Dec 22, 2011
Back in the late 70s, Americans started flocking to gyms. Working out was cool and Americans were intoxicated by the idea of bettering themselves, their physique and their health. Thousands of independent gyms were opened during that time, a new industry whose time had come.
Just a decade earlier in the 60s, the health food revolution slowly began to chug along. Small, local stores like GNC started to franchise beyond their initial reach (in this case Pittsburgh) and people’s behavior started to change as they became aware that they could improve their health outcomes through conscious living choices. The gyms were just another iteration of that inclination.
The early 80s brought a recession in America, as soon as the fledgling industry was finding its feet the cash was yanked from it, and many gyms went bust. Through the 80s and the 90s, more and more gyms were opened, and more and more failed as they never really grasped a successful business model. Memberships were seen as the only way to build income and gyms lived and died by their ability to bring in new members and keep the ones they had.
If we look at the gym landscape today, just 30 years later, it is dominated by chains. Small gyms have, by and large, fallen by the way side as the franchises, backed by capital and marketing knowhow, have proliferated across the country.
So the question is this? Where did gyms go wrong? How could independent gym owners have created better business models for themselves to better serve their local communities? The answer is retail, and if you go into any modern franchise gym it is only too glaringly obvious.
Gyms have hundreds of people coming through their doors every day, and the gym-goer has needs that go beyond memberships. Whether it be protein powders, sports drinks, or workout gear, gyms had a captive audience for retail products but for whatever reason decided to be uncommissioned sales reps for their local GNC, Vitamin Shoppe, health food store or worse still, Wal-Mart.
In 2011, we see a similar issue in the alternative medicine world. The understanding of using natural substances to influence health outcomes is now both a science and an art. Naturopathic doctors are joining other allied holistic health professionals in providing exceptional health outcomes, especially for those with the type of chronic issues Western medicine flounders with.
So, will NDs learn from history? Will they rely on appointments to grow their business? Professional-grade supplements are a good start, but there is further we can go in developing sustainable best practices:
Best Practices for In-Practice Retail
- Only Use Professional Grade Supplements – Encourage your patients to come back into your office to purchase their supplements. Educate them about the products you carry as they rely on your expertise, experience and recommendations. There is peace of mind knowing that you have their health concerns first and foremost in mind.
- Create An Attractive Retail Display – Your reception area is probably the best place for this (NB I did not call it a waiting room). Try and find a space that fits the patient flow and is at the right height for easy display. Merchandising is key here, and working with product lines that understand this will save you a lot of time as they provide easy tools to make it attractive and appealing.
- Keep the Display Relevant – Seasonal displays can be the most effective as they are relevant to the person coming in the door. For example, the patient might not get seasonal allergies but their family members probably do, and so we can make it easy for them to fulfill those needs. Cold and flu season, back to school, and summer hydration can also provide a great basis for relevant displays.
- Make it Interactive –By combining the retail with education, sampling, or both, you provide an atmosphere that is conducive to sales. With iPads, animation, and great content around, not only are the limits being pushed way out, but the barriers to entry are falling away too.
- Train your Staff – Engaging patients when they are in your clinic and finding out what their needs are is crucial and your front desk team should be well versed in this.
There is no better time to start doing this than right now. Holiday gift season is followed by cold and flu, then allergy season is right around the corner. Done right, your retail display will be an income producing asset from the moment you set it up!
James Maskell
James Maskell has been involved in holistic medicine almost since birth, whether he liked it or not. His first chiropractic adjustment was at 15 minutes old, and he consistently responded well to homeopathy during his childhood.
At the University of Nottingham, James studied Economics with a focus on the food and healthcare industries before following a ‘rebellious’ career path in investment banking and markets which proved short lived. His time in banking showed him that world focus on short-termism across all industries, but particularly healthcare and food were costing society in the long run. America has outspent any other nation in health care and yet has been slipping further and further down the world rankings in key health indicators. So, in 2005, James moved to America to help to shift the health paradigm of the country to incorporate true primary care . . . nutrition, exercise, prevention and holistic therapies.
For 18 months, James was instrumental in the running and growth of The Spa on Green Street, a holistic day spa in Gainesville, GA that seeks to be a model for the integration of spa and holistic medicine. As well as excellence in combining therapies for optimal health outcomes, the Spa on Green Street also set a precedent for excellence in personnel management, systems, marketing and modern retail design.
With these skills embedded, James moved to the Northeast in 2007 to help practitioners grow and develop their holistic practices through a partnership with Energetix, a Bio-Energetic remedy and education company based in Georgia. Having helped hundreds of practitioners look at ways to develop strong, sustainable healing practices, James met Dr Andrew Colyer in 2008 and recognized the congruence of their respective visions which lead to the formation of Holistic Practice Development in 2010.
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