Per-Graft Pricing: Why it Benefits the Seller, not the Buyer
Most hair transplant offices structure their fees on a "per graft" basis, quoting potential clients anywhere between $2 to as much as $7 per graft. So as not to scare people away with large dollar numbers, sales reps typically quote prices in a range of grafts—i.e. “we can transplant anywhere between 400 and 2400 grafts at x-dollar per graft”—and let the client’s budget make the decision for them. The goal of this type of pricing is to sell to everyone regardless of their budget.
This is a bad idea because patients don't know the difference between 400 grafts and 2400 grafts. They don't know what a certain # of grafts look like. They don't know what they need.
This is why zone pricing makes things so much easier to figure out. Hairline, top or crown? What do you need?
Monday, April 9, 2012
Tuesday, April 3, 2012
Referral based vs. Advertising based Hair Transplants
Most physicians in the hair restoration field are aggressive advertisers. They recognize that hair transplantation is an elective procedure and they need to attract attention to their services. This is perfectly acceptable behavior in business, including medical businesses such as hair transplantation companies.
Perhaps two of the most notable examples of this marketing approach are Bosley Medical (recently renamed just "Bosley"). This company produces very professional commercials and infomercials that inform people about their services. We make no negative judgment about that approach. It works well for them. We at Samson Hair Restoration have, however, chosen to avoid the expense and limitations of a heavy advertising-based marketing approach in favor of marketing based upon traditional word of mouth or referrals.
We have chosen a referral-based marketing approach. Advertising, and in particular television advertising, is very expensive. The costs of the advertising must be passed on to the clients in the fees those companies charge.
Our marketing approach means lower volume: fewer prospective clients in our offices. However, for those that do come, we can spend much more time with them. We think this permits us to deliver higher quality service to our clients.
Perhaps two of the most notable examples of this marketing approach are Bosley Medical (recently renamed just "Bosley"). This company produces very professional commercials and infomercials that inform people about their services. We make no negative judgment about that approach. It works well for them. We at Samson Hair Restoration have, however, chosen to avoid the expense and limitations of a heavy advertising-based marketing approach in favor of marketing based upon traditional word of mouth or referrals.
We have chosen a referral-based marketing approach. Advertising, and in particular television advertising, is very expensive. The costs of the advertising must be passed on to the clients in the fees those companies charge.
Our marketing approach means lower volume: fewer prospective clients in our offices. However, for those that do come, we can spend much more time with them. We think this permits us to deliver higher quality service to our clients.
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