Short Answer: “Not running a sustainable business.”
What does running a sustainable business mean?
It means running your business on a set of values, principles, and guidelines that will keep your business relevant, competitive and profitable today and for years to come.
Why is this more important now than ever?
“The game has changed.”
Years ago, the Professional Esthetics Industry was filled with truly ‘Professional Only’ manufacturers which supported the licensed esthetic professional with training and education and did not sell directly to the clinic’s customers. Those manufacturers would rely on the professional for treatment protocols and retail home prescriptive sales. This is what a truly sustainable business partnership should look like.
Unfortunately, over the years, many manufacturers abandoned the professional business model and are now selling directly to the consumer. This direct-to-consumer business model circumvents the professional by limiting client visits, declining sales revenues and ultimately, stunting growth potential. This is not a sustainable business model for professionals.
“BEWARE of the Wolf in Sheep’s clothing…”
Recognizing the warning signs:
Has your current manufacturer been lulled into direct-to-consumer online sales? Are they selling direct on Amazon or even their own website?
“Some estimates show as much as a 30-40% decrease in potential revenue to the clinics who continue to carry these brands.”
The 3 main reasons why it is not sustainable for a Professional Skin Revision clinic to stock a direct to consumer brand:
- Cheaper online prices with 2-day shipping = missed retail home prescriptives revenue
- Direct online sales do not drive the clients back to the clinic = missed service revenue
- Customers do not look to the professional for their expertise = no longer the trusted advisor
If a Clinic Owner continues to do business with this type of direct-to-consumer manufacturer they (perhaps unwittingly) become an advocate for that manufacturer’s business model of infringing on the financial rewards of the Professionals Credentials; not to mention Hard Work! This is not sustainable for the Professional. One would need to work almost twice as hard to maintain the same level of revenue that could be reached with a “Professional Only” line.
The worst mistake an Esthetician can make comes down to whether the Professional Skin Revision clinic is truly a Professional Clinic or merely a ‘dispenser or marketer’ for the manufacturer. For those that align with the former, you owe it to yourself, your employees, your business partners, and your futures to identify and align with the true professional brands. These are the unwavering industry leaders who value, support and train Professional Skin Revision Clinics– the Backbone of our Industry.
So, ask yourself two questions (and promise to answer honestly):
“Do I truly want to be a Professional Skin Revision Clinic?” If your answer is, “yes,” ask yourself, “am I running a sustainable business supported by a true ‘Professional Only’ brand?”
VP, Education & Sales for DMK – Drew Coleman
Drew Coleman is the Vice President of Education & Sales for DMK International. His professional passion is to help business owners maximize their potential by benchmarking and identifying growth opportunities. His 17-year career has been dedicated to helping businesses grow and loves the esthetics industry because of the passionate business owners he works with every day.
DMK Concept – Remove, Rebuild, Protect, Maintain
DMK believes that the origin of most skin conditions is a result of disharmony within the skin. Using the principles of biochemistry, DMK has formulated a range of treatments and products designed to educate skin to perform like youthful healthy skin. By matching formulations with the body’s chemistry, the skin is encouraged to respond in a positive manner. DMK’s revolutionary concept of REMOVE, REBUILD, PROTECT, MAINTAIN aims to match an individual’s biochemistry with the appropriate skin therapy.