The practices that succeed in 2009 will be the ones that are the best in their categories. That means they will be the best in selling, best in patient care and customer service, best in positioning themselves, best in describing themselves and best in creating a following. These excellent practices will take tons of market share away from "lesser" practices, potentially putting them out of business altogether.
This is so for two reasons. First, in a contracting economy, there is less business to go around so "survival of the fittest" applies. Second, savvy marketers know that this is not the time to cut the marketing budget or hold off on improving the look and feel of the physical facility. If anything you need to spend more on marketing in difficult times and go on with remodeling or moving to create a better atmosphere, attract new patients and boost your average sale.
Our current clients are doing things like:
1. Taking over the space next door, doubling the size of their optical and getting their displays built for 25% less than they would have paid a year ago. (The fixture manufacturers are hungry and willing to work for less.)
2. Buying new office condominiums at bargain prices with generous build-out allowances
3. Starting a brand new practice in a middle to upper income area with low rent, $30,000 build-out allowance and free rent for the first 4 months.
4. Buying an empty foreclosed medical building at a great price, using 60% of the existing improvements for their practice and spending less on construction.
All these folks are stepping up their game while most others are running scared. They are getting good value for their construction dollars. Within the next six months they will have stunning new offices that will attract new patients and tease more high end sales out of existing patients. Their competitors with old tired offices will go on grumbling about how bad things are and lose business to those with newer and better offices.
By the time these new offices open their doors, it's likely that the economy will be improving and these practices will get carried upwards on the rising tide. Consumers will want to make sure they are getting great value for their money as they cautiously open the pursestrings. Why should they go to a ho-hum office when there's a newer "wow-you" office in the area? Why should they settle for the same old experience in a so-so place when they can have a great experience in a really special place?
When it comes to my own business I am optimistic, courageous and action-oriented. I believe that when you strive to be the best and do not listen to the nay-sayers you always win in the long run. When the herd zigs, I zag. It's no surprise that our clients have the same attitude.
I love working with positive confident people helping them realize their vision of being the most successful practice in town. Next year there will be some practices who don't survive while those who differentiate themselves with true excellence will thrive. Which will you be?
Showing posts with label Why Would I Use You?. Show all posts
Showing posts with label Why Would I Use You?. Show all posts
December 9, 2008
January 4, 2008
Construction Costs - Reality vs. Wish
When people call me to talk about building a new office, one of the questions I ask is, "How much per square foot have you budgeted for construction?" The answers mostly range from "I don't know" to $50 per square foot, which is way too low for an all-new interior build-out.
My rule of thumb for estimating construction costs is to figure $100/SF or more for interior only projects. If a client budgets for that amount and it comes in under, then we celebrate. For new buildings you can figure $250 per square foot or more.
Florida is one of the most expensive places to build, topped only by California and New York.. The last project I did in Florida, which was completed in the spring of 2007, came out to $125/SF. And that was for a very simple, no-frills design!
When you are planning a new practice you need to be informed on the realities of construction and design costs. People in the midwest and rural areas like West Texas can often get their construction done for less. But just about anywhere on the East Coast or West Coast it's always higher than you thought it would be. I'm hoping that my projects that are going out for bid in the next month or two will come in for less than last year's average. That's because there's less construction going on and more competition among the contractors now at the start of 2008.
You have to keep in mind that we work almost exclusively with clients in zip codes where at least two out of the top five lifestyle groups have a median income of $75K or more. When all the median income figures fall below $50K, we may not be the right design firm for the project. We don't go overboard with expensive finishes, but we do design to high quality standards that perform well for our clients for 15 to 20 years or more. Quality does not come cheap.
The point is you must do a lot of planning and research when it comes to opening a new practice or moving your existing one. Make sure you get realistic average construction cost figures for your area. If you are going into a higher income area that fits our profile, you can call me and I'll tell you what the latest "BWD Construction Cost Index" is.
Don't be discouraged if the numbers don't look like they will work out the first way you try. You may have to look for a smaller space or a place with lower rent. If you want to attract higher income patients, you can't skimp on construction costs, but there may be another strategy you can employ to make your project work.
My rule of thumb for estimating construction costs is to figure $100/SF or more for interior only projects. If a client budgets for that amount and it comes in under, then we celebrate. For new buildings you can figure $250 per square foot or more.
Florida is one of the most expensive places to build, topped only by California and New York.. The last project I did in Florida, which was completed in the spring of 2007, came out to $125/SF. And that was for a very simple, no-frills design!
When you are planning a new practice you need to be informed on the realities of construction and design costs. People in the midwest and rural areas like West Texas can often get their construction done for less. But just about anywhere on the East Coast or West Coast it's always higher than you thought it would be. I'm hoping that my projects that are going out for bid in the next month or two will come in for less than last year's average. That's because there's less construction going on and more competition among the contractors now at the start of 2008.
