Managing Friends and Family Discounts in Medical Aesthetics Practices: A Strategic Guide

Offering discounts to friends and family often comes from a genuine place of generosity and goodwill. However, without a clear strategy, these well-intentioned discounts can inadvertently complicate your business operations. Over the years, I’ve seen how essential it is to balance these relationships with the financial health of a practice. In today's article, we’ll explore practical strategies to create a friends and family discount policy that keeps your cosmetic dermatology or medical aesthetic business thriving while still showing appreciation to those who matter most.

The Real Deal on Discounts

Value Perception: It’s natural to want to give a little extra to those we care about, but if we’re not careful, it can lead to a devaluation of our expertise. When discounts become the norm rather than the exception, they can undercut your well thought out pricing strategy. Your services are valuable, and maintaining that perception is key to sustaining your practice’s success.

Watching the Bottom Line: Every discount you offer is a slice of your revenue pie. While one or two might seem harmless, those slices can quickly add up. Before long, you may find that your overall financial health is taking a hit. Generosity is important, but ensuring your practice remains profitable is essential for its long-term viability.

Keeping Boundaries Clear: Mixing personal favors with professional services can blur the lines between the two, leading to confusion and, in some cases, resentment. By setting clear, firm boundaries from the outset, you maintain your professionalism and ensure that your personal connections don’t inadvertently harm your business.

Real-World Example: Turning the Tide with Clear Policies

Let me share a story from one of my clients, a thriving dermatology clinic. They noticed a rather disturbing trend: an annual revenue dip of 10%. The culprit? Unstructured friends and family discounts that had become so common, they started to erode the clinic’s profitability.

To tackle this, we developed a comprehensive discount policy. First, we limited generous discounts to immediate family and a select few close friends, setting strict caps on the number and frequency of discounted services each year. For extended family and acquaintances, we introduced smaller, tiered discounts that acknowledge the relationship without significantly impacting the clinic’s bottom line. This strategic overhaul didn’t just stop the revenue bleed; it actually resulted in a 15% increase in income. By refining our approach, the clinic was able to maintain its generosity without sacrificing financial health.

Crafting a Discount Policy That Works

Who Gets What: Be crystal clear about who qualifies for discounts. I recommend reserving this privilege for immediate family and close friends only—this keeps the policy manageable and justifiable.

Details Matter: Clearly define what discounts apply to and set caps. Whether it’s a percentage off or a fixed dollar amount, ensure everything is outlined so there’s no room for confusion.

Tiered Discounts: For those not in your inner circle, consider offering smaller discounts or other incentives, like loyalty points or occasional special offers, that don’t undercut your standard pricing.

Communication is Key: Make sure everyone on your team understands the policy, and communicate it clearly to those eligible. A well-understood policy is more likely to be respected and followed consistently.

Handling Difficult Conversations

Discussing discounts with close contacts can be challenging. It’s crucial to communicate your policies early and set expectations clearly. If you need to decline a request, do so politely, explaining that fair pricing helps ensure the high-quality care all your patients deserve. Having a few key talking points ready can help you stay consistent and professional during these discussions.

Leveraging Discounts Smartly

Loyalty Programs: Instead of direct discounts, consider rewarding repeat visits. A loyalty program that offers points towards services is a great way to show appreciation without directly reducing your pricing.

Time-Bound Promotions: Use special offers during slower periods or around holidays to manage the impact of discounts. This strategy helps keep your practice busy during downtimes while preserving the exclusivity of your services.

Special Events: Hosting exclusive events for friends, family, and top clients gives you a controlled way to offer discounts. It’s also a fantastic opportunity to strengthen relationships in a setting that benefits your business.

Setting Your Practice Up for Success

With a clear discount policy in place, you’re not just safeguarding your revenue—you’re setting your practice up for sustainable growth. These policies help maintain the perceived value of your services, uphold professional boundaries, and allow you to focus on what’s most important—providing exceptional care to all your patients.

Ready to Protect Your Practice and Boost Your Bottom Line?

Creating a well-structured friends and family discount policy is just one step toward building a thriving, sustainable practice. If you’re ready to take control of your business operations and ensure long-term success, let’s talk. Schedule a get acquainted call today.