Rising inflation is presenting challenges for both clinics and clients in the aesthetics industry. With the cost of living increasing, it’s important for clinics to strike the right balance between price alignment, client affordability, and injector income. However, any adjustments must comply with Therapeutic Goods Administration (TGA) guidelines, particularly when it comes to advertising, pricing, and offering treatments.
In this article, we explore how clinics can adapt to the current economic climate while remaining within TGA regulations, ensuring clients’ trust is maintained and the business thrives.
1. Price Alignment: Reflecting Costs Without Losing Clients
Inflation is driving up the cost of operational expenses such as products, rent, and wages, but clinics need to be cautious when adjusting their prices to avoid contravening TGA regulations.
Reviewing Prices Transparently: Clinics should regularly review their pricing structure in response to rising costs. When raising prices, it’s important to communicate clearly with clients. However, under TGA guidelines, avoid advertising “special offers” or using pricing as a promotional tool for regulated products like Botox or dermal fillers.
Communicating Value (Without Breaching Guidelines): Focus on educating clients about the high quality of your service, skilled injectors, and the safety measures in place. You can highlight these aspects to justify any necessary price increases, but ensure that you don’t promote specific therapeutic products in a way that breaches the TGA’s advertising guidelines.
For Clinics: Keep clients informed of any price changes, ensuring that communication focuses on service quality rather than promotional offers linked to therapeutic goods.
2. Client Affordability: Keeping Treatments Accessible While Complying with TGA Rules
In a tough economy, keeping treatments affordable is key, but all promotional activities must adhere to TGA regulations, particularly when discussing prescription-only products like injectables.
Payment Plans Without Incentivising: Offering flexible payment options, such as payment plans or financing, can help clients manage costs. However, it’s important to ensure that these plans don’t incentivise clients to undergo treatments for therapeutic goods in a way that breaches TGA guidelines.
Tiered Treatment Options (Non-Therapeutic Focus): Clinics can create packages or tiered treatment plans that focus on non-therapeutic services like skin rejuvenation, peels, or non-invasive body contouring, which are not regulated by TGA in the same way as injectables. This allows clients to access a range of affordable services, while still adhering to compliance rules.
For Clinics: While offering flexible payment options is valuable, avoid promoting therapeutic products such as Botox or dermal fillers with financial incentives or pricing deals.
3. Increasing Income for Injectors Without Breaking TGA Guidelines
Inflation affects injectors too, so finding ways to increase their income is important. However, any strategies for upselling or cross-selling treatments must comply with TGA’s strict rules on advertising and promotion of therapeutic products.
Upselling and Cross-Selling (Non-Therapeutic Focus): To boost injector income, focus on upselling treatments that are not governed by TGA guidelines, such as facials, skin peels, or non-invasive treatments like laser therapy. Avoid upselling treatments like Botox or dermal fillers in ways that imply they are “better deals” or offer superior results compared to standard care.
Loyalty Programs for Non-Regulated Services: Creating loyalty programs or bundled treatment packages is an effective way to retain clients and increase revenue. However, ensure that these programs don’t involve regulated products like Botox or fillers, as the TGA prohibits discounting or bundling of prescription-only treatments.
Ethical Commission-Based Pay: Clinics can offer commission-based income models for injectors, but it’s essential to avoid incentivizing the promotion of regulated products. Keep commission structures focused on services like consultations, skincare treatments, and other aesthetic services that are not restricted by TGA rules.
For Clinics: Ensure injectors understand TGA compliance, particularly when discussing treatment plans with clients, to avoid any promotion of therapeutic goods that breaches guidelines.
4. Managing Rising Costs Without Violating TGA Regulations
As inflation drives up operational costs, clinics must find ways to maintain profitability without compromising on compliance with the TGA’s advertising and promotion standards.
Operational Efficiency: Streamlining clinic operations can help reduce costs without affecting pricing. This could involve negotiating with suppliers, optimizing appointment scheduling, or minimising product waste—strategies that won’t infringe upon any TGA rules.
No Promotional Discounts on Regulated Goods: Under TGA guidelines, clinics are prohibited from offering discounts or special promotions for treatments involving prescription-only products. Therefore, any cost-saving measures must be carefully planned to avoid suggesting reduced pricing on Botox, dermal fillers, or other regulated injectables.
For Clinics: Focus on improving efficiency and reducing unnecessary expenses, ensuring all advertising and promotional efforts remain compliant with TGA regulations.
5. Client Retention: Building Long-Term Relationships While Following TGA Guidelines
Retaining clients is vital during challenging economic times, but clinics must be careful to adhere to the TGA’s rules when promoting treatments and maintaining client loyalty.
Exceptional Client Care: Focus on delivering high-quality, personalized care that makes clients feel valued. Positive experiences and trust in your clinic are the best ways to retain clients without relying on promotions that could breach TGA rules.
Referral Programs (Non-Therapeutic Focus): While referral programs can be effective for growing your client base, ensure that they don’t incentivize treatments involving regulated products. Instead, focus on rewarding referrals with consultations or skincare treatments that fall outside TGA’s strict regulations on therapeutic goods.
For Clinics: Prioritise high-quality care and client satisfaction to build loyalty without breaching promotional rules for therapeutic products.
Conclusion: Pricing Strategies in Compliance with TGA Guidelines
With rising inflation, it’s more important than ever for clinics to manage pricing, operational costs, and injector income carefully. While finding ways to increase revenue is essential, clinics must also adhere to TGA guidelines, ensuring that promotions, pricing, and treatment recommendations remain compliant.
At Aesthetics Recruitment Australia, we understand the challenges of navigating inflation while maintaining compliance with TGA regulations. Our recruitment services help you find skilled cosmetic injectors who are knowledgeable about TGA guidelines and dedicated to providing high-quality care. Let us help you build a team that thrives in a challenging economic environment without compromising on compliance.
Ready to find the best talent for your clinic? Contact Aesthetics Recruitment Australia today and let us support you in building a compliant, successful, and thriving team.
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