It’s the easiest, most efficient way to boost your health business Profits; so why are so many companies ignoring a value-based pricing system?
It’s a well known fact that, in health care, we notoriously underprice our products and services. It’s hardly a surprise. After all, we do what we do through a love of helping people. Surely making “too much” money from that is simply unethical?
Traditionally, health businesses will follow a “price per session” or hourly rate method. This transactional approach will end with a 20% profit margin at best.
And sure. 20% is nothing to be sniffed at. But when you’re solving complex, deeply ingrained health problems? It just isn’t sustainable.
The time-based, transactional pricing model isn’t only impacting your health business profits. It’s damaging your patient experience.
Because value goes far beyond the time spent on a single session. Value is about long-term support and transformation. It’s about therapist-patient connection. The culture and environment you create. The ultimate solution you are providing.
Creating a value-based pricing structure will not only result in a more sustainable, thriving business, but it will vastly enhance the experience of both your patients and your therapists.
This will allow for longer, loyal relationships, higher referral rates and a whole new level of customer and staff satisfaction.
What could be better?
The first step is working out the value of your solution and, as a result, the worth of your patient’s outcome.
Once you’ve done - and implemented - this, and your pricing reflects the value you provide to your patients’ lives, you can expect your profit margins to grow to well over 30%.
And when you’ve nailed those figures and begun to reap the rewards, you can decide what to do with that boost in revenue; aka, how you can use it to level-up your health business offering.
The exciting thing about this is that you can use it to directly impact the value you are providing the world. This will determine your position in the marketplace and how you can deliver something truly exceptional to your audience.
Here are the four tools for transformation that I’d recommend:
1. Invest in your therapists
You know their clinical skills are top notch. There’s no denying that. But how about investing in their interpersonal, business and professional sales skills? This will ensure they can take better care of your patients, who - in turn - will take better care of your health business
2. Invest in your health business premises
First impressions count. So you’d better make sure yours is exceptional. You want your patients to feel special from the moment they step into your premises. It’s all about the framing; gorgeous, modern premises work wonders to make someone feel that little bit better.
3. Invest in developing your membership services
Do you want long term, loyal customers that genuinely achieve health transformation thanks to your therapists? Then it’s time for you to develop your membership services. This will vastly boost your profit margin while providing your patients with the highest levels of ongoing care and support.
4. Finally, invest in yourself
Take a holiday. Recharge your batteries.
You deserve a break! Building a thriving health business is no easy feat, and it’s important you take the time to refresh and come back reinvigorated.
Plus, once you’ve invested in the system to develop a repeatable, winning health business, you won’t need to be present every day of the year. Your business will do the work for you.
Ultimately, it’s about looking at your health business as so much more than a clinical service provider. It’s about putting the systems in place so that you have A-star patients coming back over the decades. It’s about - all of us - transforming the health and wellbeing of a nation, one health business at a time.
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