Episode Transcript
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Speaker 1 (00:03):
You're listening to Medical Millionaire, your podcast for medspot owners,
medical aesthetics, cosmetics and elective wellness entrepreneurs. Each week, we
dive deep into powerful marketing strategies, proven scaling tactics, and
the secrets to attracting high end clients, all while staying
ahead of the latest industry trends. Join us as we
(00:25):
uncover insights from top industry leaders to help you boost revenue,
enhance patient satisfaction, and master the art of marketing your practice.
Hosted by Cameron Henpill. With over a decade of experience
in the aesthetics industry, Cameron has supported thousands of practices
and providers, working with some of the biggest names, most
well respected brands, and elite industry thought leaders in the field.
(00:46):
If you're ready to level up your practice and become
a true medical millionaire, this is your podcast.
Speaker 2 (00:52):
Here's your host, Cameron Handpill. Hey, what's up everybody? Cameron
Henpill here, host for Medical Millionaire. Thank you so much
for taking the time to tune into the podcast. Our
goal is to give incredible value and insight for practice owners.
So if you're thinking about getting into this amazing world
of aesthetics, opening up a medspot or wellness clinic. All
(01:15):
of these episodes are one hundred percent designed for you
and help take your practice to the next level. So, everybody,
I have an amazing guest on today, somebody that I've
been wanting to interview for a very long time. I
want to welcome Jessica Hunter to the show. She's out
of Vancouver, Canada. She owns Hunter Consulting. She has been
consulting for over a decade in medical aesthetics. She comes
(01:39):
with an NBA in business so she understands the business
side of how to run an effective practice. And also
she's worked with over one hundred practices one on one,
so many hours of study, many hours of connecting and
helping practice owners scale. Jessica, I'm honored. Thank you so
(01:59):
much much for joining me. Welcome to the show.
Speaker 3 (02:02):
Wow, thanks Kevi, It's so such a great honor to
be here. A big fan of the show obviously love
your stuff, so thanks absolutely.
Speaker 2 (02:10):
I know that the audience would love to know more
about your amazing background. Leaning on that a little bit
more for us, yeah for sure.
Speaker 3 (02:20):
Well, I always say I fell into the medical aesthetics
space prior to consulting in medical aesthetics. I spent ten
years in medical device and supply so I worked for
some big fortune one hundred companies doing strategic planning and
product implementations and new strategic product launches, so for three
AM and Striker. So I did that before even kind
(02:42):
of falling into the medical sthetic field. And I got
recruited by Allergant to be an external consultant for them.
So that's sort of how I kind of joined our
little cult of medical aesthetics. And I consulted for them
with their top clients for five years before going out
on my own. And it really just was an opportunit
where I just saw a really big need with surgeons,
(03:04):
plastic surgeons, nps, you know, business owners that were creating
their own businesses and they were amazing providers, but they
just really didn't understand the business fundamentals. And I just
saw a gap there and I saw how much I
could impact their business, and it just kind of, you know,
fueled up fire in me to really want to be like, Okay,
we can create something that you can understand, and I
can help you create a really good plan that makes
(03:24):
sense for you to continue to help you grow and
scale and just achieve those goals that you wanted. So
that's sort of how I got into it, and now
I'm stuck. I mean, I'm obsessed with the industry. I
have the best clients, I always say, and I just
want to really help them achieve their long term goals.
Speaker 2 (03:42):
It's so important, you know. Like I've been going to
conferences for many years, I've also been in the industry
for about a decade. I go to conferences and I
see a tremendous amount of clinical study, clinical courses, clinical classes,
which hey, I don't want to discredit. That very important,
and I appreciate that you bring this NBA background of
(04:03):
business to the industry more than I could actually ever
express because I've been trying to teach this stuff for years. Guys,
if you're going to run a practice, you have to
run it like a business. And so I want to
ask Jessica, who's on with us today. Let's respect her
time and all of the key insights she's going to
(04:24):
give to us today. What I want you guys to
understand and what you're going to get out of this
particular interview is how to set pricing based on data,
not emotion. And I want you guys to know the
most important number every single month that you should be tracking.
And she's going to lean in on that common mistakes
(04:45):
in staff compensation and how to fix them, smart ways
to incentivize performance without overpaying, and when and how to
shift from hourly compensation to commission based pay to performance.
I think that there's a lot of questions around that,
so we're going to get into some of the nitty
gritty stuff with that, Jess. The first thing I want
(05:07):
to ask you is the financing stuff. Help the listener understand, like,
what is the biggest financial mistake you see MEDSPA owners
making when it comes to pricing, understanding their profit margins,
those sorts of things.
Speaker 3 (05:24):
Yeah, I mean, first and foremost, I think the biggest
issue is that we don't understand the financial landscape of
our business. So I think the very first thing anytime
I work with a client is I want to understand
your business and your particular needs in that business is
the services that you offer. You know, and understand your
margins because these benchmarks that we sometimes throw at at
(05:45):
conferences cam as you see, are just that they're benchmarks
and they're not relative always to your exact needs and
kind of what you're offering. So very very first and
foremost is like when we understand someone's business, Yes, your
P and L tells a story, that's your profit and loss.
I mean, that's something that kind of gives you a
real general baseline. But if you don't have someone who
is going to look at your monthly service revenue and
(06:07):
understand the breakdown of where your service revenue is coming from,
that's a key miss. You have to understand that. So
that's number one. And then when we understand that, we say, okay,
we know where you know where our revenue is coming from.
We know sort of our service makes Okay, how profitable
are each one of those services? And to really understand
that you have to go line by line. So, for example,
(06:28):
if we're going to look at neurotalks and a really
easy example, I want to understand of course that product
cost per units, that's for sure. I want to understand
how much we pay that staff, both is that hourly
rage as well as that commission combination every time we
do that service. I want to understand a miscellaneous consumables syringe, alcohol,
swell gloves. I want to understand our overhead costs for
(06:50):
the allocated time that we do that service. Now, it's
a big difference if we do a service in fifteen
minutes versus thirty minutes. And I think that's a key
component that we need to understand as well. And so
when we look at all of those things, then we
can definitely understand, Okay, how much does this service actually
cost us in the allocated time that we schedule. So
that's really really important. You can't even think about how
(07:12):
you're going to price that service without understanding some of
those costs. If that makes sense, Cam.
