Speaker 1: This is Medical Millionaire, the podcast helping your metspot increase
Speaker 1: in status, visibility, and profitability. Join your host as he
Speaker 1: dispels mis shares trends, and gives you actionable steps today
Speaker 1: that will take your medical practice to the next level.
Speaker 1: Here's your host, expert marketer and founder of Growth ninety nine,
Speaker 1: Cameron Hemphill.
Speaker 2: Hey, what's up everybody. Cameron Hemppill here your host for
Speaker 2: Medical Millionaire. Hey, guys, thank you so much for taking
Speaker 2: the time to tune into the podcast. Our goal is
Speaker 2: to give incredible value and insight for practice owners. So,
Speaker 2: if you own a practice medical stus practice, or you
Speaker 2: are thinking about getting in the industry or this specialty,
Speaker 2: this podcast and all these episodes we make, they're one
Speaker 2: hundred percent designed for you and to help you take
Speaker 2: your practice to the next level. Guys, I have a
Speaker 2: good friend today. We've known each other for a few years.
Speaker 2: We've been on panels together. I feel like I run
Speaker 2: into this guy like every conference I go to. He's
Speaker 2: deep in the weeds of what's going on in the
Speaker 2: world of aesthetics. He owns a group called the Skyte
Speaker 2: Group out of Dallas. His name is Ben Hernandez, he
Speaker 2: is very well, let's just call it in the tune
Speaker 2: of what's happening in the private equity side of things,
Speaker 2: the buy side of things, the consulting side of things. Ben,
Speaker 2: I don't know how many practices that you have touched
Speaker 2: and consulted at this point and transacted. But man, it's
Speaker 2: so good to have you back on the show. Welcome
Speaker 2: to the podcast, Cameron.
Speaker 3: Thank you so much for having me back. And yeah,
Speaker 3: we were just talking. It's been about a year, so
Speaker 3: happy to be back. Appreciate it. And yeah, definitely enjoy
Speaker 3: seeing you at all the conferences and learning from you
Speaker 3: as well every time I go there.
Speaker 2: Absolutely, Man, I appreciate it. I just saw you recently
Speaker 2: at GAC in Miami. Shoot before that was like a
Speaker 2: weekend before when let's see we were at face at
Speaker 2: Live Gretchen's conference, and then before that it was a
Speaker 2: symposium that Scott Callahan puts on. So I've seen you
Speaker 2: a lot. I know that we live across the country
Speaker 2: from one another, but it's nice to have you back.
Speaker 2: So just for the audience, can you just give us
Speaker 2: a quick update. What is Skytel Group? What is it
Speaker 2: that you guys do over there? And then you know,
Speaker 2: you guys. He has a report that they came out
Speaker 2: with with a company called q Sites and it's an
Speaker 2: incredible report that we will get into. And that's really
Speaker 2: the purpose of this episode. It's like what's going on
Speaker 2: in the world of aesthetics. But before we go there,
Speaker 2: ben just for the audience, like, give us a recap,
Speaker 2: background history update. I know that a lot of people
Speaker 2: that are tuning in know whose Skytel Group is and
Speaker 2: who you are and what you do, but there's definitely
Speaker 2: some people that do not, so we just give us
Speaker 2: a quick update.
Speaker 3: Of course, yeah for those of us who don't know Skytail.
Speaker 4: We do three things. On one hand, we do management.
Speaker 3: Consulting where we take to true strategy and we typically
Speaker 3: work with one of two type of clients. One or
Speaker 3: typically found our own businesses that either have large practices
Speaker 3: or multi site organizations that are wanting to grow in scale.
Speaker 3: The other one is financial sponsors such as private equity.
Speaker 3: We help at times with their portfolio companies to deal
Speaker 3: with very specific opportunities that they're seeing or issues that
Speaker 3: they're having. The second side of the businesses investment banking.
Speaker 3: Most of our business there is we take companies typically
Speaker 3: founder owned and we sell them to either private equity
Speaker 3: or the platforms the strategics, and then finally we have
Speaker 3: a smaller private capital side where we invest in either
Speaker 3: our clients or the spaces in which we play. And yeah,
Speaker 3: as you said, Cam, we were very excited to put
Speaker 3: out a white paper because, as you know, there have
Speaker 3: been so many new entrants into the space and one
Speaker 3: thing that we consistently saw is just a thirst for data.
Speaker 3: And I know you have a lot of it as well,
Speaker 3: and we talk about it a lot. So this will
Speaker 3: be a lot of fun.
Speaker 2: Yeah, absolutely, And the last channel of that to the
Speaker 2: business that you guys are now working in. That's the
Speaker 2: new A side, right it is.
Speaker 3: It was propped up in March of twenty four, so,
Speaker 3: you know, eight months ago or so. And we did
Speaker 3: it because some of our early consulting clients would ask,
Speaker 3: you know, would you ever take the risk alongside us?
Speaker 3: So with the advice that you're giving, and you know,
Speaker 3: back then we had like one or two acorns on
Speaker 3: our balance sheets, so there was zero capital to deploy.
Speaker 3: But that's what got the wheels turning. So it's been
Speaker 3: a really exciting piece of the business.
Speaker 2: I love it. I love it. I think it's definitely needed.
Speaker 2: And just to kind of break this down for you guys.
Speaker 2: So the consulting side, and Ben, you can, you can
Speaker 2: stop me anywhere, but what I want to do is
Speaker 2: explain it in more of an understanding approach for the audience.
Speaker 2: So the consulting side of the business the way I
Speaker 2: understand it is a practice will come to you guys
Speaker 2: and say, you know what, I am interested in potentially
Speaker 2: exiting my practice, whether that's soon later, how can you
Speaker 2: put me in position to trade at the highest value.
Speaker 2: And then of course I'm sure you guys have expertise
Speaker 2: internally that can help guide them along that journey. Is
Speaker 2: that is that right?
Speaker 4: That's correct?
Speaker 3: And you know we're generally agnostic oftentimes that is why
Speaker 3: folks come in, which is, you know, show me how
Speaker 3: to turn my b's into a's and my season to v's,
Speaker 3: if you will.
Speaker 4: But we're agnostic.
Speaker 3: You know, someone could come to us and say I
Speaker 3: want to give my organization out to my child down
Speaker 3: the road. We take a similar approach, which is really
Speaker 3: solving for any opportunities to make the business more valuable,
Speaker 3: whether it's to yourself or to the potential partner or buyer,
Speaker 3: whichever it may be. We take a pretty similar approach.
Speaker 2: I like it, and I mean basically what I hear
Speaker 2: from that is, hey, we'll take your current infrastructure, see
Speaker 2: where you are at on a grade, whatever that grade is,
Speaker 2: and we're going to fine tune it to increase that grade, right,
Speaker 2: which ultimately is going to make the practice run more efficiently, effectively,
Speaker 2: make it more profitable, more attractive for whoever you're going
Speaker 2: to hand it to sell it to whenever. That may
Speaker 2: be pretty cool exercise. And then you know what's interesting, guys,
Speaker 2: is coming out of that it makes total sense. I'm
Speaker 2: sure a ton of practices were like, hey, can you
Speaker 2: also help deploy some capital to put us in position
Speaker 2: to grow based upon whatever area that makes sense to
Speaker 2: deploy capital. And so i'd assume you guys would go
Speaker 2: through some sort of underwriting diligence process and at some
Speaker 2: point I'm sure it's made sense to participate and partner,
Speaker 2: which I think is amazing. And I'm sure that you
Speaker 2: know these practice owners are super thankful for having the opportunity.
Speaker 3: Yeah, and that one is a really mutually beneficial one.
Speaker 3: I mean, as you said, we we do the diligence
Speaker 3: side of things, which we typically do anyhow as we're
Speaker 3: running consulting, but you know, from a diligence perspective, make
Speaker 3: sure that it's an investment that we think we'll get
Speaker 3: a good return for our limited partners. And then the
Speaker 3: beauty of it is then we become true partners and
Speaker 3: we work together on you know, maximizing that practice as
Speaker 3: efficiency and hopefully down the road if they're ever ready
Speaker 3: to go to market, getting a nice return on that.
Speaker 3: So it's a really fun process and it brings you
Speaker 3: really close to your partners as well.
