Business Mgmt: clear vision, phone rings

[Guest guest]

The most

important thing in my opinion is to keep clear on my original vision for

both who I am and what my practice is about and then take every action I

make in light of that vision. When my vision gets foggy, my practice

suffers. When my vision gets clear, the phone rings and I book out. I

don't know exactly what process in the universe makes that happen, but

it has happened enough times to me that I have no doubt about it.

 

Christopher Vedeler L.Ac.

Oasis Acupuncture

 

 

ain't it the truth!

 

KB

 

 

 

On 1/20/07, Christopher Vedeler L.Ac. <ckvedeler wrote:

>

> Thanks Anne. I appreciate your perspective, especially coming from a

> business background. I am always open to learning and growing.

>

> I think the secret to a successful practice is to realize that your

> practice is an extension of you. Where you are strongest your practice

> will be strongest and where you are most challenged, your practice will

> be most challenged. My $1200 a month space is very, very nice (and

> quite a bargain for Scottsdale). I had a patent come in a few weeks ago

> and she brought her husband along. While my patient was on the table,

> he fell asleep in the recliner next to her. She told me yesterday when

> I saw her for a follow up, that she had never seen that before with him.

> My space sets the mood and establishes the foundation for the energy of

> my practice. It is not something I want to skimp on. Like Thomas said

> a few days ago, just keeping overhead low is not the path to success.

> We need to be smart where we put our money and Qi so our practice can

> thrive, but that doesn't mean not investing where it is important. For

> me, next to me, my space is the most important thing.

>

> I've been told I should raise my prices before, a few times by my

> patients. My philosophy is to provide a $100 treatment and only charge

> $65. When people feel they are getting high quality at a low cost they

> refer more and come back more. Think of Costco. I don't want the price

> of the first treatment to be a major barrier for someone with limited

> funds to see me and so I simply charge a flat fee of $65 for everything

> I do. At some point I may raise my prices, but for right now $65 seems

> to work well and I am making a decent living. I didn't get into this

> medicine to get rich (or to go bankrupt either). I was also very

> deliberate in the pricing of my services. It was based partly on local

> demographics and partly on my desire to make my services available to

> many more people than if I charged " Scottsdale prices " . As a result I

> have many patients drive over an hour through Phoenix traffic to see me.

> Also, at $65 a treatment many of my patients don't mind coming in every

> week (actually making me more money). At $75 or more that might become

> a barrier to some of them getting the full benefits of multiple

> treatments. However, that said, once I am as busy as I want for several

> months I may raise my prices to $75 for new patients.

>

> Growing a business is like walking a tightrope. One must consider so

> many variables to success and put up with a lot of fear. The most

> important thing in my opinion is to keep clear on my original vision for

> both who I am and what my practice is about and then take every action I

> make in light of that vision. When my vision gets foggy, my practice

> suffers. When my vision gets clear, the phone rings and I book out. I

> don't know exactly what process in the universe makes that happen, but

> it has happened enough times to me that I have no doubt about it.

>

> Christopher Vedeler L.Ac.

> Oasis Acupuncture

> <http://www.oasisacupuncture.com/> http://www.oasisacupuncture.com

> 9832 N. Hayden Rd.

> Suite 215

> Scottsdale, AZ 85258

> Phone: (480) 991-3650

>

>

>

>

Chinese Medicine <Chinese Medicine%40yaho\

ogroups.com>

>

[Chinese Medicine <Traditional_Chinese_Medicin\

e%40>]

> On Behalf Of

> anne.crowley <anne.crowley%40comcast.net>

> Saturday, January 20, 2007 8:23 AM

> To:

Chinese Medicine <Chinese Medicine%40yaho\

ogroups.com>

> RE: Business Mgmt

>

> Chris:

>

> This was great that you detailed all this for us. I have a few comments

> being a former business teacher myself. Now let me caveat this by saying

> I have not made the Fortune 500 myself as yet.

>

> I worked in the business world for 10 years (have an MBA), taught

> business, management and economics for 10 years after that, and as a

> small business person have a made a few mistakes and continue to learn.

>

> The " keeping overhead low " thing was told to me by a chiropractor when I

> first came out of school. I did not listen to him and got my own space

> at $1000/month, repainted, new blinds $2k. Two weeks later a tornado hit

> the town (hardley predictable since the last time it happened was 100

> years ago.) It devasted a lot of buildings near mine but not mine. I was

> obligated to pay that rent for a year in a town that looked war torn.

> Everyone came to my house basically, which is where I stil am

> predominately. I went into a dr.'s office two days last year (and the

> phone rang). I am about to join a wellness center (still part time for

> starting rent of $320 (no lease) The doctor was $400 (a lease that was

> binding even when I left earlier - it was hectic in there). I do

> advertise and write an article every month (and it is effective) This is

> $85 - $125 per month. I do other advertising occassionally.

