Running a Medical Spa 8 Years Ago vs. Today: The Strategic Evolution of Vendor Partnerships, Compensation Models, and Unit Economics

[00:00:06] Introduction & Speaker/Topic Setup

Welcome back to the Business of Aesthetics podcast. Today, we are conducting an operational audit for the established practice owner. I'm your host, Don Adeesha, and it's great to have you here. There's a dangerous phrase in business. We've always done it this way. For a practice that has been open for 5, 8, or 10 years, success can breed complacency. You keep the same vendor contracts, you keep the same low margin services, and you keep the same staff, even when the data may say you shouldn't. To help us break that stagnation, we are joined by Amy Engel. Amy is the owner of Sweet Spot Medispa and has spent the last eight years scaling her practice in the hyper-competitive Florida market. She didn't just grow, she optimized. She pivoted to challenger brands like Evolus to maximize margins and launched her own training academy to solve the recruiting bottleneck. Today we are discussing the art of subtraction. We are going to talk about how to fire a legacy employee who refuses to adapt, how to kill unprofitable services, and why your vendor portfolio might need a complete overhaul. This episode is brought to you by Ekwa Marketing, the digital growth partner behind this podcast and a trusted resource for aesthetic practices looking to dominate their local markets. With that being said, welcome Amy to the Business of Aesthetics podcast.

Thank you for having me on. I'm so glad to be here.

Absolutely. We're glad to have you here.

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[00:01:57] Pivoting from Allergan to Evolus: Margin, Marketing & Loyalty

When you started eight years ago, the Allergan bundle was the standard purchasing model. Today, you have pivoted to become a top 50 partner with Evolus. Was this shift driven purely by clinical preference or was it a necessary financial calculation to protect your profit per unit as the market became more commoditized?

That's a really good question. You are absolutely right. When I started eight years ago, it was the Allergan model, the Botox, the Juvederm, Kybella. That was just eight years ago. But since then, there's been so many new products that have come on into the market. There are six neurotoxins on the market right now that are FDA approved in the U.S. One of those is called Jeuveau, and Evolus is the company that houses Jeuveau. They came out after I was in my business for about two, three years and I was introduced by one of the reps. I was really reluctant to use it because Botox is like the family name. Everybody knows that name. Whenever a new product comes out I always wait and see how it does in the market, see what patients are talking about, see what providers are saying, and also read up on the research and the data.

Jeuveau had been out for a while and one of my nurse practitioners said, hey, let's try it. So she was my model. We tried it and she loved it. She said it worked faster than Botox, kicked in quicker, lasted just as long. The price point was lower than Botox as well. As a business owner that was a very good thing to see because it helped our bottom line. As I brought it on, I realized that Evolus not only provides a great product but they also provide marketing and rewards. Allergan has Allē. Get a Botox injection, receive 200 points, which is like $20 for your next appointment. Jeuveau gives the client $40 on the spot, plus every 90 days. That was a little more appealing. My client trying the product could get a savings immediately.

Then as I got into buying more product I realized they really have a great marketing program. If you buy so many vials in a quarter they give you tools to help you sell that product. Right now we have a billboard on one of the main roads here in town with our name on it and my picture on it, and I already have people coming up to me saying, hey, I saw you on the billboard. They've made a commercial for our business. That was really motivating to use the product more, because Allergan doesn't do that. So I started converting my patients from Botox to Jeuveau. I made the price point a little bit lower; however the bottom line was better. They got a reward each time. I was happy with the marketing. So it just kind of exploded from there. Not everyone loves Jeuveau and not everyone loves Botox, but it's great to have a variety. I do have some clients that have used Botox in the past and feel like it's just not working as well as it used to. That's a good opportunity to move them to Jeuveau. We still use Botox.

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[00:06:14] The Top 50 Partner Advantage

Being a top 50 partner with a challenger brand like Evolus, does that give you a seat at the table with their leadership that you never had with a giant conglomerate like Allergan? How does that benefit your bottom line?

What I love about Evolus is that they do show appreciation to their top 50. If you're in the top 50, that means you've sold more, bought more of their products than others in the market. When we say top 50, we mean all the medispas, plastic surgeons offices, primary care offices that supply Jeuveau. We were top 14 about two years ago. That's pretty neat, and that's in the entire U.S., including Alaska and Hawaii. They do reward you. They send you to a training conference. They really go all out. They just really spoil us. But that's not the reason, the reason is the product. I love it. It's great for my clients. They love it. The bottom line is good. My providers love it. We carry five of the six on the market. When I walk into a room and a client asks me, so what's the best one, I'll say there is no best one, but there is a best one for you. You'll have to try what works best for you. But if you want to know, I'm wearing Jeuveau. So I always say I'm wearing Jeuveau. That's how I really present it in the spa.

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[00:08:49] Hiring, Training & Charging for the Training That Used to Be Free