“The Aesthetic Industry is Saturated”
“There’s too much competition”
“The market is saturated”
“I can’t compete with non-med pricing”
Are you even an aesthetic practitioner if you’ve never thought these things?!?
You’ve seen another practitioner set up in the same town. Started doom scrolling and Facebook stalking them. Gotten het up and irritate by the things they’re putting in their caption. Been frustrated by the prices they’re charging.
What’s the point?! You might as well quit now!?!
The fact is, competition is part of doing business.
Search Google maps in your area for coffee shops - it’s not a market of one. Similarly super markets, hairdressers, takeaways…
Likewise aesthetics. It’s not an industry with oligopolies…there are no “big players” which prevent others from getting a foothold. The barriers to entry are low, which is why you and thousands of others in the UK have set up an aesthetics business.
Thousands of small, often independent/solo, practitioners carving out part of the market for themselves. Seeding and growing successful businesses.
There is competition. It’s unavoidable. Unless you don’t go in to business.
OK. So what’s the first step in not being bothered by your competition?
Understanding YOUR Market
YOUR market isn’t THE market.
We constantly see reports (often from training providers and product/device manufacturers 👀) that the industry is worth £X billions and is growing X% EVERY YEAR!!
This implies that when you start your aesthetics business you’ll be riding the crest of a wave. And the money will pour in! Happy days!!!
And whilst, globally, these predictions might be true, what is happening in YOUR local area might not be reflective of the global view - due to your local demographic, your microeconomic situation and your location.
It’s worth remembering that building any business is difficult…which is why whilst 64% of people say they want to start a business, less than 10% actually give it a go.
It’s important that you have a good understanding of the addressable market in YOUR area…unless you’re creating an online offering that can be accessed by people across the globe.
The market in Macclesfield is TOTALLY different to the market in Marylebone!
You need to do some quick, bottom-up calculations to estimate the size of the market available to you. All you need it Google, paper and a pencil…and maybe a calculator!
What’s the population of your local town/city/county/the area you think you can draw people in from?
I live on the border between Hereford (approx 200,000 people) and Monmouth (approx 100,000 people)
How many people in your “perfect age category” are there in that area?
Assume my age demographic is 35 - 64
38.3% Herefordshire = 76,000
40.3% Monmouthshire = 40,300
Total = 116,300
How many are realistic “potential” patients?
50% of these are men…not my market
Total = 58,150
It’s a rural/farming area, so many women aren’t particularly interested in injectables - so lets assume 10% may be interested.
That gives us 5,815 women aged 35 - 64 who might be interested in aesthetic treatments.
Given that 200 patients can generate a pre-tax revenue of between £30k and £124k depending on your profit margin, this is more than enough to build a sustainable business in my area.
Most places will have SOME kind of market then? So once you’ve figured out that there IS a market, what comes next?
Understanding the Competition:
The next step is to understand who you’re up against.
Most practitioners are pretty basic with this, deeming their competition to be “aesthetic clinics near me”…when in fact, if you’re offering skincare, laser, injectables, supplements, massage, facials…your competition is much broader.
List as many direct and indirect competitors as you can - Local medic and non-medic practitioners, mobile, salon-based, home-based, clinic-based, high end, affordable, clinic chains, established practitioners, new practitioners, Boots/Superdrug, Amazon…anywhere your potential patients MIGHT go, for ANY of the products or services that you offer, other than you. These are your competition.
Identify 3/4 who are your BIGGEST competition
Pop them into a table where you can document:
Their business name
Their brand (look, feel, sound)
Their perfect personas
Their clinic type
Their treatment offering and pricing
Their social profiles and where they’re most active
Website audit
Brand strengths / weaknesses
Similarities / differences to your brand
This will allow you to build up a view of where your business fits in, in the minds of your potential patients.
Right…so we now know there is a market and we know the key competitors. What comes next?
Crafting a Competitive Advantage
The key thing about analysing your competitors is not that it stresses you out…but that it allows you to really focus in on how you are different to them and to identify the white space that they aren’t occupying…or that you know you do/can do better than them.
There are lots of ways to differentiate your business from your competition.
Differentiate with branding:
Remember that good brands stand out. They don’t blend in. In a very competitive landscape, great branding is an important asset that helps you stand out from the crowd.
Differentiate with offering:
This is the WHAT… WHAT is it you can offer that could really tap into the concerns of your patient base that your competitors aren’t offering?
For the demographic local to me, gateway treatments like mole screening, thread vein treatments and skin tag removal would be more popular than Hydrafacial, for example. Find the white space.
Differentiate with patient experience:
This is the WHO…who are you wanting to attract to your clinic and how can you build a patient experience that works for them?
Some people want quick treatments, no fuss, no chat. Others want discretion and to feel listened to. Others want pampering and luxury.
Curate a memorable patient experience that works for the patient demographic you wish to attract.
Remember that you are not right for everyone.
You win some, you lose some. There will always be some who choose another practitioner who better aligns with them and their ethos. There will always be those who price shop. It’s just the way it goes.
Equally, you really don’t want everyone. Some patients are a pain in the ass!
X You don’t want the people who are swayed by price.
X You don’t want the people who are flaky.
X You don’t want the people who will drown you in DMs.
X You don’t want the people who will not allow you to manage their expectations.
Differentiate with your marketing:
Another way you can differentiate yourself from your competitors is through your content, marketing and choice of channel.
This has to be closely linked to your brand (sound, look and feel) and absolutely has to avoid you re-hashing what other practitioners are doing with their marketing.
Again, the aim of the game is to stand out and be memorable.
Differentiate with collaborations:
Build partnerships with other local non-competing businesses who share the same demographic you want to attract, leverage testimonials and showcase your work to build trust.
It’s clear that there are lots of ways to be “better and different”, but sometimes, it just pisses you off! How can practitioners deal with that?!
Keep your emotions in check
I often see practitioners get in a state about "the competition”. Emotions run high. They see practice they don’t agree with. They see non-meds seemingly flourishing. They see prices they can't match. They see social posts that breach guidelines and they dwell on the unfairness of it all.
Doom scrolling, insta stalking, getting het up on forums.
The harsh fact is…the things your competitors do:
are not in your control
don’t matter to your patients
aren’t illegal
distract you from working on your own business…so actually benefits them!
It’s important to remember that the aim of the game is not to compete with others, it’s to serve your perfect patients exceptionally well.
You will be successful at this when:
You know your patient demographic intimately, your brand is memorable and resonates with your perfect patients - so when they find you, they know you’re perfect for them
You are competent and confident at marketing yourself and your services - so the right people have more chance of finding you
You consistently deliver great outcomes & provide a patient experience that they love - so they review you, recommend you, engage with you on social media and help more people find you
Your pricing is perfectly pitched for your patients and profitability - so you can earn a decent wage and re-invest in your business, making it better for your patients
You spot opportunities and have a bias for getting shit done - so your business constantly evolves and grows
Beware of differentiating with discounts
This is potentially a race to the bottom. It harms your brand and erodes your margins.
Providing discounts for loyalty, referrals or in exchange for marketing content can be a great way to reward paying patients whilst also growing your business. But be mindful of relying on discounts to get bookings. As when this happens, your patients will wait for the discounts and once you’re known for this, it’s hard to change this perception.
It’s important to remember that all the time, energy and headspace spent dwelling your competition is starving your business and your patients of that same time, energy and headspace.
Choose carefully where you invest these finite resources.