You have to keep in mind that we work almost exclusively with clients in zip codes where at least two out of the top five lifestyle groups have a median income of $75K or more. When all the median income figures fall below $50K, we may not be the right design firm for the project. We don't go overboard with expensive finishes, but we do design to high quality standards that perform well for our clients for 15 to 20 years or more. Quality does not come cheap.
The point is you must do a lot of planning and research when it comes to opening a new practice or moving your existing one. Make sure you get realistic average construction cost figures for your area. If you are going into a higher income area that fits our profile, you can call me and I'll tell you what the latest "BWD Construction Cost Index" is.
Don't be discouraged if the numbers don't look like they will work out the first way you try. You may have to look for a smaller space or a place with lower rent. If you want to attract higher income patients, you can't skimp on construction costs, but there may be another strategy you can employ to make your project work.
November 2, 2007
Food for thought from a recent SCORE, "Counselors to America's Small Business" newsletter
I found a fascinating interview with business writer and lecturer Dan Pink in a recent SCORE (Counselor's to America's Small Business) newsletter. He says, "you can’t compete by process or economies of scale, but you can differentiate yourself through design, storytelling, the ability to see the big picture, and empathy."
Q: You stress the importance of design in right-brain thinking. What does that mean?
A: It's not solely about image. Design is utility enhanced by significance. You understand who your customers are, what they need and why, and what it takes to give meaning to your product or service. For example, many studies have found that the environmental aspects of health care facilities can enhance the healing process. Now, these facilities are being built with more natural light, meditative gardens, and other features to enhance the patient's experience.
Q: How does the design concept apply to small businesses?
A: Small business owners should be more attuned to a high-concept design because for them, it's a matter of survival. How you position yourself and the processes by which you serve your customers are all design decisions because they differentiate your business from something that may otherwise be perceived as a commodity. Many functions that professional services firms used to provide are now automated—e-filing taxes or checking mortgage rates online, for example. A high-touch approach may be your only way to offer customers something they can't find anywhere else.
Q: How can a small business owner develop design literacy?
A: Do things to enhance your sensibility to design, such as keeping a design "diary." Jot down any examples of good and bad design—whether it's a store layout or a company's customer service process—and review them periodically. That kind of awareness sharpens your eye and enhances your level of understanding.
To view the newsletter in its entirety, visit:
September SCORE Expert Answers
Q: You stress the importance of design in right-brain thinking. What does that mean?
A: It's not solely about image. Design is utility enhanced by significance. You understand who your customers are, what they need and why, and what it takes to give meaning to your product or service. For example, many studies have found that the environmental aspects of health care facilities can enhance the healing process. Now, these facilities are being built with more natural light, meditative gardens, and other features to enhance the patient's experience.
Q: How does the design concept apply to small businesses?
A: Small business owners should be more attuned to a high-concept design because for them, it's a matter of survival. How you position yourself and the processes by which you serve your customers are all design decisions because they differentiate your business from something that may otherwise be perceived as a commodity. Many functions that professional services firms used to provide are now automated—e-filing taxes or checking mortgage rates online, for example. A high-touch approach may be your only way to offer customers something they can't find anywhere else.
Q: How can a small business owner develop design literacy?
A: Do things to enhance your sensibility to design, such as keeping a design "diary." Jot down any examples of good and bad design—whether it's a store layout or a company's customer service process—and review them periodically. That kind of awareness sharpens your eye and enhances your level of understanding.
To view the newsletter in its entirety, visit:
September SCORE Expert Answers
November 11, 2006
Why Would I Want To Use You?
Q. Why would I want to use you? Most of the optical display companies will do free floor plans. My builder will do all the other drawings from there.
A.That's an excellent question so let me take the time to give you a thoughtful answer.
You are right, anybody can give you a plan. It's like the old joke about doctors: "Do you know what they call the guy who graduates dead last in his class in medical school?... they call him doctor." Yes, anybody can draw you a plan.
My plans do two things better than anybody else's plans: 1) make the most money possible, every year, for the life of the office and, 2) give patients and staff a great feeling about being in the space that goes beyond the lighting, the colors, and the style.
Some people think so much of my designs that when they want to sell their practice they advertise it as a "Barbara Wright designed office." Once a practitioner has had me design a space for them they often have me do their second, third and all their succeeding offices. (My clients tend to be very successful people.)
My initial design helps them to outgrow the first office so they can step up with confidence to a bigger one. This is true especially if they value their time during the planning process, want to increase their profit per square foot and value the feel of their space no matter what the size.