Speaker 2: That's amazing. I like it. It's going to be interesting
Speaker 2: to see. I know that it's you know, March. I'm
Speaker 2: sure that's moved super fast from you know, we're recording
Speaker 2: this in November twenty four. From March to twenty four
Speaker 2: to November twenty four, I mean, not not a huge time,
Speaker 2: but it'll be interesting to see, like in the next
Speaker 2: twenty four months what happens there. So dude, let's definitely
Speaker 2: stay in touch and remember these conversations so we can
Speaker 2: you know, go back on them and listen and then
Speaker 2: see where things are in the future.
Speaker 4: I would love that.
Speaker 3: Yeah, hopefully by then cam where we're raising fun too,
Speaker 3: and we can look back on.
Speaker 4: Some success here on our first one.
Speaker 2: You'll be looking back and saying, hey, do you guys
Speaker 2: remember fun one a long time ago? All right, so
Speaker 2: let's get into the meet. So this q site First off?
Speaker 2: Who is q site?
Speaker 3: Q site is a guidepoint company with which is basically
Speaker 3: a large firm that is very, very data driven, so
Speaker 3: they have all the data that you would ever want
Speaker 3: within various sub sectors, and q site is the metasthetic
Speaker 3: side of it. And you know, we, I think it
Speaker 3: was July of twenty three, we sat down for lunch
Speaker 3: and had this idea of wouldn't it be great to
Speaker 3: put out a really extensive white paper because all of us,
Speaker 3: as you know, are getting calls from financial sponsors as
Speaker 3: well as practice owners themselves wondering, you know, what is
Speaker 3: the true data out there? And there wasn't a lot
Speaker 3: out there at the time. I mean, you could get
Speaker 3: things from different places, don't get me wrong, but we
Speaker 3: wanted to come out with something really comprehensive. And the
Speaker 3: thought was q site, you have all this amazing data,
Speaker 3: Skytail has the industry knowledge, you know, kind of boots
Speaker 3: on the ground that can translate that data, ideally into English,
Speaker 3: and that's where we had the thought and we've spent
Speaker 3: you know, the past half year so really trying to
Speaker 3: refine it as best we could.
Speaker 2: I'm glad you guys did it, and you know, I
Speaker 2: know that amspot came out with a recent report. I'm
Speaker 2: glad you guys did just a quick insight for the audience.
Speaker 2: I don't talk about growth and nine a ton on
Speaker 2: the podcast, but we have. We're releasing a benchmark report
Speaker 2: that we will be pushing out there. I think that's
Speaker 2: actually going to come out maybe in the next thirty days,
Speaker 2: something that we've been working on as well. To your point, man,
Speaker 2: it's like the industry is craving data and it's interesting
Speaker 2: that you know, you guys have obviously that's been in
Speaker 2: your ear and you guys took initiative and pushed that
Speaker 2: out right. So we're going to go through this report together.
Speaker 2: And I've spent the time digesting it obviously, I know
Speaker 2: that you've probably been through it a lot as well,
Speaker 2: probably more than you'd like, but I appreciate you taking
Speaker 2: the time because it's it's extremely valuable, guys. So we're
Speaker 2: going to get into the mean of this. I think
Speaker 2: that if you're turning in, you know, make sure to
Speaker 2: pay attention because there is some interesting stuff that has
Speaker 2: happened in the aesthetic space. Right, So, what are patients spending?
Speaker 2: How many practices are opening? Like really, like what are
Speaker 2: what is the industry spending their money on when it
Speaker 2: comes to services and treatments? Like to the dollar amount
Speaker 2: from q site and skytell that put out this report, right, like,
Speaker 2: there's a lot like what is happening in weight loss?
Speaker 2: What is happening in private equity? Because I know that
Speaker 2: there's a lot of talk about it, but now we
Speaker 2: have some really cool meat and data behind it. So
Speaker 2: that being said, let's let's talk about it. There's there's
Speaker 2: a couple interesting points that I wanted to point out here, Ben,
Speaker 2: And the first one was non surgical patient spend that
Speaker 2: that I saw on the report was estimated to be
Speaker 2: right around fifteen billion in twenty twenty three, and that's
Speaker 2: up four percent from the previous year, right, which which
Speaker 2: is it just shows that like, oh my gosh, like
Speaker 2: it continues to grow, Like four percent of fifteen billion
Speaker 2: is a lot of cash. So talk to us a
Speaker 2: little bit about that. I mean, because I know that
Speaker 2: you guys have been at this, like you know, for years,
Speaker 2: and as you can, you continue to see demand from
Speaker 2: the consumer side outpaced supply.
Speaker 4: Correct.
Speaker 3: Yeah, you know, this stat was interesting to us for
Speaker 3: a few reasons. One, I think there's a chart in
Speaker 3: there where if you look at twenty seventeen and you
Speaker 3: go to twenty twenty four, this market has doubled in
Speaker 3: size in that amount of time. So, I mean, that's phenomenal.
Speaker 3: In twenty seventeen, I see have this up period seven
Speaker 3: point four billion, twenty three, fifteen billion, and that short
Speaker 3: time for an entire market to double is just phenomenal
Speaker 3: and just speaks to the growth.
Speaker 4: I think.
Speaker 3: The other thing is, you know, we oftentimes see reports
Speaker 3: that point to the KAGER, which is basically just compounded
Speaker 3: annual growth rate of closer to ten to twelve percent
Speaker 3: over the next decade. So the four percent, while not
Speaker 3: great compared to that number, it's actually very positive from
Speaker 3: our perspective because if you think about what twenty three
Speaker 3: was high inflationary environment, we were just coming out of,
Speaker 3: or in the middle of, potentially a mini recession. You know,
Speaker 3: we knew we had the presidential election coming up. These
Speaker 3: are all things that, from a consumer confidence perspective, make
Speaker 3: people nervous. So for it to still grow four percent
Speaker 3: is tremendous. I know, you and I talk sometimes about
Speaker 3: other healthcare sub sectors, like in Dentnel it grows three
Speaker 3: three and a half percent a year, and that's a
Speaker 3: good year. So if you put that into perspective, you're
Speaker 3: exactly right.
Speaker 4: Cam.
Speaker 3: It just really speaks to the dynamic space that we're
Speaker 3: in right now.
Speaker 2: Yeah, I agree, And that's that's why I wanted to
Speaker 2: call that one out because to your point, like, yeah, Dentell,
Speaker 2: you know it's it's like three percent good year, you know,
Speaker 2: but four percent in a very let's call it an
Speaker 2: very interesting world in dynamic you know, to see it
Speaker 2: grow at that pace is amazing. And really like from
Speaker 2: twenty seventeen to twenty twenty three doubling you know, seven
Speaker 2: point four billion to fifteen billion in that short period
Speaker 2: is I mean, that's just a different world. In fact,
Speaker 2: I got into the industry late twenty sixteen, so oh wow,
Speaker 2: I like saw that just continuous surge, which has been crazy.
Speaker 2: I mean, so many practices have opened up, I've met
Speaker 2: so many incredible people. And you know, unfortunately I've seen
Speaker 2: practices close too, right, Like that's that's a real thing too.
Speaker 4: Yeah, a lot of competition out there. I know you
Speaker 4: mentioned earlier on the new men's spas that opened in
Speaker 4: twenty three and that number was I think seventeen percent.
Speaker 4: And and you can dissect a lot from that figure.
Speaker 3: I mean, when you have seventeen percent new med spas,
Speaker 3: if you think about what that points to CAM, it's
Speaker 3: exactly what you said. You see some that are failing.
Speaker 3: It's increased competition. It also, you know, we have a
Speaker 3: provider shortage. There's more demand for services than we have providers,
Speaker 3: and so you actually have providers that are leaving existing
Speaker 3: practices to open up new med spas. And that was
Speaker 3: a big reason for that four percent growth that you're mentioning.
Speaker 3: So there's a lot to dissect there. You're exactly right, Yeah.
Speaker 2: I mean, seventeen percent growth last year in new medical
Speaker 2: SETUS practices, that's it. That's an outstanding number, especially in
Speaker 2: like given the type of environment that we're going through. Dui,
Speaker 2: it's bananas. I mean, it's it's incredible. I don't know
Speaker 2: what it's going to be for twenty twenty four. I mean,
Speaker 2: we're consistently getting hit up by practices that are still opening.
Speaker 2: I don't know if you have any forecasts on what
Speaker 2: twenty four looks like, but I know that AMSPA was
Speaker 2: projected to see like a ten to twelve percent growth rate.
