Why 2013 May Be a Big Rebound Year -
Get Ready
According to the ADA's
website, dentistry as a whole has shed 18% since March of 2008. Many of you
haven't seen that drop. But for every dentist that hasn't seen that kind of a
drop, another dentist has experienced a greater than 18% drop in the past 4
years. It's just simple math.
NPI has been doing this a
long time. And, you probably already know that we have statistical analysis on
most things related to consumers and dental revenues. With every recession in
history, there is a rebound. As we've written numerous times in almost every
major trade journal in dentistry these past four years - this particular
recession is interesting and unique when compared to others in the past 25
years.
This recession, or the
reason why it is hanging on so long, is being prolonged (primarily) by the lack
of consumer borrowing power. Remember 2002 through 2007 when everyone in the
country racked up credit card debt and paid it off with home equity? Well, that
home equity vanished in 08. That's where the majority of your elective dental
procedures went. Poof!
There are five main general
reasons why 2013 could be a big rebound year for dentistry. They are as follows.
1. Presidential election: Every presidential election
cycle causes consumers to hold off spending. Usually from June through December
of an election year. This is nothing new. This is not tied to the overall
recession. But it is a fact. Consumer spending will slow down until a decision
is made the first week of November 2012. Regardless of who wins the election,
once the election is over, there will be an economic rebound from pent up
demand.
2. Who wins the election will make a difference: This is
not a political blog. We are not taking sides. We are not debating ideological
points or economic principle. If one side wins this election, there will be a
slight bump in dentistry in the first quarter of 2013 from the pent up demand
created by the election cycle itself, then things will flatten out. If the
other side wins this election, there will be slow steady uninterrupted growth
for dentistry throughout the year.
3. Housing Prices are stabilizing: Consumers haven't
stopped wanting to spend. They just stopped being able to run their credit up
to historic levels. Look around you. Look at the housing numbers around the
country. For the majority of the country, housing prices have stabilized. It
may be another few months before prices start to tick up, but for most of the
country - the floor has been found. This bodes well for future consumer
spending.
4. Interest rates are still historically low: This will
further clear out the housing market and balance the supply and demand. This
also allows more people to fund more elective treatment within the window of
months just ahead of us.
5. What happens to teeth and gums that are ignored for
five years? Do you see the balloon of emergency treatment, extractions,
implants, perio, sedation, and dentures coming?
Oh, it's coming!
What should you do?
If you are already promoting
to the right segment of the dental market surrounding your practice and you
have been consistent with it through this recession - you are WAY ahead. ALL
those consumers who know about you through your promotion, but have yet to call
- will call in greater numbers and greater quality!
If you went through the
recession with little/no promotion or inconsistent promotion, establish your
momentum now!
If you are not sure what to
do, you can call us to chat, you can complete an online survey and have us
build a marketing plan, you can read our latest book, or you can take our
online CE.
All of you, to some degree,
have been challenged by this recession. It's time to set up for the rebound.
Got questions? Want to learn
more?
You can reach Mark &
Howie at:
Howie: whh@newpatientsinc.com
Contact
Us
New Patients, Inc.
The marketing firm
exclusively for dentists
866-336-8237
Corporate offices:
Oquendo Business Park
5935 Edmond Street
Suite 105
Las Vegas, NV 89118
Office: 702-221-2184
Fax: 702-252-3958
Pacific Time Zone
No comments:
Post a Comment