Speaker 2 (07:17):
Jeez, I love it. What a well rounded answer. I mean,
I have talked to so many practice owners and a
lot of the times I hear most of my revenue
comes from injectables, And I'm a financier myself. I invest
(07:38):
in various things and understand how to read a P
and L and a balance sheet, and I've studied finance,
and I think it's a it's absolutely crucial for a
practice owner to understand finance an entrepreneur, if you're bringing
in revenue, you need to understand P and L profits,
those types of things. How what do you most like?
What do you see right like as you're working with
(07:58):
practice owners because I hear that, and I'm not in
the business of dissecting a p and L. You are
when you see a p and L, Let's say you
let's say you look at ten p and ls in
the last month, how many of them are accurate to
your standards for them to really understand how much money
they're making any of them? I'm not sure.
Speaker 3 (08:18):
Yeah, Like again, it's it's just a snapshot of someone's
business in their fiscal year, which could be a calendar
year or you know, whatever year, but their fiscal year.
And so although I think a lot of consultants or
you know, financial advisors are going to look at that,
when they get that to my client, they have no
idea what they're looking at, and it doesn't have enough
rigor and detail to really understand maybe where you're losing money,
(08:39):
where you're gaining money, what sort of like you know,
corrections or adjustments that you can make to be more profitable. Right, So,
the goal is to be in this industry long term, hopefully, right, like,
you want to have a business more than twenty four months.
We know that, you know, within twenty four months or
less is usually where we see someone not be successful.
So we can get over that hump and start generating profit.
(09:01):
At that stage, you know, that means that you're going
to have some more longevity in here, so you know
the P and L Again, it separates it between you know,
your cost of goods and obviously your revenue, your marketing expense,
sometimes you know your overhead. You know, usually it's not
even separated that much. So we'll take that and we'll say, okay,
I want to know exactly, you know, how much our
cost of goods are, how much our marketing spend is,
(09:22):
what our overhead is, and I think any other you know,
other kind of associate costs like might be your car,
you know, might be some education investments, that kind of thing.
And then we want to understand the margins because all
of it's relative to the amount of revenue you generate.
So when we take a look at your marketing spending,
for example, that should be really relative to you know,
the revenue you're generating and or you're forecasting for the future.
(09:44):
So that's part of it that really needs to kind
of be ironed out and understood instead of just a
general these are my expenses. I need to decrease my
expenses to make more money. That is usually the last
place that we're going to go when we're looking at
something like that.
Speaker 2 (09:59):
Yeah, totally. And what would you say, like, out of
all the services that are done, which ones carry the
highest margin? Which ones are the least profitable service treatments? Yeah,
so it really depends.
Speaker 3 (10:10):
So I think it's really interesting when we ask this question,
and I always ask this question to my clients, you know,
where do you think you're most profitable? Because you have
to understand of how you're analyzing that data. So if
you're looking at, like, for example, a laser treatment, and
you have a certain device that you're looking at, so
now we have to understand, okay, the consumable, So that
device has, of course, does it have a lease payment,
(10:33):
does it have a warranty payment if we're kind of
two years longer, And then have we averaged that out
based on how many of those treatments we do a month.
So let's pretend, just for some round numbers, it does
have a lease payment and it's twenty five hundred dollars
a month, and let's say that we average about, you know,
fifteen of those treatments a month. Then you can average
that and you can put that into your costs when
you're trying to allocate how much that treatment costs you. Right,
(10:55):
So it's really important to understand that laser hair removal
is probably the prime example I get all the time
where I'm like, oh, Jess, I make tons of money
off this, Like, we'll do you because laser hair removal
is really saturate in our market, and we can only
charge a certain amount of money to perform these services.
And when you allocate all the other costs as our staff,
you know, any sort of warranty or leasing in this,
(11:18):
as well as the time allocation that it takes with
our overhead. Is it profitable? Is it really a treatment
we want to invest time in? I mean, those are
the things that you need to understand before you make that.
So it's not I can't really give you a black
and white answer what's most profitable. It really depends, and
it depends on lots of things, and it can depend
on volume and how much you're paying your staff. Right. So,
somebody who's doing a laser treatment versus an r and
(11:40):
doing an injectable, those are two different compensation plans that
are definitely different and that will definitely infect affect our
overhead profit for that service.
Speaker 2 (11:49):
Yeah, yeah, no, absolutely, I knew that you were going
to say that every situation is different, right, every device
is different. Depends on the least payments you have. It
depends on your marketing costs. I'm sure you factor in
the market getting costs based upon if they are trying
to acquire patients for that particular service. Like, I don't
know how granular you get, but I think you know, guys,
(12:10):
if I'm if I'm hearing her correctly, the foundational approach
to having a very successful business and a very successful
practice is understanding your numbers and understanding finance. And I
think that you really want to put yourself in a
position to understanding the fundamentals before you just go buy
a two hundred thousand dollars device. What does it really
(12:31):
look like?
Speaker 3 (12:31):
Right?
Speaker 2 (12:32):
Yeah, because I hear I see it all the time.
If I buy the device, the patients will come. Okay,
you might want to, you know, be careful of that,
do your study right and understand the financing behind it.
Speaker 3 (12:42):
Yeah, and first and foremost you have to understand too,
like who is your current client? I mean, who is
your current client in your database? Is there you know,
a combination service that you can already you know, educate
these clients on that there's a need. So I think
that's the first place I always start. I'm like, Okay,
if we want to buy you know, M sculpt Neo,
do already have a bucket of clients that are on
a GLP one that would have a need for that?
(13:04):
You know, can we do a segmentation of those clients
and create urgency to do that? Is that even an option?
I mean, if you're just getting a device where it's
totally outside of your realm and who you're currently trying
to a acquire or be you already have, then you've
got to ask yourselfing is this really a good investment?
And then the second thing is capacity? Do you have
the capacity to take something else on? Do you actually
(13:25):
have you know, the providers, this physical space and the
opportunity to do that. I think sometimes we think, you know,
we just want more, we want what's ever new, what's
ever trending, and we haven't really taken a look at
you know, one, who are demographics, who our current client
is and who we want it to be. And then
the second piece is a capacity issue for sure.
Speaker 2 (13:44):
Yeah, it's almost like I'm going to go get another
you know, the fancy object because competition has a close by,
we have to have it. That's a dangerous cycle. Oh,
I wish.
