Marketing Matters
Use Price and Promotion Wisely
You need to know how they work together and how they don't.

BY BRAD RUDEN, M.B.A.

As part of your marketing strategy, price and promotion can sometimes go hand in hand; nevertheless, you should consider them separate components.

If you don't, your marketing efforts will suffer from one of the biggest and most common marketing flaws: failure to present a consistent message to your target group.

What happened with LASIK pricing is a perfect illustration of this. Practices that cut their prices often found themselves presenting two different images to their market -- low pricing on LASIK services but standard or premium pricing on other services.

When patients were introduced to those practices through discounted LASIK, and then discovered the prices of other services were on the other end of the spectrum, they sought those other services elsewhere.

That said, you can offer a discounted price in a premium-positioned practice, as long as it's a temporary measure designed to attract new patients and keep them in the fold.

IF YOU'RE NOT COMPETING ON PRICE

If you choose not to compete on price in any way, effective promotion is your alternative. You need to clearly differentiate why your services come at a higher price than the competitions'.

To do this, it helps to know the competition. For example, the practice down the street may offer LASIK at $499 per eye, but with a "matrix" or tiered pricing arrangement. The $499 is for a limited prescription range. For patients who have astigmatism or refractive errors higher than ­1.5D, that price can double. So, if your prices are higher, but also all-inclusive, make sure your patients know that. It can drastically reduce or eliminate the perceived savings they may receive at the competing practice.

Also, some laser centers don't offer free enhancements if required. If you include that service in your pricing, make it clear in all of your promotional efforts. That way, patients can compare your services to the competitions' "apples to apples."

A UNIVERSAL MARKETING PRINCIPLE

I used discounted LASIK services as an example, but all your promotional efforts should work toward building a consistent image that separates you from the other eyecare providers in your market. These differentiating factors should give patients a reason to come to you versus another practice, regardless of their specific vision care needs.

Some possible differentiating factors:

• experience of physician(s)
• history/commitment to the community
• convenience of location(s)
• range of services provided in one location
• evening/weekend office hours
• cordial and compassionate office atmosphere.

Can you and your staff clearly and succinctly explain what separates your practice from others? If not, how can your patients be expected to? Ask your staff or long-time patients what sets your practice apart. Identify two or three of the most important attributes and repeat those in your promotional efforts.

One you identify your key differentiating points, ask yourself:

• Are we positioning the practice's image consistently (i.e., not high-end pricing on some services and bargain pricing on others)?
• Are we offering a consistent message through all marketing and promotional material?
• Do our pricing structure and promotional material complement or hinder our practice objectives?

KNOW WHEN AND WHY

Price and promotion are two different components of your marketing strategy; however, both must be in line with your overall practice image. The whole is greater than the sum of its parts.

Brad Ruden, owner of MedPro Consulting & Marketing Services in Phoenix, Ariz., is a frequent author and lecturer on ophthalmology practice management topics. You can reach him at (602) 274-1668, medpro@uswest.net , or via his Web site at www.medprocms.com.