Tuesday, January 21, 2014

$2 Per Graft!

Too good to be true?

This is our typical conversation below, that we have with patients who are focusing their search on finding the cheapest doctor to do their procedure without considering their final result.

We try to educate the patient who is researching this procedure what they should consider before making a final decision.

The conversation below is in reference to a patient who is tempted to sign on with a doctor that is not featured on the site that is being advertised.  There are very few examples of the work shown and it is not clear whose work it is.  A corporation cannot do a hair transplant but they can own the photos of the work that was done by whomever and whenever.



Dear Prospective Patient:

Basically, the company you are asking about with the $2 graft sale  is  a "low price" marketing company. Only here the difference:

 The _________ Instiitute is launching a per per click campaign online based on a $2 per graft price which seems REALLY attractive to the consumer. They "drive" sales based on a "low ball" price using the low low pricing to over ride the fact that they are simply just a marketing company. They "collect" or "book" as many patient's as possible for a week out of the month. Let's say 20 people all looking for the $2 graft price which sounds awesome. (and I agree this is a great sales strategy). And what this strategy does is help the prospect to "overlook" the fact that there are no real results shown on the website and no specific doctor, only low price. If these 20 patients are all paying on average $4,000, that turns into $80,000 for the week. They hire more staff from quite frankly anywhere they can get them just for that week. They then call one of their three doctors who are licensed in Colorado and say, "Hi Dr. X, I have $80,000 in business waiting for you in the middle of February. At 20% commission, that is $16,000 to you, we will pay for your flight and hotel, and you get away form the family grind back in Florida! How's that sound? The problem with this model is the following:

1) You will be sharing your surgery time with high numbers of additional patients. The doctor will spend very little time with you at all. 

2) The staff will be seriously diluted. Let us give them some credit and say they have 2 staff members who are excellent! Ok, fine. But with 3 other patients, what staff are you getting that day? Is it the A+ staff? Or is it the brand new staff that has no experience? Because their overhead is going up they will be sub contracting the lowest possible paid staff. 

3) The "bait & switch" - I am not accusing this company of doing this in any way. However, BUYER BEWARE! Here is what happens ever day in this industry. The doctor walks in and introduces himself before your procedure. He seems really nice. You feel very comfortable. However, although your "sales guy" was confident the doctor can get the job done with 1,800 grafts, the doctor seems to feel this morning because, ironically, he has some "extra time". It is your lucky day! He is confident that he can "fit" at least 3,000 grafts where you need the work! WOW! Exciting! And, oh by the way! It's your lucky day AGAIN! They are on sale! Your $2 low price, best in the industry graft price, just got cut in half! The additional 1,200 grafts are only $1 each! OMG! SIGN ME UP! 

SO, you are looking at 1,800 grafts at $2 each = $3,600. Add to that another $1,200 (a steal of a deal) and you are at $5,000

4) POST OP KIT - You do want to heal right? I mean, you just spent $5,000, a hell of a deal to restore your hair. Well, the doctor recommends a graftcyte kit for perfect healing. It's only $300 (maybe $500). No problem right? Let's see that credit card again, ok? GREAT! By the way, we include this in our price.  Don't forget the laser comb ($800 - $3000?)  You need that and our special vitamin
mix  at $150 a month?  We sell no add - ons in our office.

Mr. Patient:

I am NOT saying this stuff is for sure at the hair clinic you chose. I am NOT accusing them of anything. You are a grown man and can think for your self and ask the right questions. I am just showing you a business model that alot of "surgical marketing companies" use to make money. There are many companies that using internet low price marketing to attract hair loss patients looking for a deal, however, this comapny will claim to have an office in different sates. They make you think they are a BIG company. In reality they are just collecting leads and selling them to doctors in different sates that are already doing this.



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