The art of merchandising and marketing

Once you have managed the factors of space, staff training, and storage, you will need to merchandise your skincare and cosmetic products effectively. Patients need to know what you have on offer, and be able to test and try products to make their selection. Fortunately, the start-up costs are relatively low compared to adding a €75,000 laser for example.

When you are just starting out, stick with well-established cosmeceutical companies that can offer marketing support such as on-site staff training, patient literature, signage, testers, samples, and ongoing assistance. Recognisable brand names also give patients a sense of comfort and confidence with the products you are recommending and enhance your credibility. Your ethical standing as a physician depends, in part, on whether patients feel that they are getting reputable products that are safe and effective, and that offer value for money.

As in any retail venture, merchandising, product display, and inventory management are keys to the success of the endeavour. Products should be displayed in an attractive way in patient areas to attract interest and generate questions about purchasing. The featured selection should be changed frequently as new products are added. Testers enable patients to see how a product feels on their skin, and to check its fragrance and degree of cosmetic elegance. These should be kept clean and neat, and in a manner that makes it easy for the clinic staff to monitor. There is nothing worse than dusty testers or open jars with product residue collecting around the rim, a natural breeding ground for bacteria.

Vendors that offer samples or have travel sizes of key products available are a big plus. Consider keeping samples in an attractive bowl in designated locations for patients to take home and try, or give a sample of a new product with every purchase to allow patients to experience the brand.

lewisIt is helpful to have personalised collateral materials in the form of brochures that explain your skincare philosophy to patients. An order form with your product assortment can also boost sales and make replenishment easier for patients. Finally, adding a shopping cart feature to your website and Facebook page can increase potential sales from existing patients, as well as from outside your clinic.

Is private label right for you?

Another popular option for aesthetic clinics is to develop a private label brand. This does not have to be mutually exclusive; it is better to dispense a clinic branded line while carrying other ranges. However, unless you have a chain of clinics spread out geographically, a national profile, or robust web presence, this strategy should not be your first attempt at product dispensing.

You can investigate the private label option by working with a contract manufacturer to customise a product assortment for your clinic, which allows you to personalise a product range at an affordable cost. Each lab will have a minimum requirement per SKU for an initial order and shipping costs can add up, but the margins can be very attractive. Investing in a quality label and/or customised packaging with the look and feel of your branding will make the products more unique. Avoid the trap of using peel and stick labels that slide off jars or get smudged when wet. Selling a branded range with common packaging, generic product names, and pumps that get clogged, will detract from the overall image of your clinic.

If you are considering developing your own unique formula, be aware that the start‑up costs are substantial. You will need to enlist the services of a contract manufacturer who can handle the project from formulation to finished product.

Forget about marketing your clinic‑branded cosmeceutical line as a road to riches. The days of creating a brand with a doctor’s name on it, and selling it to L’Oreal for huge profits are long gone. Doctors’ brands are not selling at retail as they did in the 1990s, mainly due to the proliferation of medically-oriented skincare. Launching the product line outside of your clinic takes a considerable investment for research and development, packaging, marketing and sales, and ultimately may leave you in a financial hole.

Inventory management

As your clinic’s skincare practice expands, you will need to allocate more space for secure product storage. Products set out in treatment rooms, bathrooms, and patient areas may disappear. Storage spaces should be enclosed to protect your products from dust, dirt, humidity, and exposure to light. They should also be climate controlled to preserve product consistency and limit spoilage. It is wise to allow only key staff members to have full access to the inventory supply to prevent pilferage.

A number of computer programmes are available for inventory control, including dedicated tabletop checkout systems that will keep track of exactly what has been sold and what is in stock. Ubiquitous barcodes that appear on nearly every consumer product will also help simplify this task. Consistent inventory management will also help to avoid running out of products. Outdated, damaged, or unsalable inventory should be regularly checked, debrided and returned for credit if possible. Check with vendors in advance about their return policies for products that are not selling or have passed a reasonable expiration date.

Success factors

As the clinic staff will be responsible for marketing the skincare business and selling products, it is essential to have everyone on board with product selection from the outset. Staff members should also become knowledgeable about all of the products that the clinic offers, including benefits, key ingredients, and how the products work. They should be prepared to answer questions about usage, possible irritants, fragrance and pH. The more involved and familiar that the staff becomes with the products, the more interested they will be in talking with patients about them.

Conclusions

Developing a product-dispensing business in an aesthetic clinic takes time, money and effort to set it up in a professional manner, but the rewards can be substantial. Growing a cosmeceuticals vertical in your aesthetic clinic can enhance your bottom line, complement the services you offer, and increase patient satisfaction exponentially. It’s a win–win situation.