The Trouble With Discounts In Dentistry …

Are you using discounts or free offers to recruit clients to “like” your Facebook Page?  Many businesses are—as well as dental practices.  While offering something such as teeth whitening for free or as a “special offer” may be fine in some instances, it pays to be thoughtful about offering these promotions over the long term.

A “special offer” utilized over and over again will eventually become “not so special” …  My friend, Kevin Rose, is a dental business consultant who explains this risk as “Sofa Sale Dentistry”. Kevin is a thought leader for the business of dentistry.  He is based in England, however his core principles apply in the U.S., as well as internationally.   Read Kevin’s article which he wrote and posted on his blog earlier this year:

Sofa Sale Dentistry

The natural reaction to the traditionally quiet first quarter in Dentistry and retail generally is to have a promotional offer. Right now many dental surgeries are offering promotions in order to attract new and existing patients through the door and this should be a win win for both parties.

However, whilst promotions have their place in the short term, have you stopped to consider what impact they have on your business in the medium and long term? Promotions should form part of an annual marketing strategy and contribute towards the overall direction that the business and patient message is heading.

Promotions inevitably involve reducing margins in the short term, so make sure that you consider what the over all payback will be. Buying market share is a proven strategy outside of dentistry, but it is not sustainable and can reduce business longevity if it is not carefully planned.

There are some companies that constantly market themselves on short term promotions. The TV adverts are full of them at the seasonal peaks such as Christmas and New Year. The “sofa sale” companies are very succesful but only because their pricing and strategy is designed around having a “sale”.

If you are looking to compete in the long term in the style of a “sofa sale” company then maybe that needs to be a conscious decision rather than a short term reaction?

Learn more about Kevin Rose here.