Recession Alters Aesthetic Marketing Strategies

MIAMI BEACH — Offer discounts, combine products and procedures into packages, and offer value-added products or services—these are among the strategies an aesthetic dermatologist can use to survive the economic downturn, according to a panel of dermatologists.

A recession also is an important time to optimize customer service and marketing efforts.

Monitor costs closely, keep inventory at a minimum, and negotiate deals with suppliers, dermatologists nationwide recommended during the South Beach Symposium.

Know your patient population and demographics, said Dr. David E. Bank, who is in private practice in Mount Kisco, N.Y. "The country is so diverse—disposable income is so different, job loss is so different. Where we are in Westchester [N.Y.], we have a lot of Wall Streeters who have lost their jobs, so you have to be cognizant of that."

"Reports say plastic surgery [business] is down 25%-50%, and dermatologists are down 10%-50%," said Dr. Michael H. Gold, a private practice dermatologist in Nashville, Tenn.

Medical dermatology generally is suffering less while aesthetic procedures, especially higher-priced offerings like breast augmentation, are down overall, according to a report in the New York Times ("Vanity's Downturn: Botox Use, and Allergan Sales, Dip," Feb. 4, 2009).

"In this economy, even noninvasive procedures are down," Dr. Gold said.

Sales of Botox (botulinum toxin type A, made by Allergan) dropped 3% in the last quarter of 2008 versus the year prior, and the company's dermal filler business was down almost 9%, according to the report.

"I occasionally offer 10% off Botox, but I will not compete with the $9.99 special from a spa," Dr. Gold said. Work with patients to bundle procedures and products, he advised.

"I don't like discounting," said Dr. Doris J. Day, a dermatologist in private practice in New York. "I find you become a discounter and patients wait for the discount. Instead, I believe in value added. Provide an extra product, and then they are trying a new product or service they can continue [using] down the road," she said.

"I'm an optimist—a good recession is a terrible thing to waste. You have time to make changes now," Dr. Day said. For example, assess the fiscal health of your practice, train your staff to optimize customer care, spend the time to update your Web site and online marketing, and focus on your existing customers, she suggested.

Carefully watch every penny you spend during a recession, Dr. Gold said, especially "those of us who like expensive toys." If you own your own building, turn off the lights at night, he said. Also, discuss cost-saving measures with your office staff to make them a part of the process.

"Ask companies about any special offers—such as 'buy one syringe, get one half price,' " Dr. Gold added. "Companies are negotiating, and if you are in the market to buy a laser with cash, this may be the best time."

"Keep overhead low and inventory low," Dr. Bank said. "This may not be what some of the companies want to hear, but you really do not need to keep tons of supplies on hand." Most items can be shipped within 24 hours.

He also suggested increased marketing. "In this market a lot of your competition may be cutting back on marketing, and you may want to run in the opposite direction." Internal marketing to existing patients is always the strongest strategy, he said.

Keep your practice Web site up to date and professional. "See what your colleagues are doing," Dr. Gold said. "I spend a lot of time on their Web sites."

A diverse dermatology practice—with both medical and aesthetic services—is an advantage, Dr. Gold said. "Medical derm will not go away—acne patients and eczema patients will always be there. And this economic global crisis will come to an end—hopefully sooner than later."