Speaker 3 (13:53):
We never looked at competition. I mean, I'm a big
believer in like steadfast in terms of like what your
goals are and your strategic plan and just kind of
ignoring the outside noise because it can be all consuming.
And with social media, I find my clients are you know,
this person's offering eight ninety nine dollars botox and this
person's you know, And I'm saying, listen, we can totally
take that and we can look at that pricing. Does
(14:14):
that make sense for you? Are you losing money on that?
So what is the goal of that? You know? I
think that brings me to memberships a lot when we
talk about that and membership pricing, it just it needs
to make sense. If it doesn't financially make sense, then
why are we doing that? And I think, you know,
it's like generating all this revenue where we're like, oh wait,
we actually lost money, you know, on that, So how
(14:37):
does that help you get ahead? And I think those
are the hard questions sometimes we kind of miss when
we get excited about doing promotions or events or implementing
a membership, we kind of need to just take a
step back and really analyze what are we trying to do?
What are our prices? Does it make sense? You know,
what's our return on this? Before we kind of jump
the gun on it?
Speaker 2 (14:57):
What are your thoughts on members ships? And before you
jump in if you talk to private equity financier, it's
almost like this creates a liability because the services aren't
rendered yet on balance sheet, And then if you think
(15:19):
of it on a different approach, it also can increase
retention rates and make a patient sticky. Right, So, I
mean I understand both sides of that coin. You live
in it all the time. I think there's benefits and
non benefits. What are your take on it?
Speaker 3 (15:38):
Yeah, I agree with you. I think there's benefits and
non benefits. I think, and the term membership is pretty broad, right,
there's all these different kind of nuances you can create.
But I think you know, when we think about membership,
the goal is again increasing patient frequency and increasing patient volume.
So you're trying to get people in more often, and
then you're trying to get people to do additional service
(16:00):
so you know, your person who comes in every two
and a half three months for botox, we're trying to
cross them over to get a clear and brilliant and
I put like whatever, And I think that we kind
of forget about what the purpose of the membership is
and that's what it is. And so when we're just
doing something where you know, they're coming in for chemical
peel or hydrofacial and some of these you know, maintenance services,
(16:22):
but there's no actual kind of strategy behind Okay, well
why are we doing this at you know, ninety nine
dollars or hundred twenty nine dollars and you know, effectively
we're breaking even on this or maybe not generating any
money on it. I mean, what's the point of it?
So I do think you know, when you have packages
and you sell packages and so again you're rendering obviously
(16:42):
that payment upfront and then providing the service later. It
almost has a very similar impact to that, although you've
already got the payment right versus that membership which is
a reoccurring payment. So I think there's I think there's
you know, kind of goods and bads of course, and
I think it just needs to be structured in a
way that allows you to sort of get to what
your goals are with it. I think doing something where
(17:04):
we can create VIP pricing, for example, can be really
beneficial if our promotions and everything align with that. So
if we're still going to do monthly promotions again on
a discount for neurotoxin being our easy example, you know,
why would someone join our VIP program for membership discounted pricing?
So that all has to play into it. And when
people ask me like, oh, my membership isn't successful, like, well,
(17:27):
we kind of you know, go down the rabbit hole
and it's like, well, of course it's not successful. Why
would someone join this program and still you know, get
your emails every month on ten different promotions you're doing.
Of course it's not successful. So I think all of
that needs to be taken into consideration and then just
taking a step back and saying, Okay, this is actually
what the point of it is. It might not be
the ultimate revenue generator, which I actually personally don't believe
(17:48):
memberships are. I believe they have another kind of factor
in there in terms of retention, and then obviously volume
and frequency that's what they're for. Just like all other
membership programs kind of an opinion around the world.
Speaker 2 (18:00):
Yeah, I mean have intent, you know, have a purpose,
I mean, have strategy. You know, I would suggest studying
some other practices, reach out to your colleagues who actually
have a successful membership program. And if I'm hearing you correctly, Jess,
it's about frequency, it's about educating them on the other
services that you have. So not necessarily cross sell, but
(18:22):
I guess cross sell is the word, but it gives
you the ability as a provider to create this in
depth relationship and build on a treatment plan where they're
going to get the outcome they're looking for. And there's
there's there's like there's an exchange, there's a value of
exchange there. And if your if your plan, if your
(18:42):
membership plan is not driven around frequency, increasing the cost
per ticket, if you will increasing your patient lifetime value. Yeah,
I think those are some of the very fundamental things
people should look for, not just we're going to create
a membership plan, because.
Speaker 3 (19:00):
Everybody's going, everybody's got on. Everybody's going, you know, sadly
down the street has one, and it needs to have
you know, chemical peels, internal planning, and you know, and
I think, I think you're totally right. Can we just
lose sight of the goal and the objective of it
and what we're trying as a business trying to accomplish
with it? And then again, I think when you see
you know, private equity come and you said, listen, this
(19:22):
is what we do. This is sort of our program
with our membership. This is you know, we have this
kind of three months where we build a relationship and
they get kind of maintenance services and then you know,
they have this relationship with our esthetition who suggests you know, uh,
you know, a more intense treatment, more laser, you know,
resurfacing or you know, something that's more significant and a
cost and b outcomes and there's that trust there and
(19:45):
now we can do that and we can you know,
jump into that. That's where it really pays off. That's
what makes sense. Right. So that's sort of my thoughts
on membership, But I guess in a very broad broad sense.
Speaker 2 (19:57):
No, I'm glad you touched on it. I think it's
a it's a question that comes up a lot. Actually,
in me, working with as many practices as I have,
it seems to come up quite often, and I feel
like only a fraction of the industry has actually nailed it.
I agree, I agree, you know, so, I mean, shoot,
I'm glad we talked about it. The other thing I
(20:19):
want to talk to you about too, And I know
that you are an expert on this, and I think
a lot of practice owners struggle with this approach. It's
how does a medical aesthetics practice a wellness center? How
do the owners approach staff compensation, like, especially when deciding
(20:39):
between like commission performance based hourly pay. How do you
look at that? That's a big question. I know a
lot of practice owners struggle with it, Like what's your
playbook there?
Speaker 3 (20:53):
I mean, this is probably one of my favorite topics.