Speaker 2: I'm not sure if you guys have saw the same thing.
Speaker 3: Yeah, we're expecting something similar as well this coming year,
Speaker 3: and I think Q one and two of twenty four
Speaker 3: we were continuing to see that uptick. And you know,
Speaker 3: that's both great, but it also presents challenges to existing practices.
Speaker 3: Like from a growth perspective, the new practices were the
Speaker 3: ones that really helped fuel that four percent overall market
Speaker 3: growth you mentioned, and above a certain revenue level, what
Speaker 3: we saw in twenty three v. Twenty two is actually
Speaker 3: declining revenues for the larger practices. So, you know, it's
Speaker 3: kind of a mixed bag, but it's certainly something that
Speaker 3: you know, if I'm an existing practice owner, I start thinking, Okay,
Speaker 3: how do I protect myself against this?
Speaker 4: You know, is that you know, marketing obviously is a
Speaker 4: big one.
Speaker 3: Making sure that I have really good training, making sure
Speaker 3: that my patients trust my brand, not a specific provider
Speaker 3: as much as you can anyway. But there are a
Speaker 3: lot of things I think that you can take action
Speaker 3: on with this data of you know, how do I
Speaker 3: retain my providers as well? So yeah, some pretty neat
Speaker 3: things I think that you can do with it.
Speaker 2: Yeah, retaining your providers is key, you know, Like I've
Speaker 2: seen lots of practices where providers will will jump, they'll
Speaker 2: want to go open up their own their own practice,
Speaker 2: or just go to another environment. Maybe it's a compensation thing,
Speaker 2: a personality thing. I'm not sure, you know, that's like,
Speaker 2: retaining providers is like more important than, like, if you
Speaker 2: look at the data, more important than retaining your patients.
Speaker 2: Not saying that retaining your patients isn't important, right, but
Speaker 2: they are very important to keep in revenue and growth
Speaker 2: and market share you want it to be. One of
Speaker 2: the interesting things too that we were seeing, and this
Speaker 2: kind of goes with the report, was the marketing, right,
Speaker 2: So as competition goes up, as you see this seventeen
Speaker 2: percent growth and we're projecting to see it, you know,
Speaker 2: let's just call it, let's call it ten to thirteen
Speaker 2: to fourteen percent growth in twenty four for example, and
Speaker 2: I think twenty four could actually is even more of
Speaker 2: an interesting year than twenty three, given the fact that
Speaker 2: this is the election year and agree a lot of
Speaker 2: uncertainty that that was taking place, and in fact, for
Speaker 2: our business, we saw like like demand from online search
Speaker 2: drop like install pretty significantly mid October, like November tenth,
Speaker 2: and then it went back up.
Speaker 4: Oh yeah, I think waiting for the election to be over.
Speaker 3: And then you know where we are bullish is, you know,
Speaker 3: from an inflation perspective, the fifty bit rate cut should
Speaker 3: help with consumer confidence.
Speaker 4: Hopefully we're seeing that in twenty five.
Speaker 3: But I agree with you, I think twenty four is
Speaker 3: going to look like a wonky mixed bag.
Speaker 4: But you know, Q four I.
Speaker 3: Think will be pretty positive from a number's perspective, and
Speaker 3: then heading into twenty five, that could be an exciting year.
Speaker 2: I think I'm bullish on twenty five. You know, I'm
Speaker 2: bullish obviously in this industry and it being so so
Speaker 2: strong when it comes to recession. You know, there's some
Speaker 2: interesting data in the report that I'll call out there,
Speaker 2: but you know, just like really the patient loyalty speaks
Speaker 2: volume of wanting to get services and treatments done. By providers,
Speaker 2: you know, at their practices and they they want to
Speaker 2: invest in confidence, they want to invest in feeling good
Speaker 2: and looking good, and you know, we'll get into that.
Speaker 2: But in fact, it was there was somewhere in the report.
Speaker 2: I'll need to go in and find it, but it
Speaker 2: was talking about the recession, like how households are wanting
Speaker 2: to invest more in getting treatments done than purchasing household items.
Speaker 3: Yeah, it's fascinating and there have been a few reports
Speaker 3: out on this that for whatever reason, medical aesthetics is
Speaker 3: very recession resistant and that's a beautiful thing for our space.
Speaker 3: And once people get in it, they don't typically stop services.
Speaker 4: It's actually very rare.
Speaker 3: Even as consumer confidence goes down, it's one of the
Speaker 3: services that people will cut last. And there have been
Speaker 3: a few questions as to why it's a non essential service.
Speaker 3: And one of the psychological reasons, according to a few
Speaker 3: reports anyway, is due to when you don't feel very
Speaker 3: good about the environment you're in, investing in oneself is
Speaker 3: actually something that psychologically people tend to do, whether it's
Speaker 3: you know, working out or reading a lot or metaesthetics.
Speaker 3: In this case, that's something that people will invest in
Speaker 3: But yeah, you're exactly right.
Speaker 4: I think that's a fascinating statistic.
Speaker 2: I can't remember where it was in the report. I'm
Speaker 2: trying to find it now, Ben, but I was reading
Speaker 2: on it earlier. I think it's like in the first
Speaker 2: few pages twenty seven, I think is it page twenty seven.
Speaker 2: Let's go to go the really quick Okay, scrolls pretty quickly.
Speaker 3: It says here, studies have shown patients would prioritize treatment
Speaker 3: before household expenses if they have treatment. Yeah, so it's
Speaker 3: one of those things like Exerto expensive, won't buy that,
Speaker 3: but I'll continue to get my neurotoxins.
Speaker 2: You know what's interesting is that's what my gut told
Speaker 2: me too, Like just been talking to with my wife
Speaker 2: and her friends, like, you know, like she's the ideal candidate.
Speaker 2: She's the ideal patient for a practice owner that's going
Speaker 2: to continue to.
Speaker 4: Go and can.
Speaker 2: I'm just like, okay, like I can see why. You know,
Speaker 2: let's not call it full recession proof. Like I know
Speaker 2: that patients like they slow down, maybe they skip a
Speaker 2: visit or whatever. But I mean to back this up
Speaker 2: with data and look at it and say, okay, cool,
Speaker 2: Like yeah, maybe we could slow down on our grocery
Speaker 2: bill because I still have to go get treatments and
Speaker 2: services done.
Speaker 4: It's fascinating.
Speaker 3: Once you start, it's proven that it's pretty difficult to stop.
Speaker 3: I mean, it works, people see the results, and unlike
Speaker 3: other healthcare, it's one of the few that people go
Speaker 3: in excited to actually go and they leave happy and
Speaker 3: it's a good experience. So yeah, it's a fascinating statistic.
Speaker 4: I agree.
Speaker 2: Yeah, And that's a good point.
Speaker 4: You know.
Speaker 2: It's like I hate going to the doctor hospitals. Doctors
Speaker 2: don't like to do it. I think that's pretty common
Speaker 2: for most men. I'm a patient. I go to medical
Speaker 2: aesthetics practices and I have a great time and I
Speaker 2: leave there feeling great, and so I can speak to
Speaker 2: that too, you know, and there it is backed up
Speaker 2: by data, like I think, like when you compound that
Speaker 2: too with the weight loss, like you know, feeling good
Speaker 2: and then looking good inside outside type like two way punch,
Speaker 2: it's hard to hard to miss, you know, really going
Speaker 2: to one of your services and treatment appointments.
Speaker 3: Yeah, and weight loss was another interesting one, wasn't it.
Speaker 3: Like The category grew to one point two billion and
Speaker 3: twenty three, which I think it was zero point three
Speaker 3: billion and twenty two and it was I think the
Speaker 3: stat was like two hundred and thirty six percent increase, right,
Speaker 3: So it's phenomenal. So already you're baselining benchmarking against that.
Speaker 3: And what we did is we refreshed Q one and
Speaker 3: Q two as well, CAM and I think it grew
Speaker 3: like eighty five percent Q one, Q two twenty four v.
