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Electrolysis, the only permanent hair removal method |
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Doctor has financial advice for would-be laser hair removers According to Dr. Paul J. Carniol of the department of plastic surgery at the University of Medicine and Dentistry of New Jersey, New Brunswick, there are a number of hidden cost factors involved in the laser hair removal business that laser manufacturing companies fail to take into account when they are selling their equipment. Chief among the financial scenarios to be investigated by the buyer is the question of “opportunity cost” – the time and space devoted to a new laser, that would otherwise be used for something more profitable. Speaking to his colleagues at a meeting of the American Academy of Facial Plastic and Reconstructive Surgery, Dr. Paul J. Carniol pointed out that the rapid development of new technology is making today’s lasers obsolete within 18 months to 3 years, and “the cost of lasers is dropping like a stone.” He suggested that a three-year cost-benefit plan be drawn up to evaluate the obvious and not-so-obvious factors involved in adding a new laser and procedure to one’s established practice. If the price of the laser is $120,000, the average cost over three years is $40,000 a year. The annual service cost (for the second and third years) will be about $20,000 (the first year is generally free). Advertising will cost a minimum of $10,000 a year, and supplies run around $1,000 a year. Dr. Carniol said that physicians in New Jersey must deliver laser hair removal treatments themselves. But even in state doesn’t have this requirement, I would not leave a nurse alone in a room doing it,” he said. “You’ve got to determine the setting.” Staff costs for a New Jersey physician (rising as the number of treatments increases) will be about $51,000 in the first year and about $61,000 in subsequent years, Dr. Carniol estimates. “On the other side of the equation,” says Dr, Carniol, “you have tax deduction for the equipment, roughly $36,000 a year, plus the patients’ payments, of course,” But it has to be remembered, said Dr. Carniol, “though patients may lose some hairs permanently, they haven’t lost all their hair permanently. And even though they have only one hair where they used to have four, they still have to deal with hair on that part of their body. If 20 percent of your patients demand their money back, or if dissatisfied patients decide not to sign up for a more expensive cosmetic procedure, does the investment still make sense?” Dr. Carniol says the best ways to determine whether your practice would benefit from a hair removal laser is to conduct your own market research, by asking patients, “If I get this, are you interested?” It’s also a good idea to check out the competition and “make sure the market isn’t over subscribed.” “You could rent a hair removal laser once a month, for half a day, and see if the time is quickly filled with appointments. Besides testing the waters, you’ll also be testing the machine. The only way to try it out is to use that laser in your hands,” he said. |
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