>

> Okay Chris, what I wanted to add to your comments is: I think you should

> cover that overhead faster. I think 19 patients is too hard of labor to

> put out for overhead alone. One easy way to do it is raise rates. $65 is

> very low. One of our practitioners in our area who is a " live off the

> land " person and treats in a trailer on a farm just raised her rates to

> $75. Mine are $85 and another practioner in town is $90. First

> treatments run $150 to $160. I do a history and a treatment on the first

> day, so it runs about 1.5. hrs. Usually people need treatment right

> away. Now I know someone who is playing an insurance game and charging

> those without insurance much lower rates and those with much higher than

> what I just quoted you. Frankly, I need to sleep at night. I do worry

> about not serving everyone and I think the answer to that is clinics

> like Andrea has formed when you treat a group of people in lounge

> chairs. Otherwise a personal service like ours is worth so much more

> . Massage therapists in my area charge $75 (for their basic massage) and

> they go to school a year with a curriculum not nearly as demanding as

> ours.

>

> I like the Hawaian philosophy of community service, but my mechanic only

> accepts cash or check.

>

> Please take this in the spirit it was meant - to help. I struggle with

> these issues too.

>

> Anne

>

> -------------- Original message ----------------------

> " Christopher Vedeler L.Ac. " <ckvedeler@access4le

> <ckvedeler% <ckvedeler%25>40access4less.net> ss.net>

> > Hi Trish,

> >

> > I teach practice management at PIHMA so this is a topic dear to my

> heart.

> > It seems that many of us acupuncturists drop the ball when it comes to

> the

> > business side of our practice. I wish all of us could be successful

> making

> > a good living doing what we love.

> >

> > Here are a few things I do to keep my overhead low -

> > 1) I work solo. I don't have an office manager. Save $20 - $30

> thousand a

> > year or about $2500 a month. A $54 a month business line comes with

> > voicemail. I may loose a potential patient or two a month because I

> can't

> > answer the phone right away, but it isn't enough to justify a whole

> salary.

> > If I was much busier, I would need an office manager, but I just

> haven't

> > reached that point and I'm not sure I want to. I like keeping my

> patient

> > load between 25 and 30 patients a week for my own energy and sanity.

> > 2) I have a smaller office space. My rent is $1200 a month for 600

> square

> > feet, which is pretty cheap for Scottsdale.

> > 3) I have two treatment rooms, but one of them was going un-used most

> of

> > the time since I only book one person at a time for a hour (the way I

> like

> > it). So I sub-leased the other room to a reiki practitioner, reducing

> my

> > rent effectively to $700 a month. I typically cover my rent within 2 -

> 4

> > days of seeing patients.

> > 4) I target my marketing. I only spend money on marketing the produces

> > good results. This means that I track carefully where patients hear of

> me.

> > 5) My only other expenses are needles, herbs, office supplies and my

> phone

> > line.

> >

> > On a typical month my total overhead for a month is about $1200. At

> $65 a

> > patient I need to see about 19 patients a month to break even. I'm

> > currently seeing about 80 - 100 a month. That leaves a net income of

> about

> > $4000 - $5000 a month. While I won't get rich at that rate, it is a

> > comfortable living doing what I love and not being so busy that I burn

> out

> > (something very important to keep in mind!). I also teach 2 days a

> week at

> > the local acupuncture college supplementing my income an additional

> $800 a

> > month.

> >

> > Christopher Vedeler L.Ac., C.Ht.

> > Oasis Acupuncture

> > http://www.oasisacu <http://www.oasisacupuncture.com> puncture.com

> > 9832 N. Hayden Rd.

> > Suite 215

> > Scottsdale, AZ 85258

> > Phone: (480) 991-3650

> >

> >

> > Traditional_

> <Chinese Medicine%40>

> Chinese_Medicine <Chinese_Medicine%40>

> > [Traditional_

> <Chinese Medicine%40>

> Chinese_Medicine <Chinese_Medicine%40>] On

> Behalf Of pippa258

> > Thursday, January 18, 2007 6:35 AM

> > Traditional_

> <Chinese Medicine%40>

> Chinese_Medicine <Chinese_Medicine%40>

> > Keeping Overhead Low

> >

> >

> >

> > >>I priced my services not only to be competitive with my fellow

> L.Ac.'s but

> > to make them available to more people. While most of my patients are

> from

> > within 10 miles of my office, I draw from the whole valley with

> several

> > patients willing to drive an hour or more one way to see me. I make a

> good

> > living (by keeping my overhead low) and am fairly busy. I've been in

> > practice for over 2 years.<<

> > Christopher Vedeler L.Ac., C.Ht.

> >

> > Hi Christopher,

> >

> > Can you detail what you do to keep your overhead low?

> >

> > Thanks,

> > Trish

> >

> >

> >

> >

> >

> >

> > --

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> >