Inside Aesthetics Ep 185 The Global Economical Crisis & it's Impact on Aesthetics | Babak Moini
Episode 185 hosts Babak Moini (Co-founder of Laser Clinics Australia)
Babak previously joined us back in episodes 45 and 59, where he shared his story and his predictions for what the COVID-crisis would mean for aesthetic businesses.
Two years on, we reflect on the post-COVID era and the current as well as predicted global economic crisis that is looming.
We explore:
- Babak's current view of the Australian aesthetic market
- Some of the key trends that have emerged since our last podcast
We then discuss the financial issues including:
- Whether the predictions he made in April 2020 were right, wrong or are simply delayed and still going to happen
- The post-COVID demand for injectables and what this showed about the resilience of the market
- What our governments did to cope during COVID and the hang over effects of these including:
- stimulus payments and printing money to fund it
- borrowing more money, increasing national debt
- the effect of lockdowns & stimulus payments on the labour force
- why this has caused hyperinflation, climbing interest rates and the implications of these problems
We then brainstorm some countermeasures that clinics can take including:
- How to audit your business and better understand your margins and profitability
- How to improve cash flow
- How to negotiate with suppliers
- Managing debt
00:00 Introduction 01:03 Industry Changes Since the Pandemic 04:55 Rising Costs and Staffing Challenges 10:59 Competition Increasing Across Clinics 18:27 Why Prices Have Not Kept Up With Costs 26:25 The Problem With Constant Discounting 33:29 Understanding Loss Leaders and Value Proposition 41:37 Why Many Clinics Are Not Profitable 48:53 Knowing Your Break Even and Financial Numbers 52:09 Managing Cash Flow and Business Risk 61:45 Client Acquisition Costs and Marketing Strategy 68:49 Building a Strong Brand and Patient Experience 76:38 Why Not Every Clinic Will Survive 80:09 Long Term Industry Consolidation Ahead 86:34 Advice for New Clinic Owners 90:43 Final Business Lessons and Wrap Up