Speaker 3: Twenty three, So like it just continues to grow. So
Speaker 3: if you think about what that does, there's a stat
Speaker 3: in here as well. I think that a lot of
Speaker 3: these patients too, if you talk about expanding a market,
Speaker 3: a lot of these patients that come in from weight
Speaker 3: loss were not originally medical esthetic patients. So what you're
Speaker 3: doing is you're getting a brand new patient based brand
Speaker 3: new demographic. And there's another sat in here, I think,
Speaker 3: and I forget what the exact number is, but of
Speaker 3: those that come in that we're not a lot of
Speaker 3: them end up adopting broader medical esthetic services. So you
Speaker 3: think what weight loss has done, it's been quite fascinating.
Speaker 3: It's opened up the market, it's added another ancillary services
Speaker 3: under the medical esthetics arm and the growth is just phenomenal.
Speaker 2: It's exploded. It's exploded. Now, I agree. I think that's
Speaker 2: that's a really good point. I think, you know, like
Speaker 2: this whole talk of semi glue tie GLP one, like
Speaker 2: you see the ads everywhere, hymns like I mean shoots,
Speaker 2: it's all over and you know what, like it works
Speaker 2: and people are getting benefits and results and so you
Speaker 2: know you've seen the surge. Now they go into a facility,
Speaker 2: they go into a practice and if that provider is
Speaker 2: doing what they're supposed to do, educating that patient on
Speaker 2: all the other treatment services benefits that they can do
Speaker 2: on the surface of the skin, right Like, It's just
Speaker 2: it's opening up the world for education to learn more
Speaker 2: about the benefits of aesthetics, which is interesting. So that
Speaker 2: makes total sense to me.
Speaker 4: Yeah, that's a great point on the education piece. I
Speaker 4: know a lot of our.
Speaker 3: Clients bring that up of how do you do that
Speaker 3: without feeling salesy, And to me, it's all about treatment planning,
Speaker 3: right Like it would be as well.
Speaker 4: Cam, I think you like to work out a lot.
Speaker 3: It'd be as if you were my trainer and I'm like,
Speaker 3: I only want you to work on my biceps. I
Speaker 3: think your responsibility to me would be to say, that's great,
Speaker 3: we'll do that as well. But here, here are the
Speaker 3: other things from a totality perspective, and it really does
Speaker 3: allow you to Okay, great, now that you're doing this,
Speaker 3: it opens the door for things like, you know, because
Speaker 3: you've heard nozempic face.
Speaker 4: Or butt or whatever.
Speaker 3: It allows you to talk about, okay, maybe dermal fillers, biostimulators,
Speaker 3: some of these other things. And by the way, as
Speaker 3: people start looking better, they start feeling better, they see
Speaker 3: the results, that's a perfect time for them to invest
Speaker 3: more money into other services that ultimately they probably want.
Speaker 4: If you're treatment planning.
Speaker 2: Totally, you know, and I think like there is like
Speaker 2: even though that demand is outpacing supply when it comes
Speaker 2: to customer again, guys, customer demand based upon provider count,
Speaker 2: it's out pacing now, and I truly think that the
Speaker 2: consumer is This would be an interesting data point. I
Speaker 2: don't know if it's in this report or not, but
Speaker 2: it'll come out eventually. Like what of the total US
Speaker 2: population based upon like let's call it men female from
Speaker 2: the age of don't know, I guess I can go
Speaker 2: to like twenty to sixty five. If you want big range.
Speaker 2: But out of that cohort, I think like there's probably
Speaker 2: a big chunk in that category that think a MEDSPA
Speaker 2: is just botox. Yes, I mean, you know, like obviously
Speaker 2: not for you and I because we're in it every
Speaker 2: single day. And it's like, man, like, how do you
Speaker 2: to understand that? But go talk to your you know,
Speaker 2: like people that are that don't work in the industry.
Speaker 2: It's it's astonishing to hear. So you know, you're going
Speaker 2: to continue to see this grow, and it has to
Speaker 2: grow through education, Like to your point, Yeah, I mean,
Speaker 2: if you're going to hire a personal trainer and you're
Speaker 2: just going to focus on biceps, like you know, it's
Speaker 2: that trainer's job and responsibility to educate, so you know,
Speaker 2: you don't have to be sales and b people like
Speaker 2: to buy information exactly.
Speaker 4: You're the expert. I want you to tell me.
Speaker 3: It'd be as if I went to and said, hey, Cam,
Speaker 3: I want to do two videos a week for Instagram
Speaker 3: or something along those lines, and I would hope that
Speaker 3: you would say, great, we can do that, but how
Speaker 3: about this for an overall marketing approach?
Speaker 4: And you're the expert, and I would actually appreciate.
Speaker 2: That yeah, totally, you're like guy me right. People want
Speaker 2: to buy expertise. They want to buy expertise, you know,
Speaker 2: And so I think like, especially as an educator and
Speaker 2: provider and academic, like, man, these these people are well
Speaker 2: equipped to give information, oh yes, and help. Like so
Speaker 2: if you guys are tuning in now and you're you
Speaker 2: know you, I would include that in your consults, your treatment, planning,
Speaker 2: your journey, like just continuously educate your patients, and then
Speaker 2: those patients are going to go tell their friends their colleagues.
Speaker 2: Like information spreads, right, And so you've really seen that
Speaker 2: through weight loss lately there was a I mean here
Speaker 2: to what you're saying, like, yeah, it was a two
Speaker 2: hundred and thirty six percent increase in GLP ones like
Speaker 2: weight loss semi glue tide from twenty twenty two to
Speaker 2: twenty three. That's that's huge, right, like one point two
Speaker 2: billion to spend, and I think you said in the
Speaker 2: stat here it was eight hundred and eighty million in
Speaker 2: total revenue Q one Q two, which was an eighty
Speaker 2: five percent increase in the same time period from twenty
Speaker 2: twenty three to twenty twenty four. Yeah, that's what that's
Speaker 2: that's the call out right there in the data.
Speaker 4: Yeah, I mean, that's amazing.
Speaker 3: And I think there was a number in there that
Speaker 3: monthly weight loss spent went from fourteen million to one
Speaker 3: hundred and thirty six million.
Speaker 4: I mean, it's just the growth is just unbelievable.
Speaker 2: Yeah, right there. Yeah, So on page twenty three, from
Speaker 2: twenty one to twenty four, Yeah, monthly spent fourteen million
Speaker 2: to one hundred and thirty six million. That's three years.
Speaker 4: Isn't that amazing? Yeah?
Speaker 3: I mean, and then in that the beauty of medical
Speaker 3: aesthetics as well as this is something that wasn't on
Speaker 3: anyone's radar. In twenty two we talked about the chart
Speaker 3: that we doubled in size from seventeen to twenty three,
Speaker 3: and and these are some examples as to why is
Speaker 3: the science gets better as the technology continues to improve.
Speaker 3: There are services that cam we might be talking about
Speaker 3: next year that aren't on our radar. And I think
Speaker 3: that's the beauty of this space is all of these
Speaker 3: ancillary things that are now being absorbed within medical aesthetics
Speaker 3: and then at large from a global perspective, certainly in
Speaker 3: the United States, the focus on overall wellness a lot
Speaker 3: of it, which kind of falls under our umbrella.
Speaker 4: It's just such a perfect time to be in this space.
Speaker 3: I mean, if you know, I wish I owned medical
Speaker 3: aesthetics practice sometimes because talk about great timing, right, It's
Speaker 3: not often that you come in on the first or
Speaker 3: second floor of an industry.
Speaker 2: Yeah, No, absolutely, I totally I wish I owned like
Speaker 2: four or five. I've had opportunities to invest in them,
Speaker 2: like years ago. Un just unique opportunities just be being
Speaker 2: in the industry just like you. Yeah, and I've passed.
Speaker 2: There has been times where you know, we were going
Speaker 2: to open one up and have to get it, you know,
Speaker 2: because I shoot, you don't want me touching your face,
Speaker 2: your body. I am not qualified for that at all.
Speaker 2: But I am a business guy, and I could definitely
Speaker 2: find a location and know how to market the crap
Speaker 2: out of the it and know the numbers and know
Speaker 2: how to run a console and know how to get
Speaker 2: the provider and get to get the right people in
Speaker 2: place to do it. I think I've just been too busy.
Speaker 4: Running your company.
Speaker 2: I mean, you know we kind of heep that. I
Speaker 2: mean from you know, that growth phase, you know, from
Speaker 2: twenty sixteen all the way up to to you know,
Speaker 2: the numbers that we had last year. It's just it's's time.
