A hot dog on the street costs a buck. In a big city, maybe a buck-fifty. In New York, two bucks. When your product has a low dollar value, even if your profit margin is decent, your profit-per-sale is small. That’s why hot dog vendors don’t advertise.
Dentists with successful marketing campaigns market their high-dollar services, because these are the ones that can really bring in the ROI (Return on Investment). It’s much harder to make a good profit when you are marketing low value services, because the cost of acquisition remains the same. A prime-time radio commercial in a large market will cost $200 or more, regardless of whether you are selling $10,000 porcelain veneers or Ball Park franks.
Of course there are a couple of exceptions. You can advertise free exams, or half-price whitening, and then try to up-sell the heck out of each respondent. That’s the old “loss leader” technique. Or you can advertise that you work evenings, weekends and holidays, and that you specialize in handling emergency dental cases. That will get response – and you’ll work your butt off. Both of these methods can achieve some level of success, but why do things the hard way? Most dentists prefer to meet their financial goals seeing as few patients as possible, and practicing high-end dentistry.
At RAMP, we encourage our clients to market their high dollar services, such as sedation, implants and big cosmetic cases. If your advertising consistently delivers $5000, $10,000 and even $20,000 cases, it doesn’t take long to recoup your investment and make a considerable profit. There’s no such thing as expensive advertising, as long as it works. When we market high-dollar services we make the ROI game a whole lot easier. Let somebody else sell the hot dogs.