by Honora Lee Wolfe

Our general manager, Bruce, asked me to write up part #4 of this series on marketing prior to my departure for India. So while I’m continent-hopping, you can read my thoughts on this very sensitive subject…how to price your services.

I have stated in print that I am, fundamentally, in support of the Community Acupuncture movement in the US, mostly because it brings the benefits acupuncture to a larger group of patients who might otherwise not try it because of financial constraints. That is a worthy goal. (I have heard rumors about something of which I don’t approve if it is true; paying practitioners shamefully low wages to work at such clinics. I hope this is the rare exception to the rule!)

All that being said, some practitioners in the same towns where these clinics exist are saying to me, “We’re getting killed on price by new, young practitioners who are offering lower priced services at community acupuncture clinics. How do we attract patients to our clinics when we charge, in some cases, twice as much per treatment?”

I don’t believe that you necessarily need to lower treatment prices to compete. Consider that not everyone is purchasing the least expensive cars or houses or anything else…even in this economic climate. Most important to remember is that people don’t always or even usually choose health care based on price. These choices are based on trust, results, reputation, and referral. If you look at long-established practitioners, they will tell you that they don’t necessarily lose patients by raising their rates…often just the opposite. Still, it remains tough times for many and almost everyone is looking for ways to save money. Thus, this post is a discussion of pricing, discounts, packages, and all that jazz.

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First of all, studies done on almost any type of product show that people do not usually go for whatever is the cheapest; they go for what feels like the least risk. The example often used is Coca-Cola, which outsells Brand X Colas by 10-to-1 every time, despite being double or more in price. Why? Because people know how it will taste…the same today, tomorrow, next year, every time. That is to say, there is no risk other than an extra buck or two.
Now, acupuncturists have some hurdles to clear when it comes to lowering people’s sense of risk! Many people are needle averse; many people don’t like things that are foreign; most Westerners are used to a one-visit-to-the-doctor-and-I-can-just-take-a-pill model of medicine. So how do you lower people’s risk?

1. First, by doing the best professional work that you can do, day in and day out, every time.
2. Second, as I said in Part #3 of this series, by treating every patient as if they were the only person on the planet for the entire time that you are with them. (See part #3 of this series.)
3. Third, by participating in your community in every way that is natural for you. This shows that you are a regular person, not a weirdo, no horns growing anywhere. And, people like to buy products and services from those they know and trust. So coach a kids’ soccer team, join the July 4th Celebration steering committee, get on the hospital foundation planning commission…you get the idea. It’s good for your practice and it’s good for your community!
4. Fourth, by running your office like a well-oiled but human and humane operation. Don’t keep people waiting; don’t lose paperwork; don’t leave dust in the corners or water splashes on the bathroom mirrors; keep your signage and website fresh and up to date; polish your shoes; show up early every day.
5. Fifth, by making sure your patients know you want and appreciate their referrals. Consider putting a short statement on the back of your card and on a sign at least one place in your office that says something like “The greatest compliment you can give me is the referral of your friends and colleagues. Thank you for your business.”

Then, charge what you need to charge to live your life both with integrity and with fairness to yourself and to your patients.
What about discounts?

You need not discount your treatments unless you want to. That being said, I have spoken to many practitioners this year and some have offered various package deals and discounts to their patients to keep them coming in regularly and for their therapy to be effective.

1. One practitioner I know charges her patients $125 per week flat fee and they can come in for as many treatments as they want. Her experience is that most will do three treatments. While her price is normally $75 a visit, she is still making money, keeping her patients happy, patients get the treatments they need, and she feels she is doing her part to help with current economic concerns.
2. Another practitioner gives a 25% discount if a regular patient asks her for one or if she knows someone has lost a job. She actually has called all her regular patients and asked them how they are doing and if everyone in their family still have jobs or if they are struggling financially. If they tell her that their situation has been compromised, she offers a discount or a package deal.
3. Another practitioner who largely does herbal medicine arranged with his suppliers to purchase product in larger amounts for a better price. He then cut his margin on all herbs and other items he sells to patients by almost half. He has used this as a marketing position…that he has quality products for much less than any other clinic in town. He makes less per sale, but has lost fewer patients.
4. Another practitioner’s response was to create a one-day per week stress reduction clinic for $25 per 30-minute visit, no appointment necessary. Many patients who were using his services for health maintenance in any case have responded to this option and that day of the week is very busy. As he has three treatment rooms, he can cycle lots of patients through with simple treatment protocols.
5. Yet another practitioner changed her schedule to three 12-hour-days per week and brought in another practitioner for the other days and teaches a few dance classes per week to augment her income. This also gives her less commuting time and gasoline expense, as well as another person to share the rent and sell products from her clinic. She did not discount her rates and says she has lost perhaps 10% of her clients over the last year, with another 10% coming in a little less frequently for about a 15% loss in business, which she made up for by her cost-cutting measures instead of lowering her fees.

About packages. In some states, notably Colorado, the Dept. of Regulatory Agencies under which we practice actually likes us to offer package deals because it saves patients money. The only caveat is that if someone quits in the middle for any reason, they must be able to get the remaining portion of their money returned. I suggest you find out if this is legal in your state (or, if you are more of an anarchist, offer them until someone tells you that you cannot). This gives your patients a better price and gives you some stability in your income if you can convince patients to buy their care ten treatments at a time.

Finally, remember that every time we spend money on anything (yes, even food) it is due to a complex set of hopes, fears, needs, and wants. If you can make sure that your patients perceive clear value from your services, what and how you charge for those services may be quite secondary in their decision making process, as long as it is not clearly outrageous. See my last blog, Part #3, about making sure you are, in fact, offering value to your patients in every possible way that you can.

Hope this gives you some ideas for working with the money dragon. Got other ideas? Please send them to me as I love to hear how creative people do what needs to be done for success in their lives. I’ll be back at Blue Poppy Jan 18th. Stay well and safe and have a wonderful and prosperous 2010.