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Speaker 2: Back to the show. But I hear you, man, it's
Speaker 2: still very very interesting to me, and I think that
Speaker 2: even though you've seen this incredible growth over the past,
Speaker 2: you know years, it's there's going to be a new
Speaker 2: exciting thing that's going to come out. And that's the
Speaker 2: beauty of it is. You know, twenty two I wasn't
Speaker 2: talking about we lost at all. Maybe some practices were
Speaker 2: doing that, but now it's like the talk of the town.
Speaker 4: Agree.
Speaker 3: Yeah, And you know, as we mentioned earlier, brings in
Speaker 3: a new demographic of patient that starts adopting other core
Speaker 3: mets VAH non invasive services, which is exciting. And you know,
Speaker 3: as you said, new things continue to come out that
Speaker 3: aren't on the radar, and you know, like I see
Speaker 3: the page you're on, Like dermal fillers is a perfect example.
Speaker 3: In twenty three it actually shrunk i think seven percent
Speaker 3: from as compared to twenty two, and you wonder why, right,
Speaker 3: it's like, well that doesn't make sense because we're talking
Speaker 3: about weight loss and zempig face or whatever. People were saying, Well,
Speaker 3: it's because of biostimulator. There's more natural longer. So it's
Speaker 3: really fascinating that the type of service remains, but as
Speaker 3: the science technology changes, it's it's just a different kind
Speaker 3: of adoption.
Speaker 4: Now, with that said, on.
Speaker 3: Fillers, we did see enough tick in Q one twenty four,
Speaker 3: so you know, we're starting to see that creep back up.
Speaker 3: But that was an interesting one that we saw when
Speaker 3: you looked at the different segmentation of services.
Speaker 2: Everything else rude, everything else grew Durmer phillers. It shrunk slightly, right,
Speaker 2: nothing dramatic, still up from twenty twenty one and twenty
Speaker 2: one it was three point one billion in total cells.
Speaker 2: And this is derma fillers. And you know twenty two
Speaker 2: went up to three point four and twenty three down
Speaker 2: to three point two. But you're right, it's the only
Speaker 2: data point on this entire graph that did shrink. Now,
Speaker 2: look at weight loss, like that's like crazy, It's like,
Speaker 2: I mean, I know that we've we've talked about it,
Speaker 2: but you can just see those charts. It's just it's
Speaker 2: just bananas. That's like just massive growth. And so if
Speaker 2: it continues that run rate, just on weight loss for
Speaker 2: a second, at eight what was it eight hundred million
Speaker 2: in Q one, Q two for this year, if it
Speaker 2: continues to run rate, that'd probably be at what one
Speaker 2: six one seven.
Speaker 4: Maybe that's right.
Speaker 2: Yeah, so you're going to see another big pop in
Speaker 2: terms of weight loss for the overall year.
Speaker 3: If that run rate continues, which there was one two
Speaker 3: in twenty three, just like for comparison on what you
Speaker 3: just did.
Speaker 4: Isn't that amazing?
Speaker 2: Yeah? All year, all year long, which is which is wild.
Speaker 2: So yeah, let's look at this report in more detail.
Speaker 2: You know, I think, in fact, there was another graph
Speaker 2: before I get into that. Okay, it was this one
Speaker 2: right here. Let's see, so this is page ten. This
Speaker 2: graph is really interesting. Now this this graph will get
Speaker 2: into you guys. It's US aesthetic sales share by segment
Speaker 2: in twenty twenty three. So this is like broken down
Speaker 2: by the entire segment. So Ben, will you walk us
Speaker 2: through this really quick?
Speaker 4: Sure? Yeah, and you know this didn't really surprise us.
Speaker 3: You know, I'll start by stating that, you know, we
Speaker 3: talked to a lot of practice owners obviously investors as well,
Speaker 3: and generally speaking, we like a practice. Right, if I
Speaker 3: had a Magic wand that's maybe fifty to sixty percent injectibles,
Speaker 3: you know, maybe twenty percent or so energy based, maybe
Speaker 3: ten percent skincare, and then you know, you round it
Speaker 3: out by some of these things we're talking about, like
Speaker 3: weight loss, and what we're seeing here is it kind
Speaker 3: of broke down that way Interestingly enough, thirty two percent
Speaker 3: of sales were neurotoxin. I don't think that surprised anyone.
Speaker 3: Twenty one percent dermal fillers, so that's you know, right
Speaker 3: in line with that fifty to sixty percent, and then
Speaker 3: twenty one percent energy based devices. Now, one thing that's
Speaker 3: interesting is weight loss was right behind that now at
Speaker 3: eight percent. So for that to be number four in
Speaker 3: that short of a time we thought was really interesting.
Speaker 3: You know, skincare was seven percent. I think that's you know,
Speaker 3: an opportunity for a lot of practices we suggest that
Speaker 3: to maybe be a little bit higher if it can be.
Speaker 3: It just has really nice margins. But yeah, I think
Speaker 3: overall it was really interesting, but fortunately not.
Speaker 4: Overly surprising as to what we would have hoped for.
Speaker 2: Well, and what's interesting too, I think neurotoxins carry the least.
Speaker 3: Margin, right, Yeah, Like that's a good point. I'm glad
Speaker 3: you mentioned that. Like neurotoxin's the plus and minus, right,
Speaker 3: Like the cogs, the cost of goods sold on those
Speaker 3: or thirty five forty percent often times, so that's the
Speaker 3: negative if you want to look at it that way,
Speaker 3: Like if I inject the dollar thirty five forty cents
Speaker 3: or flying out the door.
Speaker 4: So and I haven't even paid my people or paid
Speaker 4: my rent yet. Now.
Speaker 3: The beauty of it, though, is that I know that
Speaker 3: CAM is going to come back according to this report
Speaker 3: in ninety one days average, which is kind of interesting.
Speaker 3: I know Cam's going to come back in ninety one
Speaker 3: days for that. So that's the repeat revenue perspective that
Speaker 3: makes this industry so attractive. And then if you balance
Speaker 3: it out by some of these other things CAM, that's
Speaker 3: where we get to that ideal like total cogs of
Speaker 3: maybe twenty twenty five percent, because like Energy Base skincare,
Speaker 3: Professional grade skincare, those are lower cost of goods sold.
Speaker 3: That kind of start from an overall portfolio perspective. You
Speaker 3: can get the cost of gets sold there. But yeah,
Speaker 3: that's a really good point. Neurotoxins have a high cost
Speaker 3: of get sold percentage on those.
Speaker 2: Yeah, and it's it's the highest thing sol. I mean,
Speaker 2: it's it's predictable, right, I think I can get volume discounts.
Speaker 2: But the nice thing about it as you get repeat
Speaker 2: patients and then you get the another opportunity to educate
Speaker 2: your patient on all the other procedures and benefits that
Speaker 2: your practice carriers, which which is huge.
Speaker 4: Yeah, you brought treatment planning up earlier.
Speaker 3: That's a perfect example of of why you should. You know,
Speaker 3: you compare a practice with the makeup we're talking about,
Speaker 3: like this makeup that you're showing as opposed to one
Speaker 3: hundred percent inductibles practice, you know, very easy to see
Speaker 3: which one's going to be more profitable totally.
Speaker 2: And the energy based device is like that that actually
Speaker 2: it's it's the same as Germa fillers. German fillers was
Speaker 2: twenty one percent. Energy based devices was the same. And
Speaker 2: I mean I know that the the profit margins on
Speaker 2: energy based devices are much higher than fillers. Oh yeah,
Speaker 2: much higher, much higher.
Speaker 4: So I mean.
Speaker 2: Yeah, I mean I was at a recent event and
Speaker 2: we were talking about there's a specific device we're talking
Speaker 2: about to operate the machine. It was a micro needleing device.
Speaker 2: I won't I won't say that the name or brand,
Speaker 2: but it to run it, it was cost about one
Speaker 2: hundred bucks to run the device, and the average practice
Speaker 2: was selling it was like a package type opportunities, but
Speaker 2: basically fifteen hundred, eighteen hundred dollars a treatment. Yeah, I
Speaker 2: mean that's a very profitable machine.
Speaker 4: Yeah, what is that seven eight percent cogs? I mean
Speaker 4: that's unbelievable.
Speaker 2: That's like SaaS business dude, that really is I'm like, well,
Speaker 2: why not just open up a practice and just do
Speaker 2: micro need link.
