unless you do that, you're subject to commoditization in your pricing and ultimately, you know, from a financial standpoint, subject to declining profitability in your practice.” — Louis Frisina [11:01]

5. Strategic Equipment Purchases and Service Expansion [24:17 - 34:42]

Transitioning from financial management, Louis addresses the critical evaluation of equipment investments. He advises against high-capital expenditures, especially when projected returns on investment (ROI) are uncertain. Instead, he recommends focusing on services with lower initial costs but high revenue potential, such as:

• Weight Management and Control: Utilizing therapies like Ozempic, Semaglutide, and Tirzepatide to manage patients' BMI, fostering cross-selling opportunities.

• Hair Restoration: Offering treatments like PRP (Platelet-Rich Plasma) and Exosome therapy, which require minimal capital investment while addressing a growing patient demand.

These service expansions not only diversify revenue streams but also enhance patient retention by addressing broader aspects of health and wellness.

Notable Quote:

“And I highly encourage these practices to take a hard look out there. And there are really good, many good opportunities and best practices have already incorporated this kind of wellness piece into that so that they're doing almost a 360 degree view of the patient.” — Louis Frisina [34:19]

Conclusion

Throughout the episode, Louis Frisina imparts a wealth of knowledge tailored for med spa owners aiming to elevate their practices. From maintaining optimal financial health and enhancing patient relationships to strategic service expansions, Louis's benchmarks and strategies provide a robust blueprint for sustained growth and profitability in the competitive aesthetics industry.

Notable Quote:

“You got to do it on a timely basis. It's more about the window of opportunity in terms of business success than it is necessarily about the amount of opportunities that you have.” — Louis Frisina [31:06]

For med spa and aesthetics practitioners seeking to scale their businesses, this episode offers critical insights and actionable strategies to navigate challenges and capitalize on opportunities in the ever-evolving market.

Note: This summary excludes advertisements, introductory remarks, and concluding segments to focus solely on the content-rich discussion between Ricky Shockley and Louis Frisina.