Hey and welcome back to the Medical Entrepreneur podcast.
My name is Adam Sewell, and this is where we teach you how to break free from traditional medicine, carve the career of your dreams, and still do what you love.
In today’s episode, I am going to show you how to follow the pathway to premium pricing and become a successful medical entrepreneur along the way.
It is no secret that as healthcare professionals, we are in a rather interesting position when it comes to our salaries. We work in a heavily regulated and government-controlled industry. And the government actually sets the prices of medical services through Medicare.
Unfortunately for us, this means that within the mainstream medical system, our salaries aren’t even keeping up with inflation, let alone significantly rising. So, while we work more and more, there is less and less to bring home.
The only way to leave this vicious cycle is to break free from the broken mainstream medical system and today, I’ll show you exactly how to do that using the premium pricing strategy.
How to Break Free from the Broken Medical System?
Since the root of the problem is that your prices are determined by an external factor, the solution is to position yourself so that you can set your own prices.
This means you’ll have to start your own medical practice. Otherwise, you’ll always be subject to what others think you’re worth, and spoiler alert: they won’t pay you what you’re actually worth.
How to Set Your Own Prices?
Many medical entrepreneurs, especially those starting out, have difficulty setting their own prices. On the one hand, from a business point of view, they simply do not know how much they should charge, and on the other hand, they are too scared or uncomfortable to ask patients for money.
Although this is normal in the beginning, one simple step will ensure your success: choose your ideal patient based on pricing strategies.
Who is Your Ideal Patient?
Deciding who your ideal patient is should be the first thing on your checklist when setting up a medical business. And while there are many specifics to consider later on, you can start by choosing one of two pricing strategies.
You may be wondering what these two options are. Well, with the middle class slowly but surely disappearing, you should target your practice to either the lower class or the upper class. And since the lower class is likely to receive government subsidies through programs such as Medicare or Medicaid, the answer for most practices is to target the upper class.
And this is where premium pricing steps in.
Premium Pricing 101
Asking who your ideal patient is is like asking what kind of business you want to run. Do you want to sell to more people for less money, like Walmart, or to fewer people for more money, like Louis Vuitton?
Everybody’s choice is different. But from a business perspective, Louis Vuitton feels significantly more premium than Walmart. And that is because they are targeting the upper class and charging a lot of money for their products.
This is the result of the premium pricing strategy, where companies charge higher prices to appear of higher quality and luxurious. This attracts people who are happy to pay more in order to get a better service or product. And due to the nature of the medical field, this is the most profitable way to run a medical business.
Benefits of the Premium Pricing Strategy
Aside from the obvious benefits of making your practice feel more premium and attractive to potential clients, this pricing strategy has another great benefit.
As a medical entrepreneur, it is your job to help people and deliver high-quality services. Charging more will allow you to hire qualified staff, buy the latest technology, and equip your practice with the best tools.
If your practice is barely breaking even, you will hardly be able to do a good job. And that won’t benefit anyone. So make sure to operate on a high enough margin where this won’t be a problem.
I hope this guide helps you start your business. And if you think you’re ready to start your own journey as a medical entrepreneur, make sure to follow us on social media and subscribe so you never miss an episode!
Additional Resources:
– Join my challenge here!
– Check out my website here!
– Sign up for our Aesthetics training here!
Medical Entrepreneur is a podcast dedicated to those who are trying to escape mainstream medicine and start building the healthcare business of their dreams.
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