I think if anyone's ever seen me speak, I always
take the opportunity to speak on staff compensation for a
couple of reasons. One, I mean, it's a black hole
for sure in our industry. But I always say it's
sort of like the wild wild West in medical sesthetics.
It's like there's not really this sort of like book
or you know, kind of playbook to follow, and everybody
(21:14):
does their own things. So I think it's a really
really good topic to talk about. So first and foremost,
I would say, you know, my main thing about staff
compensation is that we want our staff to all be
treated fairly. For sure, everybody should be treated and compensated fairly.
But in the same breath, not everybody is actually equal.
(21:35):
And that's the reality of a business. You have some providers,
support team members whoever, that have more external value to
the business than others, and we have to understand that,
and compensation plans have to recognize that. Definitely in twenty
twenty five, So I personally love doing combination of hourly
(21:55):
and a commission structure. And the reason I love that
is twofold one is I do believe that having an
hourly uh sort of hourly you know wage for our
clients or or our staff, our providers gives them sort
of onus into more of the whole team atmosphere. You know.
It's one of those things where if you have somebody
who's just on a compensation that's just a percentage of commission,
(22:17):
you know, they kind of plugging, plug out, They kind
of go and do what they need to do, and
then they kind of leave, and we miss a little
bit of that team atmosphere, a little bit of pitching
in for each other and so I think doing a
hour really great helps with that. And then the second
piece is, you know, I think when you do a commission,
is that that really allows you to empower your not
(22:37):
just providers, but all your staff to have some skin
in the game. I think it allows them to be
empowered to generate more income and you know, really understand
the business and really invest themselves in the business. And
so that's that's definitely what I always suggest to my
clients is we build something that makes sense. Now with
staff conversation, this this whole idea that someone's not treated.
(23:00):
You know that not everybody is compensated the same is
based on level of expertise and the value that they
bring to the business as well as how much they
actually provide for the business. Right, So I think those
two things we have to consider. So how valuable they are.
They might be someone who's been there for a long time,
they have a you know, a big client tele list,
maybe they're a trainer. And then obviously the revenue they
(23:24):
generate for the business is the second fold that we
really want to kind of understand. So those two pieces
is how we create compensation plans, at least for like
a really kind of bare minimum of how that works.
Speaker 2 (23:38):
I like it. There's a lot to unpack there, and
it's okay, so let's talk about performance based compensation.
Speaker 3 (23:46):
Okay.
Speaker 2 (23:47):
Let's like, let's look at two roles, okay, and I
think both of these roles are extremely critical to a
practice running with efficient understanding of team structure and profits.
Let's call it that. Let's take a role that is
front desk. Okay, front desk, phone calls coming in velocity,
(24:09):
you know that. Let's just take the practice is spending
correctly on marketing, you know, ten to twelve fifteen percent
of top line revenue on marketing. It's kind of my
KPI for people in what I've seen out there be
very successful and phone calls are coming in, they are
booking online, there's website inquiries. And then let's I want
to talk about that role. And then the next role
(24:30):
I want to talk about is the provider that is
bringing in five hundred grand a million dollars. Let's break
that down. How important is that front desk person through
your eyes to the practice, Like, because I see what
I see is they are undervalued, underpaid, and undertrained.
Speaker 3 (24:50):
Absolutely, they're so important. And I think so there's two
folds here. Absolutely we want to be able to get
them the resources and support to be successful, and that
come in some form of training. Absolutely, But what I
always say is is training is sort of one and done, okay.
Training is like here, I've kind of motivated you, I've
given you, you know, some snippets of some tools, But
(25:11):
what have I left behind that you can implement to
be successful? And I think the more you can honestly
give a really clear kind of map or flow of
what that patient journey looks like and our expectations for
that person, the more successful they are. So for example,
for a front desk person, if you don't have a
really nice teat sheet of all the services you provided
(25:31):
and faques with all of them, you need that. That
sounds basic absolutely, but someone's going to call and they're
going to say, you know, hey, I'd like to book
in for THERMOFRACS whatever it is, and you need them
to and they're going to say, you know, what's my downtime?
How much is it going to cost? You know? Can
I be breastfeeding? You know? Can I drink that night? Like?
(25:54):
These are things as a really great you know, support
team member or receptionist they need to be able to
answer and need to be really educated about but I
can't expect them to know all this for twenty different services, right,
And so I would say giving them some of those
tools and resources at their fingertips is really helpful. And
then the second piece is that flow, right, that patient,
(26:14):
you know, that patient journey flow. So we're giving them
these answers, how are we scheduling them? You know, what
does that look like? What's their next step in that
for that journey of that patient from their end as
expectations and so I'm a big believer expectations for everything.
They start on the job description when you're hiring, by
the way, and they flow right through to be really consistent,
and you're constantly touching base saying hey, remember this is
(26:36):
what we do, this is how this flow goes, and
you know, and you're giving them that sort of again,
you're empowering people to take onus of being a part
of the business and investing in the success of the business.
So I think that's that's really important. Jumping to provider rules,
that's a little bit different, you know they are it
is we're in a service provider business and we generate
(26:58):
revenue mostly from people providing a service, and so we
do lean into our providers as are being general, you know,
revenue generators. That's just how it is. And so what
I do believe is that, you know, you do compensate
someone based on expertise and experience one hundred percent. I'm
a big believer in tiered system. So if someone comes
to you and they've got, you know, five plus years
(27:18):
of experience as an injector, first and foremost, they can
do five years worth of injectable techniques product use multiple
syringes at one time, there's a bunch of value just
that intrinsically comes there. And the second thing is that
you need to understand what is your you know, how
much do you do an hour? You know, you want
to find this out before you even start with them,
(27:40):
and like, so what does that look like? How many
patients do you see? What is your time slot for them?
So I can make a really good compensation plan based
on what your expectation is for revenue generation each month,
and it should be tiered. As you get to different stages,
you get more money in your compensation plan. That's just
how it works. I make more money and you make
more money and our margins will support that versus giving
(28:01):
someone just some flat fee of Hey, here you go,
you asked for this, have at our you know, then
let's hope for the best, you know again. It's just
empowering people to really be in charge of how they're compensated,
how they're making money, and motivate them to be invested
in the business totally.