Speaker 4: I almost said that just that, Oh it's.
Speaker 2: Crazy, just focus on that, Like, man, I know what
Speaker 2: would happen though, Like I totally get that you have
Speaker 2: to have other services and categories. But you know, if
Speaker 2: you look like Scott Callahan, like he knows threads like
Speaker 2: to it, that guy gets it under. That's like that's
Speaker 2: his area of expertise. Yeah. Yeah, he's unbelievable at it,
Speaker 2: and that's like what he's honed in on. But like,
Speaker 2: I haven't talked to a practice. It's just like, hey,
Speaker 2: we only do you know, like microdating. It seems like
Speaker 2: and this is Carrie's positives and negatives and I and
Speaker 2: I get having a broad based service menu, but I
Speaker 2: do think some of the practices and practice owners just
Speaker 2: want to carry everything as well and not specialize. Yeah,
Speaker 2: because the practice down the street has the same stuff
Speaker 2: and you know, like just a call out there, I
Speaker 2: think it's important to specialize as well.
Speaker 4: That's such a good point.
Speaker 3: I mean It reminds me of like Steve Jobs, right,
Speaker 3: one of the first things that he did when he
Speaker 3: was rehired at Apple is he basically got rid of
Speaker 3: most of the products and focused on like two or three.
Speaker 3: And if you're the best at something and you have
Speaker 3: that level of focus, yeah, usually what you see is
Speaker 3: a very focused entrepreneur that knows their lane and therefore
Speaker 3: is able to completely succeed in it versus someone that's,
Speaker 3: you know.
Speaker 4: That mediocre at everything. Completely agree.
Speaker 3: I think having a true focus knowing your patient base
Speaker 3: is such an important piece to running an organization.
Speaker 2: That's a great point, totally, totally. And I was running
Speaker 2: I have this really cool AI tool that kind of
Speaker 2: breaks down, like I've ran it in various different ways,
Speaker 2: but essentially you could you could say, Okay, I'm going
Speaker 2: to buy this device. Let's say this cost is one
Speaker 2: hundred and fifty K. Some are more somewhere less, but
Speaker 2: I put it at that, and then I said, Okay,
Speaker 2: how many treatments do I have to do in order
Speaker 2: to pay off this device in one year, two years,
Speaker 2: three years, four years, like ten years. I think I
Speaker 2: put up to ten years. And then how many patients
Speaker 2: do I have to have, and I put in like
Speaker 2: the percentage of what it would cost to finance it,
Speaker 2: like the patient acquisition costs like in it is mind
Speaker 2: blowing really, Like when you go from just doing like
Speaker 2: this specific microneedling device, if you were just doing let's
Speaker 2: call it, I think it was like five treatments a
Speaker 2: month versus like twenty, which is not that's only fifteen treatments,
Speaker 2: That's that's nothing crazy. Some of these practice owners I'm
Speaker 2: talking to are doing like fifteen a day, so it's uh,
Speaker 2: it basically cuts down the you can pay off this device.
Speaker 2: I think it was like, you know, cuts the time
Speaker 2: off by like eighty percent or something like that. And
Speaker 2: then when you have it all paid off and you
Speaker 2: have like you know, no interest on it, your margins
Speaker 2: go out further. And so it's just really interesting to
Speaker 2: kind of play with the numbers on how many patients
Speaker 2: do I have to service to pay this device off,
Speaker 2: what's the cost, and what does that look like? Is
Speaker 2: very interesting. I think every laser rep should actually be
Speaker 2: using it.
Speaker 4: That's a fascinating exercise. I'd love to see that. That's
Speaker 4: that's pretty neat.
Speaker 2: Yeah, I'm like, dude, if I was selling lasers, Like
Speaker 2: this would be my number one tool that I would
Speaker 2: use to be talking to providers about.
Speaker 4: Well, you might be getting a lot of calls from
Speaker 4: laser text.
Speaker 2: Out yeah, oh yeah, okay dude. So the other interesting
Speaker 2: point this was interesting to me on this report, something
Speaker 2: I wasn't aware of. I figured, like, so eleven billion
Speaker 2: was spent on on surgical We're sorry, let's see eleven
Speaker 2: billion spent on surgical compared to fifteen billion on non surgical.
Speaker 4: Yeah.
Speaker 2: I always like, maybe it's just because I've been in aesthetics,
Speaker 2: Like that was something in the report I thought was
Speaker 2: pretty interesting, you know, because the cost per transaction is
Speaker 2: much higher on a surgical treatment obviously less right, So
Speaker 2: I'm like, Matt, how many botox appointments can you do
Speaker 2: in order to like compare next to breast augmentation rhinoplastic Right,
Speaker 2: for example, that's a four billion dollar delta. So people
Speaker 2: continuously want to invest in non surgical treatment.
Speaker 3: Yes, yeah, and that's that speaks to a lot of things, right,
Speaker 3: I mean, the technology science getting better for non invasive
Speaker 3: you know, in fact, we've we talk.
Speaker 4: I know you're in it as well. We're in the.
Speaker 3: Plastic surgery space. And some plastic surgeons have mentioned too,
Speaker 3: is that the effects that some glue tide has had
Speaker 3: on their practices, like people who are going to do
Speaker 3: lip pose section. Okay, maybe not anymore so as these
Speaker 3: technological things change, you know, I think plastic surgery is
Speaker 3: changing along with it, of course, But yeah, I agree.
Speaker 3: I think certainly the growth in medical esthetics is outpacing
Speaker 3: plastic surgery, which has been around longer. In fairness, it's
Speaker 3: a more mature market and so the growth rate is
Speaker 3: closer to other you know, medical subsector growth rates. But yeah,
Speaker 3: that's a really good point. That one stuck out to
Speaker 3: me as well.
Speaker 2: Yeah, and I don't know if it was like where
Speaker 2: it was in twenty two or twenty one. I didn't
Speaker 2: see that in the report. Might be in there. I
Speaker 2: definitely want to go through this thing again. But you know,
Speaker 2: it just goes to show like business changes and evolves,
Speaker 2: and if I'm a plastic surgeon, you know, I see
Speaker 2: a lot of plastic surgeons that obviously adapt and bringing
Speaker 2: aesthetics into the practice. And we've seen that. But if
Speaker 2: I have, or I've only kind of done it, or
Speaker 2: I haven't, I think some of them still may devalue
Speaker 2: it because they're a surgeon. You know, it carries a
Speaker 2: little bit of ego if you will. And Man, I
Speaker 2: think that they better really start considering this going forward,
Speaker 2: that this is probably going to I mean, overall spent
Speaker 2: is out pacing, so like eventually, it just kind of
Speaker 2: goes to show that the aesthetic side is going to
Speaker 2: outpace your surgical side of your practice eventually.
Speaker 3: And that's such an interesting conversation, Cam because I remember
Speaker 3: a few years ago you go into plastic surgery conference
Speaker 3: and you know, you didn't really talk about medical aesthetics.
Speaker 3: You didn't talk about non invasive you know you've been
Speaker 3: to the recent ones as well. I know they're starting
Speaker 3: to introduce those sessions in there. So it starts, you know,
Speaker 3: it starts showing you, I think, macroeconomic where that market
Speaker 3: is going, which is, okay, it's going to start to
Speaker 3: be adopted to your point, which is but then you
Speaker 3: start looking at okay, what do investors think about this?
Speaker 3: And if you look at some of the statistics, like
Speaker 3: we talked about this space, the non invasive space being
Speaker 3: resistant to market economic downturns, plastic surgery gets hit pretty
Speaker 3: hard oftentimes during market economic downturns because it's you know,
Speaker 3: sometimes it's a one time thing you need and you
Speaker 3: might put it off a year or two years before
Speaker 3: you cut a forty thousand dollars check or depending on
Speaker 3: what you're doing.
Speaker 4: So that's one thing.
Speaker 3: The other thing is from a risk perspective, surgical revenues
Speaker 3: are a lot riskier than from an investor perspective anyway,
Speaker 3: surgical revenues are a lot riskier than non surgical revenues,
Speaker 3: so they're actually valued lower, which I think shocks a
Speaker 3: lot of people than you know, medical aesthetic non invasive revenues.
Speaker 4: So completely agree.
Speaker 3: I mean, obviously our first suggestion is run your organization
Speaker 3: according to your vision.
