How To Recession-Proof Your Botox Business
According to a March 14, 2008 Reuters article titled “Recession may mean less frequent Botox shots” the recession in the United States could adversely affect the Botox treatment sales of American cosmetic clinics and spas.
Unlike other pharmaceutical products, Botox injections, when used for cosmetic purposes, are paid for directly by consumers out of their own pocket (i.e. not covered by insurance). This fact makes Botox sales even more vulnerable to an economic downturn than other pharmaceuticals. Since Botox continues to be one of the largest profit-producing procedures for the majority of cosmetic businesses this could mean serious problems for these businesses.
From the beginning of February 2008 to the middle of March 2008, shares in Allergan Inc, the maker of Botox, have taken a hit of nearly 20% due to concerns that the aesthetics market is slowing.
Although Botox consumers may not completely abandon their Botox treatments there is a serious concern that they may drastically reduce the frequency in which they get Botox injections. The degree to which consumers abandon or reduce the frequency of their Botox treatments will depend on the severity of the impending U.S. recession. The more severe the upcoming recession, the more detrimental will be the effects on the bottom line of U.S. cosmetic clinics and medical spas.
Allergan’s Chief Executive Officer David Pyott believes that the average interval between Botox injections, which has declined to around 5 and 1/2 months from 6 to7 months, may now creep back up to the 6 to 7 months range. As you can imagine, this longer time interval between Botox treatments, would mean fewer patient visits to cosmetic clinics and spas for Botox injections. Fewer visits means fewer fees collected.
So, how can you protect your business and recession-proof your Botox sales?
First of all, it is important to recognize that as soon as consumers hear the word “recession” they become increasing price-sensitive. It is a well established fact, that in times of recession, consumers become extremely price conscious and luxury items are the first of the “extras” to be cut from the discretionary spending budget. Also, in times of recession, the discretionary spending budget of the majority of Americans will all but disappear. Even affluent shoppers become budget-conscious during these hard times.
Botox treatments and other cosmetic procedures are most likely classified as luxury items for all but the most affluent of Americans. This means the longer and more pronounce the recession the more likely Botox sales will be affected.
However, if you were able to lower the price that you charge your patients for their Botox treatments enough, they may actually be able to afford to maintain their current treatment schedule. But how do you lower your Botox treatment prices without adversely affecting your bottom line? The answer is to lower your cost for purchasing Botox.
Unfortunately, the general rule with Botox wholesale pricing is that you must increase your purchasing volume of Botox in order to significantly decrease the price that you pay per vial. Essentially, during a recession, that is impossible. How can you increase your Botox purchasing volumes if your customers are going to be having fewer treatments? And, are the volume discounts offered by the manufacturer or wholesaler going to be the same if their profits are lower due to a recession?
Well, there is one way that you can immediately start buying Botox for a much lower price than you are paying now. The ability to buy Botox for less is something that can help your business whether there is a recession or not.
Brand name Botox is now available to you at significantly reduced prices. You can now buy Botox for as low as $380 per vial. That is $150 less per vial than the average U.S. wholesale price of $530 per vial.
Click the following link to buy Botox injections online or call 1-877-333-0128 today for more information.
By purchasing your Botox at these prices you can afford to offer Botox treatment discounts to your clients and still make significant profits. That is the easiest way for any cosmetic clinic or spa to recession-proof their Botox business.