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Speaker 2 (29:49):
So provider based that particular role, paid on experience, paid
on performance to her based everything that aligns with the
companies of active, the company's role, the company's goals for
the year, for the following years, whatever that looks like,
like that should be also the driving force, right, and
(30:09):
how they build their tiers around that, I would assume absolutely.
Speaker 3 (30:12):
And the tiers right CAAM would change based on the
services they provide, Like that's any thing, right, a junior
esthetician that is doing services that are in between maybe
one hundred and one hundred and fifty. Let's just say,
you know, revenue generating versus someone who is a laser
technician who primarily is selling packages. You know that are
a couple thousand dollars each Those are different. And again
(30:34):
someone who's an injector versus maybe someone who is our
nurse practitioner and sort of also has that hybrid role
of being a medical director. Those are all compensated and
tiered differently based on obviously the role, but then the
revenue that we expect them to generate. Because a junior
esthetician isn't going to do fifty k months. That's just
the reality of it, right, and so you have to
(30:56):
understand that, and so it has to be really you know,
outline that aid to be very particular to realistic expectations,
and then provider rules of what they can actually do
within the time period that they're working.
Speaker 2 (31:08):
I love it, alight. I'm gonna flip the script for
a sec. What if we do not do this, what
are the downfalls of us not compensating front desk? And
I believe that the front desk, whoever's taking these phone calls,
these inquiries, they need to cheat sheet. They need to
be training, they need sales training, and they need to
be they need to have performance based comp Would you
(31:30):
agree on the performance based conferference?
Speaker 3 (31:32):
Okay? Absolutely so?
Speaker 2 (31:34):
All right, So if they are not trained, if you
underpay the front desk and maybe I'm using the word
wrong front desk admin, as executive assistant, as receptionists, whatever
fancy term we want to put on it. You guys,
I'll get what I'm saying. If they're not set up
for success, what are the downfalls? Because what I see
(31:55):
and when I'm talking to practice owners is I'm a
big fan of online booking, huge, huge fan of online booking.
I think everybody that's tuning in knows that. But what's
interesting is what I'm consistently hearing still is more people
call than they book, and how many phone calls come
in a month, and how many missed opportunities do you have?
(32:17):
And are you listening to the phone calls that the
front desk is having? Are you honing in on that?
Do you have phone software that records and has how
many calls came in where they come from, and you
take the time to tune in to listen to the
phone calls, Like if they don't do that, there's a
lot of money that's lost right there.
Speaker 3 (32:38):
Yeah, and think about this. The people that are online
booking are typically repeat clients, so they know what they're booking,
they know the services they want. Now, the inquiries to
your point that are coming in via the phone are
new patients. They're looking for more information. So how important
is that to convert that person to come see us
and have a really great experience. It's vital. And so
(33:00):
I think to your point, online booking serves us great
need of being fast and efficient for for typically repeat clients.
But that's typically what it is. Whereas our front desk
person is that person gets the opportunity to really educate
credential who we are, what we do, why we do it,
you know, and really be able to follow that person
down there, you know, down the path. And so if
(33:21):
we don't have a software system to your point, that
we'll record calls or kind of see where you know,
this person goes down the funnel, I mean, they just
kind of get lost in the abyss. And if we're
spending ten thousand dollars on external marketing tools and our
objective mostly might have a landing page, but maybe our
objective mostly is for them to call gain a little
bit more information so that they'll book with us, and
(33:43):
we just lose them. I mean, what is the point
of spending that money. So to your point, absolutely it's
hand in hand. Like people are like, oh, you know,
I don't want to know. I don't want to compensate
everybody with you know, commission structure, I won't have any money.
I'm like, you have to understand how you're doing it,
and you have to understand how the margins work. That's impactful.
But if you don't do it, you have to understand
what a waste of money it is. All these other
things that you're investing in, it's just a complete waste
(34:04):
of money. And I would say that you know, that
reception role, that support role I always call it, or
that that front desk. It does have to be the
right person. Like I would say, like, if you find
that right person, let's keep them, Let's educate them, let's
let's give them all the tools and the resources they
need to be successful. It's I think what you see too,
Cam is like sometimes it's just not the right person.
(34:26):
And my clients have a hard time kind of letting
that person go. They call in sick. They're not invested,
they're not they're not really you know, into it. And
I would say at that point, like it's it's easier
just to cut them and find the right person and
really train them up and invest that time so you're
not just spinning your wheels.
Speaker 2 (34:42):
Slow to hire, quick to fire, you guys.
Speaker 3 (34:44):
Yeah, yeah, it's easier said than done. Though, it's easier
said than done. But yeah, yeah, I think sometimes we
keep people around longer than they that they want and
that we want.
Speaker 2 (34:55):
Yeah, I mean I still see it today, you know.
I mean I see people spending a decent out on
digital marketing, spending a lot of time on Instagram, Facebook,
digital ads, SEO, all this stuff, and then they don't
have the systems. They don't have the CRM, they don't
have the online booking, they don't have the tracking, they
don't have the attribution mechanics, they don't understand like the
true KPI is that they're supposed to have. It's almost
(35:19):
like you're told you're supposed to spend money on marketing,
so you are. There's no way to handle the lead
flow on the call side, or on the inquiry side,
or on the online booking side. So yeah, you know what,
And if you have somebody that's great, to your point,
if they do leave, it's because there's an issue. They're
(35:42):
not compensated correctly. If they're great, imagine them leaving and
you having to find somebody else and train them up
to what that person was. So if you guys have
someone great and you feel like you're they're not, Like
the comp plan is not correct, I think this is
the time to really assess that absolutely.
Speaker 3 (35:59):
And like, I mean, we're not really talking about this today,
but you know when we're talking about our stuff, like
I'm a big believer in quarter check ins, and these
are you know, you dedicate time. This isn't running you know,
by the front desk being like, hey, how are you
doing today? You know, this is you dedicating time giving
them questions beforehand, letting them come sit down with you,
you know, and you reviewing the questions together. Tell me
about what you're loving in your job. If I can
(36:20):
remove one thing from you today that you do that
you dislike, what would that be? Tell me if you
feel like you're compensated fairly, If not, how would you
like to be compensated? Like, have this dialogue with like
no you know, no interruptions, sort of dedicated time for
this person and you'll find they're going to tell you
so many things. But if you don't do this in
(36:40):
a frequency and a cadence that you know is makes sense,
it just gets lost in the shuffle. And so anyways,
I'm a big believer in like allocating that time for
all of your staff and giving them that opportunity. You
just sit back and you say nothing, and they've had
some time with the questions, and you ask the questions
again in person, and then they've I had time to
digest and think about the answers, right, and then they
(37:02):
can communicate that to you. And the wealth of knowledge
because I do this for my clients all the time
that comes out is like unbelievable. You're like, oh, I
didn't realize. She doesn't care about the hourly rate. She
just wants to know that she's going to get her
you know, monthly treatment covered, or you know, one something
for her mom. Like it's so crazy, you know. But
if you don't ask, you don't know. So kind of
(37:22):
off topic.
