We know patients are often concerned with finding the lowest price and saving a few dollars where possible – it’s common to get “price shopper” calls where the patient is contacting numerous practices looking for the cheapest option.
So, it can be tempting to position yourself as a low-cost option when you know that there is no shortage of people that will gladly flock to you.
However, there are several reasons why this is actually a risky strategy in the long-term – let me explain why.
Someone can always charge less
No matter how low you price yourself, someone can always come along with a lower offer.
If your entire branding and positioning is around being low cost, budget option, then what do you do when someone beats your price by 10%?
You’ll be pressured to either lower your prices (meaning less money and more work to maintain profits), or you have to rethink your entire brand and strategy.
When competing on price alone, it quickly becomes a race to the bottom that you don’t actually want to win.
It affects how people perceive your value
It’s no secret that when something costs us big bucks or was very difficult to obtain, we tend to place a high value on it.
For example, a $7 bottle of Jacobs Creek isn’t going to excite you the way a bottle of Penfold Granges does.
One is a dime a dozen, and the other has an air of exclusivity, prestige, and quality.
If patients feel like they paid a small price for a service, they won’t really appreciate the value of your work.
There may be subconscious assumptions that it was easy, anyone can do it, they didn’t receive a high-quality experience, it hasn’t made a huge difference in their lives.
People can copy what you do, but never who you are
A much more effective means of positioning yourself and your practice, is to consider your Unique Selling Proposition (USP).
What makes you different? What will patients experience when they choose your services? What does your practice offer that no-one else can?
Think long and hard about what really separates you from the pack, because that’s going to be the one thing that will make you stand out.
Not just that you provide great service or have a friendly team or expert clinicians, because anyone can claim that.
Think long and hard about what makes your practice unique, what appeals to your ideal patient avatar, and that’s what’s going to give you a competitive advantage.
I’d highly recommend you check out this podcast episode with Dr David Penn from Southern Cross Dental – he’s considered one of the dental industry’s most successful entrepreneur’s and has some great advice around positioning your practice for longevity.