Speaker 4: And your DNA.
Speaker 3: But if you are open to that, we are big
Speaker 3: proponents of, you know, adding you know, kind of that
Speaker 3: medical aesthetics non invasive side to surgical practice.
Speaker 4: It works, It works really well.
Speaker 3: It also reduces like key person risk and things of
Speaker 3: that nature. That if you're a you know, single surgeon
Speaker 3: or even two surgeon organization, you have quite a bit
Speaker 3: of risk there because yes, you're able to produce four
Speaker 3: or five million revenues by yourself, which is unbelievable by
Speaker 3: the way, but it's all dependent on you. So it's
Speaker 3: a really fascinating conversation that one totally totally.
Speaker 2: Yes, you're saying that the valuations on the EBITDA trade
Speaker 2: at a higher rate on the non avasive side.
Speaker 4: Correct.
Speaker 3: Yeah, if I have a two million dollar business, both
Speaker 3: of them, two of them one surgical ones not the
Speaker 3: one that's not is going to trade higher.
Speaker 2: I figured that. I mean sense like, yeah, you're going
Speaker 2: to go and it's a one and done. Typically most
Speaker 2: you know, most times it's it's you're buying them, you're
Speaker 2: buying them. I call it patient lifetime value. You know,
Speaker 2: that's what that's what you're buying, is the loyalty and
Speaker 2: the repeat, right, which kind of brings you out to
Speaker 2: my next point, Like I'm here page twenty seven. It
Speaker 2: talks about retention. You know, patient retention is is oh
Speaker 2: my gosh, so important. In fact, a quick little call
Speaker 2: out here, like you guys, please invest in running a
Speaker 2: consult the right way, building out a treatment plan. I
Speaker 2: know I talked about it a few times on recent episodes,
Speaker 2: but this is what's really going to help protect you
Speaker 2: in patient loyalty, patient retention. The benchmark here that Q
Speaker 2: sites puts out is patient retention should be high, and
Speaker 2: in fact they say greater than seventy percent is most
Speaker 2: attractive since higher retention facilitates revenue substantially and has a
Speaker 2: compounding effect on a patient visits and therefore profit. A
Speaker 2: lifetime client can be invaluable considered a patient who returns
Speaker 2: four times a year, spends one hundred to five hundred
Speaker 2: dollars per visits, and stays more than three years. But's
Speaker 2: so interesting about that that's the same data I have.
Speaker 3: That's awesome. I love that. That's really good to hear,
Speaker 3: you know. And this is what was fun about this
Speaker 3: white paper with them, right is q site had the
Speaker 3: data and I think the data, if I recall, is
Speaker 3: forty eight to fifty percent retention is what they came
Speaker 3: up with. The seventy percent was then from us, which
Speaker 3: is like, that's great, we see it. Our best in class.
Speaker 3: What we try to push for is seventy percent. And
Speaker 3: then it's funny you brought this one up because it's
Speaker 3: my personal favorite KPI can because like, if you have
Speaker 3: a practice, it's fifty percent and one that's seventy percent.
Speaker 3: There are a lot of KPIs that is a standalone,
Speaker 3: don't tell me a lot. It's like, okay, but I
Speaker 3: want to look at this other one. This one tells
Speaker 3: you doesn't. And I'm curious your viewpoint because this one,
Speaker 3: to me tells me I'm a patient walking in and
Speaker 3: you're greeting me correctly at the front. From a provider perspective,
Speaker 3: you're treating me well. Your chair side maner is good
Speaker 3: as I'm leaving. You're trying to rebook me after I've left.
Speaker 3: You're adding some sort of value. Maybe you're sending me
Speaker 3: an email. Certainly you're sending me reminders of my appointments
Speaker 3: coming up, so you're keeping me in touch with you
Speaker 3: in top of mind. So it's this one KPI that
Speaker 3: takes the clinical as well as operational efficiencies of an organization.
Speaker 3: It's the one that I really enjoy looking at because
Speaker 3: the other thing is like, if I'm paying you a
Speaker 3: bunch of money to bring patients in the door and
Speaker 3: I'm letting them leave out the back door, I mean,
Speaker 3: that's pretty frustrating that all you're doing is replenishing patients
Speaker 3: versus growing a practice an organization.
Speaker 4: So yeah, i'd love your thoughts on this one. Since
Speaker 4: you went to it.
Speaker 2: So yeah, no, absolutely, I mean I see, like I
Speaker 2: mean marketing companies, social media. You know, SEO can always
Speaker 2: produce new leads. You know, we can just take it there, right,
Speaker 2: You you have the ability to produce leads. And you know,
Speaker 2: because the the audience hangs out on those platforms are
Speaker 2: either going to do a Google search or they're going
Speaker 2: to look at your Instagram, your social you know, you're
Speaker 2: going to hit them with a Facebook guid. You have
Speaker 2: a website, you have Google my business. You can bring
Speaker 2: leads in, right, but like kind of zero and back.
Speaker 2: You actually you have to have a system to convert them.
Speaker 2: And you you have to, uh, you know, acknowledge the
Speaker 2: fact that someone's raise their hand and they're interested in
Speaker 2: a service and a treatment. And if you nail that
Speaker 2: with systems, processes, TechEd and you have the ability to
Speaker 2: to convert these leads you know, at a at a
Speaker 2: decent percentage, that's like nailing the first thing, right. So
Speaker 2: if you can convert at a really high rate and
Speaker 2: bring them in, educate them, get them on a treatment plan,
Speaker 2: and then have a robust checkout process. And the robust
Speaker 2: checkout process that I like that what is best in
Speaker 2: class that I see is upon leaving. Educate them like
Speaker 2: during the treatment, let's just roll back a little bit.
Speaker 2: During the treatment, educate them on all the products and
Speaker 2: services you have, not through sales, but information and you're
Speaker 2: the expert, right. And then as they're checking out, rebook them,
Speaker 2: ask for feedback and get a Google review out of them.
Speaker 2: Educate them on the inventory that you have. Right. Most
Speaker 2: practices carry a skincare line that's going to enhance her experience, right,
Speaker 2: So that's an upsell which keeps them loyal and wanted
Speaker 2: to come back and reload when that product runs out.
Speaker 2: Connect with them on social media. Great time to get
Speaker 2: a testimonial, have them call you out on social media
Speaker 2: on a story. Right, get them on a membership plan.
Speaker 2: Then they're really low. That's going to increase best in
Speaker 2: class when it comes to patient retention. Right. So it's
Speaker 2: important obviously get the leadson and convert them. But if
Speaker 2: you do not have that checkout process dialed in, it's
Speaker 2: going to be a turn and burn operation and you're
Speaker 2: continuously having to spend a tremendous money on marketing and
Speaker 2: be stressed out to get new clients.
Speaker 3: That's great advice and inn that cool, Like these little
Speaker 3: data points, that's where I think folks can go in
Speaker 3: and compare it against their practices. And let's say that
Speaker 3: I am listening to this and I'm one of those
Speaker 3: forty eight percent and I see seventy percent and I
Speaker 3: listen to your device, Like these are things that like
Speaker 3: data is so valuable because if you benchmark yourself against this,
Speaker 3: you kind of know exactly where you can tweak. You
Speaker 3: know what's possible anyway, Like if I'm forty eight percent, okay,
Speaker 3: what should I be? And if seventy percent is your
Speaker 3: new target and benchmark, then I heard what you said,
Speaker 3: and I'm comparing what I'm doing versus what you said,
Speaker 3: and I can take action on some of these things.
Speaker 3: And that's how you really start turning the practice for
Speaker 3: organization into this like really efficient machine, which is pretty
Speaker 3: exciting when you see folks do it.
Speaker 2: Dude, you just nailed it. Like that's the whole point
Speaker 2: of the data, right, Like let's get the data, let's
Speaker 2: look at it, let's talk about it, and then where
Speaker 2: are we at as a practice? So it doesn't matter
Speaker 2: if you're guys, if you're not at seventy percent, cool,
Speaker 2: it's an area to explore of opportunity to evaluate you
Speaker 2: are and now you can bring this up in your
Speaker 2: weekly sales meetings with your team and say, hey, we
Speaker 2: want to go from from why or X to Y
Speaker 2: or whatever. Guys like, what are we not doing? You know,
Speaker 2: and focus on that retention. But you have to know
Speaker 2: your numbers, Ben, Like, Yeah, that's the other hard part
Speaker 2: is I see time and time again where you know,
Speaker 2: the practice owners they may not know what their retention
Speaker 2: rate is, you know, and maybe not have the best
Speaker 2: systems and tech in place to know it. That is,
Speaker 2: I think EHRs and EMRs are obviously getting better, and
Speaker 2: if you're using them diligently the way that they're designed, like,
Speaker 2: you should be able to pull these reports pretty quick.