Speaker 2 (37:24):
No, I mean stop, assuming you know, have the conversation,
set expectations up front, then have the continuous conversation and
make adjustments, be willing to make adjustments. And then the
other side of that is a provider too. So if
you have a rock star provider and you're not having
this conversations or expectations aren't set, or the compensation maybe off,
and you know it, this could be a recipe for
(37:47):
a disaster. Like some of these providers are bringing in
a lot of money for the practice.
Speaker 3 (37:52):
Yeah, and I do well, absolutely think one of the
things to just talking about providers and compensation is when
I go through and I'll do a whole quarterly assessment
and for all the providers with my clients, and we'll
take a look and we'll do their hourly and their
commission and any retail commission they might have, and we
break that down like what did they make an hour?
What did we make an hour? What did that what
kind of revenue did they do an hour on you know,
month by month basis and quarter by quarter. And then
(38:14):
you sit down and you communicate to them with that
to them because I guarantee you they make thirty five
dollars an hour, you know, as their wage, and they
also have a commission structure. And you say, well, do
you know how much you made last month? They have
no idea, They honestly have no idea. And so if
you can say, hey, actually, you know you're saying you
want thirty eight dollars an hour? Do you know that
you averaged sixty five dollars an hour last month with
(38:35):
your commission and your you know, they're like, oh okay,
you know that kind of awareness and transparency, and that
only happens when again, you create a compensation plan that
is really based on you know, that sort of credentials
of expertise, experience, and then you know again sort of
how productive or you know, how profitable they are, and
(38:56):
you can be transparent like that with the entire staff,
absolutely parent, because when you say that out loud and
then you know, you say, like listen, you have that
opportunity to get to you know, Suey's, the Sujo's whatever
com plan. Once you have that level of expertise and
you're generating that kind of revenue, you know you have
that opportunity. You're not there yet, but you have that opportunity.
(39:17):
You can talk transparency and then it doesn't become this
hiding you know of like oh, I can't say that
you know Jessica makes x amount an hour and you
know Sueye doesn't or whatever. It's just fully open there,
and that really is like a sigh of relief and
a lot of clinics when I come and we're like, come, like, listen,
we need to we need to restructure this in a
more effective, long term way for you to be profitable
(39:38):
and for your for your providers to stay long term.
I mean, it just has to make sense for both parties.
Speaker 2 (39:43):
The hours were, the patients that were serviced, the treatments
that were sold, the products that were sold. I mean,
all this should just be housed in the E m
R system and that way you can pull these reports, right,
pull the reports and so then it's not like a
daunting task to do at the end of the month,
a quarter, whatever you guys want to do. Yeah, And
I mean I have seen to where providers should have
(40:06):
stayed with practices, but they left because the conversations weren't
had and they thought that they were underpaid and actually
they were paid appropriately. And the people who lose are
actually the provider and the practice, right. Absolutely, Yeah, it's interesting. Okay,
So the other thing I want to talk to you
(40:26):
about is I have yet to hear a practice does
not want to scale. I feel like every practice I
talk to they want to scale, they want to get bigger.
Maybe they don't want to have two locations or three
or four or five, but they all want more patients.
I don't think I've talked to a practice that's like, no,
want more patients. I haven't, And so you know it's
(40:48):
a cash pay marketing sales business. Really, what are some
of the if they want to scale and they want
to do it efficiently and effectively, what are some of
the key financial metrics they should be looking for, like weekly,
monthly to make smart decisions, not just I want to scale.
(41:13):
I'm going to do twenty percent this year, because right, okay,
we get that. How are you going to generate twenty percent?
Are going to spend more on marketing? Are you going
to spend less on marketing and have a better conversion rate?
Are you going to systematize you know, your stuff, Like
what are some of the things that you could help
our listeners from that aspect?
Speaker 3 (41:34):
Wow, it's a big question. But I'm going to just
push it back a little bit for a second and say,
for everyone I know that wants new patients, and for sure,
we should always be continuing for patient acquisition, that's just
part of the game. I want us to take a
step back and say, like, have we actually seen have
we actually maxed out our current patient population. You know,
what are they doing every time they see us? So,
(41:56):
for example, if you don't know your average your talk
and transaction for all of your patients, that's something you
should know. If you're doing anywhere between like twenty five
to thirty five units per person that you're seeing and
by the way, a half an hour time slot, you
have capacity to grow that. That would be the first
thing when someone I was like, oh my goodness, I
need more providers. Nope, nope, you don't. You need to
(42:19):
grow that because we know the average is forty five
to fifty five, so I want and that's even I
would suspect it on utilization rates, right, noh, utilization right.
So so what I want you to think about is like, again,
with all of our current clients, are we really maximizing
Are we at any sort of like capacity limitations with that?
You know, are providers doing as much as they could
(42:39):
be with the patients that they do have? That's the
first thing. And in the timeframes, you know, these really
experienced providers do more in less time, which of course
makes them more profitable. That's just that's just the you know,
the rule of thumb. If you can see four patients
in an hour for narrotoxin versus two, of course we're
probably going to generate more you know, revenue. So that's
(43:00):
the first thing. I think we look at our providers
and say, like, listen, how how are we doing in
terms of actual you know generation in terms of revenue
for everybody we're seeing this. That's the first thing. And
because we can do scheduling changes, we can align different
products and different sort of combination treatments that are going
to allow us to generate more revenue in less amount
of time. That's the first and foremost and that's that's
(43:22):
just profitability. That's just how like when someone says to me, Jess,
I want to be more profitable by the end of
the year. My first thing is to look at your
services and see how we're bracing everything and aligning everything.
