Example 4: Gearing Up
A neighborhood dental clinic owned by three dentists had been in business for 11 years, had enjoyed substantial growth during its first five years in business, but had seen both patient numbers, revenue and profits flatten and then slip backwards since that time.
My research showed that the prior ten years had seen the number of practicing dentists more than triple in the 10-mile radius around my client's location. So, despite any normal effort to improve services, mitigate pricing, or create any typical promotional efforts, the sheer number of competitors in this market was simply smothering my client's efforts to grow.
In discussions with the client, my first recommendation of relocating the clinic to a much less competitive (and more affluent) area 9-miles away was rejected, as all three owners lived within 2 miles of the dental clinic and they simply did not want to relocate the practice.
Working with the clients, I developed another, more aggressive plan, based around a unique improvement in the teeth-cleaning procedure developed and used by one of the partners.
I submitted a new plan that included brand-naming the clinic, erecting a promotional image drawn from the improved teeth-cleaning procedure, designing a corporate graphics and marketing image program highlighting the new brand name, and designing an advertising campaign using local radio and newspapers, and coupled with a series of targeted residential promotional mailings, all to kick off and sustain the new brand image. All of the practice's printing, decor, and signage was renovated to revolve around the new brand name, as well.
The result has been a steady increase in patients, less downward pricing pressure, and a dramatic increase in high margin services, especially teeth-cleaning.
All of the cost of the branding campaign were amortized within 3.5 months following its launch, and the clinic has since gone on to be enjoying a 90% increase in revenue, and a 172% increase in net profits. And, the second clinic, recently opened in my originally suggested alternate location, is already operating at even better numbers than the original clinic operation.
I am now again working with this client to determine the feasibility of franchising the branded clinic program nationally.