Speaker 2: But you know, that's another issue that I too, one
Speaker 2: hundred percent.
Speaker 4: That's exactly right.
Speaker 3: And I'm hoping that, you know, with consolidation in this
Speaker 3: space and the newfound focus on data and knowing what's
Speaker 3: going on in practices, that we'll see that get better.
Speaker 3: And they're continuing to get better as you just mentioned, Cam,
Speaker 3: But yeah, I completely agree with you.
Speaker 4: I think practice owners.
Speaker 3: Have to have the ability to have good tools in
Speaker 3: place to give them a chance to succeed.
Speaker 2: Yeah, man, I know we could talk on this report
Speaker 2: for a long time. I don't know how much more
Speaker 2: time you have, but you know, like I think we've
Speaker 2: covered a ton of meat and given a tremendous amount
Speaker 2: of value. I know you're super busy and I'm as well,
Speaker 2: So why don't we do this guys? You know for
Speaker 2: the audience that I think there's a lot more to
Speaker 2: go through on this. You know, for example, this is
Speaker 2: just a couple quick call outs before we go in
Speaker 2: two percent of all esthetics patients were millennials or younger
Speaker 2: in twenty twenty three. Like, that's amazing, you know. So
Speaker 2: and again back to the exercise you and I just did.
Speaker 2: I see the data? Okay, cool, if that's what it is,
Speaker 2: what are we going to do in terms of our
Speaker 2: marketing and the demographic of the approach? Right? So, like
Speaker 2: see the data? Who is your who is your audience?
Speaker 2: And then what action are you guys going to take? Right?
Speaker 2: Let's just go, is there any other call outs you
Speaker 2: want to talk about before a set of transact.
Speaker 3: That's actually the one that I was going to mention
Speaker 3: is the forty two percent millennials You're younger, and you
Speaker 3: just nailed it. Like, now that you have this data,
Speaker 3: you can analyze, is this who I'm reaching out to?
Speaker 4: Is my service mix geared toward these people?
Speaker 3: Because you know a decade or fifteen years ago, that
Speaker 3: wasn't the case. It was an older uh you know,
Speaker 3: female wasn't really talking about it because medical aesthetics wasn't
Speaker 3: as accepted as it is now. Now things are preventative
Speaker 3: and so forth, which completely changes the demographic of the
Speaker 3: patient base. You know, I would say one thing would
Speaker 3: be and we haven't really seen the uptick yet. We
Speaker 3: keep saying we're going to see it. We haven't seen it.
Speaker 4: You know.
Speaker 3: Male adoption was kind of interesting. Male adoption into this
Speaker 3: space hasn't been as fast as we would expect. However,
Speaker 3: if you look at spending habits, they line up with
Speaker 3: the females and in some cases outpace it. And that's
Speaker 3: something that I think surprised us, which was a pretty
Speaker 3: interesting you know, I think it's like in a chart
Speaker 3: there right here, kind.
Speaker 4: Of an Excel thing. Yeah, so that was kind of interesting.
Speaker 2: I thought, Yeah, it shows that the males actually spend
Speaker 2: almost four hundred dollars more per visit and that interesting. Yeah,
Speaker 2: I thought that. Yeah when I pre read this, that
Speaker 2: was very interesting. I'm like, huh, I wonder how, I
Speaker 2: wonder why that is. But yeah, it shows here, guys,
Speaker 2: in twenty twenty three, females the average like ticket, for example,
Speaker 2: thirteen eighty male seventeen sixty six, which is which is
Speaker 2: really interesting. But and then it breaks it down by
Speaker 2: like segment female male. There's also a really cool report
Speaker 2: in here, guys that talks about gen Z and younger millennials,
Speaker 2: gen X boomers, what they spend, what services they invest in. You, guys,
Speaker 2: you have to get this report like it's amazing and
Speaker 2: take the time to read it and then don't like
Speaker 2: don't get the report and just read it and just
Speaker 2: tell yourself you read the report, Like read the report
Speaker 2: and take action. Like that's my biggest thing is there's
Speaker 2: a lot of people that are like listen to podcasts,
Speaker 2: they listen like they read books audio and they just
Speaker 2: just like, don't just read it. To read it, like
Speaker 2: take notes from it and then implement all of the
Speaker 2: data points that can move the needle for the practice,
Speaker 2: because that's what's going to put you, guys in a
Speaker 2: position to have ultimate success. And especially going in a
Speaker 2: twenty twenty five like this is a perfect time over
Speaker 2: the holidays, digest the report and then take action based
Speaker 2: upon what the data tells us.
Speaker 4: Yeah.
Speaker 3: I think financial data or KPI data really can drive
Speaker 3: everything from culture to operational guidance.
Speaker 4: We do it all the time, by the way.
Speaker 3: I mean, I look through things like this for investment,
Speaker 3: banking and management consulting firms.
Speaker 4: To see how we're tracking.
Speaker 3: And it's really neat because, as you said, a camp,
Speaker 3: I do take notes and I put it against our numbers,
Speaker 3: and I keep it there as.
Speaker 4: A reminder of where we have the.
Speaker 3: Ability to tweak, because it allows you then to double
Speaker 3: click into why am I lower than industry, and therefore
Speaker 3: it allows you to start correcting some of your behaviors.
Speaker 3: It really works because you know there's that saying. I
Speaker 3: know you say it too. You get what you measure, right,
Speaker 3: and if you're measuring that, that's something that you'll be
Speaker 3: focused on.
Speaker 2: Yeah. No, absolutely, I one hundred percent agree, Ben. It's
Speaker 2: been a pleasure having you on, man. I think we
Speaker 2: could talk for another hour. Sure, But like if somebody
Speaker 2: if they want to go get the report, where's the
Speaker 2: best place have you guys published this on the.
Speaker 4: Site or yeah, I think we have it on our website.
Speaker 3: You can also, you know, kind of use any of
Speaker 3: the emails on our website that are available there and
Speaker 3: we'll get it over to you.
Speaker 4: It's certainly something that we like sharing with the industry.
Speaker 2: Yeah, I'm on their site.
Speaker 4: Guys.
Speaker 2: If you go to knowledge Base, I believe it's under
Speaker 2: blogs Business Development, it's on the site.
Speaker 4: Oh perfect.
Speaker 2: Yeah, and for some reason, you guys can't, Fine, I
Speaker 2: just get in touch with sky Tell. These guys are
Speaker 2: best in class when it comes to understanding the market.
Speaker 2: They are like extremely detail oriented when it comes to
Speaker 2: understanding what success looks like in order to run an
Speaker 2: effective practice. I know quite a few people on Ben's team.
Speaker 2: They're amazing. They're out of Dallas. So if you guys
Speaker 2: are are you know, seeking for advice on what to
Speaker 2: do within your aesthetics practice from a consulting standpoint, Maybe
Speaker 2: you're looking to exit, Maybe you're looking to exit in
Speaker 2: ten years from now. Maybe you want to run your
Speaker 2: practice like you want it to exit so you can
Speaker 2: get the highest value from it. That's like, you know,
Speaker 2: that's one of the things I always say is run
Speaker 2: it like you're going to sell it, because that's how
Speaker 2: you can really get tightened up in your numbers and
Speaker 2: your efficiency and your process. And you run it that
Speaker 2: way and you're going to have a very robust machine.
Speaker 2: So I'll leave it at that. Guys, thank you so
Speaker 2: much for taking the time to tune in, Ben, thank
Speaker 2: you for joining and you, guys, if you found this
Speaker 2: valuable this specific episode, please share it. Let's get the
Speaker 2: conversation going. I know that you have colleagues that could
Speaker 2: get a tremendous amount of value from this white paper
Speaker 2: and from Ben and I just kind of going through
Speaker 2: the data and talking about taking action from the data.
Speaker 2: So I'll leave it at that. Guys, You guys have
Speaker 2: a wonderful weekend. Until next time, Happy injecting.