That's the first thing. And the second thing is to
look at your scheduling and say like, Okay, now that
we've assessed this, have we made this as optimizing as
efficient as possible to generate the most So that's that's
the first thing. And then the second thing, I think,
(43:42):
you know, when we're being like we want to scale
and grow. It's like, Okay, are we at capacity with
all of our services? You know, like I said, are
they are they generating the kind of revenue we need
them to generate? And then do we have you know,
things that need to be kind of worked on a
little bit more before we add a new a new
service we bring in, you know something, do we have
(44:03):
the capacity to take that on? For example, we want
to bring on GLP ones, but we don't have an inspectitioner. Well,
have we done the assessment of what that's going to
look like maybe to bring in someone of that caliber,
and how much we're going to pay them per hour
and how many patients we're going to need to generate
each hour that they're working to make sure that makes sense.
That's just like the you know, the baseline there. And
(44:25):
so I think when we're thinking about growing, I always
take a step back saying like it's typically we're not
needing a new location. I would say it's very uncommon
or like you know, maybe let's say ten percent of
my clients where we're like, well, wow, we're our capacity,
we need a new location. That's that's not where the
growth can come from. The growth is more about efficiencies,
operational efficiencies, you know, strategically servicing those like the service
(44:46):
and the pricing and our patient you know, actual volume,
aligning all of those so that we're just more profitable.
And I would say, my client's I deal with now,
it's not necessarily they want to grow more revenue. You know,
they can be doing six seven million dollars in revenue.
You know, it's more like, how do I increase my profit?
How do I increase the profit? Because if you're doing
(45:07):
you know, and just for abstract numbers, if you're doing like,
you know, five million dollars in revenue, you have a
nice you know, you have a nice business. But if
you only are you know, five hundred thousand dollars in
profit every year that you do that, well, we probably
have some problems, yes, right, And so that's more of
the crucial thing. Now it's about it's about if you
want to sell, if you want to make a transaction
in the future, you really have to understand, you know,
(45:30):
what are these firms looking for? Because just because you
generate a ton of revenue, you need to be profitable.
That needs to make sense because why would someone take
you over? So there's other things that obviously come into consideration,
but I mean everybody talks about your ebitada is your forefront,
your foundation of how profitable your business is, and that
needs to make sense. So we talk about scaling and growing.
(45:53):
I would say most people aren't even they're not even
there yet. They need to understand how to be more
profitable with what they have before they can even invest in.
And again that's the bottom line that's really going to
help them.
Speaker 2 (46:05):
Yeah, I mean aesthetics practices trade on EBIDA. That is
your profit, that is your gross to net that's the
take home, that's that's the number that they trade at.
The higher the EBIDA, the higher the multiple valuation you get. Okay,
this is not a SaaS based software company trade on revenue, right,
(46:28):
And you make a great point. So two things. One
of the things that you said was the average capacity
or utilization is forty five to fifty percent. When I
look at a medical aesthetics practice, fifty percent of the
costs are fixed. I could be wrong in that, but
that's kind of based on my analysis. Most of the
(46:48):
costs are fixed. Now you have the performance based comp
but that also contributes to it to cash in net
income too. So if I have a practice or I
am a practice owner, and I want to grow. You're
obviously saying like the last resort is another location, because
chances are highly that you're not a capacity before I
(47:10):
introduce another service, another treatment by an expensive laser. Because
I want to grow at twenty percent this year, Let's
look at capacity, let's look at utilization. And there is
great softwares out there that can give you these numbers.
And I think that's one of the most critical numbers
you can look at. And I'm not the consultant, just
is yeah, this is to your point.
Speaker 3 (47:35):
Just you know, this industry has become more and more
sophisticated every single year. So ten years ago when I entered,
I mean to be honest, I don't think we have
the sort of systems and softwares that are available that
were particular to our industry at least that allowed us
to pull the kind of reports and datas that we
that we need and furthermore also allowed us to have
a bunch of other integrations and whatnot that are critical
(47:56):
for success. I believe in this industry. But you know,
now these sort of you know, these these sort of
systems are are so like so reletive readily available, and
so part of the necessity. If you can't pull this
information from the software that you're currently using, you're not
in the game. Like you don't understand your business because
just having an AMR that can book in patients and
(48:20):
send you know, email reminders or text reminders, that's like
the bare minimum. But that's like that's not even the minimum. Actually,
that's just like, you know, that's not what you need.
You need to be able to know what your providers
are doing every single month. You need to know the
spread from your service mix. You need to understand if
you can put your consumables in there, you know, pull
that there's a pluthorrup things that you need. But and
(48:41):
these systems can do that and they're at that level
of sophistication that you're talking about CAM. That is part
of like when I consult someone after we do financial assessment.
You and I talked about this, We go into operations
and say like, hey, do we have the actual you know,
platform that is going to allow you to grow? Do
we have something that can do all everything that we
needed to do and pull the kind of data and
(49:02):
reports that are going to able you to understand your
business so that we know you know where the you
know where the downfalls are or where you know where
we know the opportunities are, because if you don't, you know,
that's part of the implementation that we need to do.
Speaker 2 (49:16):
One hundred percent. And I mean, like what I saw
too when utilization rates we're low was there was a
big lack in the marketing spend and they'd want to
go both on GLP ones and everybody. You know, it's
like everybody's running to GLP ones right now. And I
do think that there's a time and place and the
margins are great and it's sticky and it's effective, and
I'm a big believer there. But I think before you
(49:38):
run into what is the next service and treatment, understand
your utilization rates, Understand your marketing to spend ratios based
on revenue to spend, and should you be spending more
on marketing to actually increase the utilization rates before you
both on the service like that, those are some of
the things that I think about. But before, like you
and I were having a conversation it was last week,
(50:00):
I believe, before we jumped on here, and you were
saying that most of the practices that want to exit
are doing revenues between a million and a million five, right,
And I get it. It's like you built up a
million dollar business, you know, maybe like you grinded to
get there, and you're like, look, I'm ready to transact,
(50:21):
Like I'm kind of tired, I want to move on.
I don't know. I'm sure there are some listeners tuning
in that that is your profile. You're a million to
a million five. And what Jess is saying is like,
most of those practices want to transact, but there's a problem, right, Jess,
what is that problem?