These days managed care is forcing every practice to operate at peak efficiency or be left in the dust. Your level of efficiency is either built-in or botched in the floor plan design. If you make mistakes in your floor plan, you'll have to live with them for the next 10 years or more because they are too costly or downright impossible to correct later.
Some people, however, save a few dollars, get a free floor plan design and never realize what it cost them. They may have saved a few thousand dollars up front by not using me but passed up the typical 20% to 30% increase in profit possible from one of my designs vs. the free one done by a “no-name” designer.
Let's be conservative and say that the average additional profit from my design is just $200. per day. If a practice is open 20 days per month that's an extra $4,000. per month or a total of $48,000. possible profit increase in the first year alone. Over a 10-year office life span, that means $480,000. that never materializes, all because they tried to save a few bucks.
I recently spoke with a client whose office I designed four years ago. He reported that the practice experienced a 25% increase in the first year alone, but subsequently has grown another 25% in the second and third year, as well. It looks like the fourth year will be the same story. This phenomenal growth went way beyond his expectations.
Those “free” designs are offered by fixture manufacturers with the expectation that you will buy the company’s pricey products. Most practitioners realize that the plan is not really free and that it's liable to be worth little more than what you paid for it.
If you are in a moderate to low income area, have a very small space to work with, have no concerns about staff turnover, and have no intention of optimizing your profit per square foot of floor space... then you don't need me.
If optimizing your profit and the feel of your space is critical for you then I am the best deal going and we should talk further. This is especially true if your time is worth the $500+ per hour that I suspect it is and your specialty is not office design; it takes precious few mistakes to blow both your budget and your time.
If you still want to try doing it yourself, my book Ophthalmic Office Design Guide can help you. But if you want to be certain your new office will be a model of efficiency that pulls in maximum revenue for you, then give me a call toll-free: 888-422-0361
Let's discuss your project and your goals. Then you can make an informed decision on whether investing in top-notch office design makes sense for you.
A.That's an excellent question so let me take the time to give you a thoughtful answer.
You are right, anybody can give you a plan. It's like the old joke about doctors: "Do you know what they call the guy who graduates dead last in his class in medical school?... they call him doctor." Yes, anybody can draw you a plan.
My plans do two things better than anybody else's plans: 1) make the most money possible, every year, for the life of the office and, 2) give patients and staff a great feeling about being in the space that goes beyond the lighting, the colors, and the style.
Some people think so much of my designs that when they want to sell their practice they advertise it as a "Barbara Wright designed office." Once a practitioner has had me design a space for them they often have me do their second, third and all their succeeding offices. (My clients tend to be very successful people.)
My initial design helps them to outgrow the first office so they can step up with confidence to a bigger one. This is true especially if they value their time during the planning process, want to increase their profit per square foot and value the feel of their space no matter what the size.
These days managed care is forcing every practice to operate at peak efficiency or be left in the dust. Your level of efficiency is either built-in or botched in the floor plan design. If you make mistakes in your floor plan, you'll have to live with them for the next 10 years or more because they are too costly or downright impossible to correct later.
Some people, however, save a few dollars, get a free floor plan design and never realize what it cost them. They may have saved a few thousand dollars up front by not using me but passed up the typical 20% to 30% increase in profit possible from one of my designs vs. the free one done by a “no-name” designer.
Let's be conservative and say that the average additional profit from my design is just $200. per day. If a practice is open 20 days per month that's an extra $4,000. per month or a total of $48,000. possible profit increase in the first year alone. Over a 10-year office life span, that means $480,000. that never materializes, all because they tried to save a few bucks.
I recently spoke with a client whose office I designed four years ago. He reported that the practice experienced a 25% increase in the first year alone, but subsequently has grown another 25% in the second and third year, as well. It looks like the fourth year will be the same story. This phenomenal growth went way beyond his expectations.
Those “free” designs are offered by fixture manufacturers with the expectation that you will buy the company’s pricey products. Most practitioners realize that the plan is not really free and that it's liable to be worth little more than what you paid for it.
If you are in a moderate to low income area, have a very small space to work with, have no concerns about staff turnover, and have no intention of optimizing your profit per square foot of floor space... then you don't need me.
If optimizing your profit and the feel of your space is critical for you then I am the best deal going and we should talk further. This is especially true if your time is worth the $500+ per hour that I suspect it is and your specialty is not office design; it takes precious few mistakes to blow both your budget and your time.
If you still want to try doing it yourself, my book Ophthalmic Office Design Guide can help you. But if you want to be certain your new office will be a model of efficiency that pulls in maximum revenue for you, then give me a call toll-free: 888-422-0361
Let's discuss your project and your goals. Then you can make an informed decision on whether investing in top-notch office design makes sense for you.
Subscribe to:
Posts (Atom)