Speaker 3 (50:39):
You know, typically they're not profitable, and if they are,
they're not profitable to the extent that they're ready for
a transaction. You know, we kind of usually say that
that one point five is usually a place where, you know,
a transaction that would be worth the business owners time
and probably you know, want would be at a place
(51:01):
if all things are done or all things are done. Well,
what I would say is, like, you know, Kevin, you
and I talked about this because I think you know,
I would say, most people in our industry realize that
doing a transaction is going to be their long term
strategy or goal, and that's kind of the consolidation that's
coming into our industry now. To get prepared to do that,
(51:22):
they need to really start today. They need to start
today if you even are like, the best time to
start would be the day you open your business to
be perfectly honest, to set everything up in terms of really,
you know, again, just your services, you're pricing, what you're paying,
your providers, your service mix. You know how if you
are an owner and a provider, how you're in the business.
That's crucial to and setting yourself up so that those
(51:45):
profit margins can continue to grow and you can be
in a state where you know you are viable for
a transaction when you're ready. So I think that's a
really important piece. And if you were, you know, two
or three years into your business and you're like, Okay,
I think this is going to be the goal in
five years from now, start today, like you need to
start now, and you need to understand where your profit
(52:05):
is right now. And if you're in this you know
five six percent profit margin, which by the way, is
more common than you think, right, especially if you're under
twenty four months in your in your business journey, there's
some key things you need to do, like today, right now,
and it's it's going to be about aligning your finances
and really understanding where you're focusing your time and attention
(52:27):
and sort of those needs. So that that would be
my recommendation to anybody who is you know, thinking about, Oh,
you know, I really this consolidation game is coming. You know.
I think there's over one hundred and I want to
say over one hundred and forty firms that are active
in our market looking to purchase or partner with clinics.
So there's a ton and yeah, and so there's a ton,
(52:49):
so you know, but I would say, if you want
to get in that game, and even if it's five, six,
ten years from now, you need to do it today.
You just need to, you know, take a look at
your finances and outline everything today so you can be
in a really good position for the future.
Speaker 2 (53:05):
I'm glad you said that, and I you know, it's
I do see and hear practice owners saying, oh, I'm
not I'm never going to sell. You know, I'm never
going to sell. And that's fine. That's maybe a stake
you put in the ground today, but you never know
what life has for you in the future. You never
know you may move, something could happen in the family.
I don't know. But to her point, guys, if you
(53:29):
are not prepared, if you are not effectively running your
practice now as if it would transact in the future,
you're not running it as efficient as you can because
they're going to look at these types of things. So
start now, I mean, start acting as if you are
going to transact at some point. And I will tell
(53:50):
you there is always an expiration date. You're either going
to sell it strategically private equity, to a partner, to
a provider I don't know, pass it down to the kids.
You probably want to pass it down to the kids
in the most profitable way possible, absolutely, or you close
the doors like those those are the outcome. Yeah, we'll
(54:10):
make the most of it.
Speaker 3 (54:11):
Yeah, and I agree, Like I always say to my clients, like,
you know, what we're doing today is going to give
you options for the future. It's options. You could grow
and scale and have multiple locations. You could acquire another clinic,
you know what I mean. I mean, it's not necessarily
that transaction down the road, but it's all the same understanding,
you know, again, your efficiencies and aligning that and being
(54:32):
as profitable as possible. And of course there's all these
other things that people are going to say, like, oh,
I have to have a good culture, and of course
those are you know, those are things, you know, a
really strong brand, those are those are givens to me.
It's all a lot of people put a lot of
emphasis in that, and so they should. But it's behind
the the you know, the curtain that I think people
are more uncomfortable with, and that's understanding that financial backbone
(54:54):
to your business. And but that's really the part that
if you do some things well and sort of you know,
align that and have full visibility of that, it will
really impact your business overnight. That's that's just the reality
of it.
Speaker 2 (55:05):
So I love it. I love it. People need to
contact you? How can they? How can they?
Speaker 3 (55:12):
Yeah? Hundred Consulting Hunter Consulting Service dot com is obviously
my website and you can go to that definitely and
reach out and of course, you know, book a conversation
with me for free obviously, and uh, you know it's
for me just to get to know about you and
your business and what your goals are and and then
I work one on one with my clients. So again
it's all customized to you know your needs and your
(55:33):
goals and what you want to do and understanding that
vision for you, and we partner together to make that
an actual, tangible reality with real tools, real resources, and
real things that you can implement into your business tomorrow.
Speaker 2 (55:46):
Amazing, Jess, thank you so much for taking the time
to come on here and just give so much value,
so much insight free knowledge. I mean, you guys could
just tune into this episode and take so much key
benefit from it and implement these strategies into your practice.
And so I mean I would encourage you guys go
visit her website, go reach out to her. I mean,
(56:06):
we're talking about a gal that has a decade of
experience in medical aesthetics and has an MBA. It's it's
a it's not it's it's rare, like this is not common, right,
and it's she's a weapon. Look, I'm not getting any
reward for saying that. It's just the truth is the truth.
She's worked with lots of practices and knows what to
look for, and so, you know, I really appreciate it
(56:29):
and for the audience, if you guys found this particular
episode valuable, My only ask as you share it.
Speaker 3 (56:36):
That's it.
Speaker 2 (56:36):
There's a colleague, there's a friend, there's a staff member,
there's whatever it is investor. I don't know, but just
share it. That's my biggest ask. I do all this
thing o the kindness in my heart. I ask for
nothing in return, and it's all about giving back to
the community and putting knowledge out there that's going to
help take your practice to the next level. So Jess,
thank you so much for joining. I'll leave it at
(56:57):
that until next time.
Speaker 1 (56:59):
Happy Thanks for tuning in to Medical Millionaire. Every week,
we're here to help you transform your practice into a thriving,
profitable venture, covering everything from marketing and patient bookings to mindset, workflow, automation,
and beyond. Whether you're just starting out, scaling up, optimizing operations,
(57:22):
or planning your exit strategy, this podcast is your go
to resource for success in the medical esthetics industry. It's
time to supercharge your practice and take action today. Share
this episode with a fellow entrepreneur, Rate the show, and
don't forget to click the link in the show notes
to access powerful tools and expert guidance at get dot
(57:44):
growth ninety nine dot com. Slash MM and make sure
to tune into the next episode of Medical Millionaire