How long would it take for a pair of new Gucci shoes to sell in a Value Village at full price?
The answer is “they would never sell.”
Even if they were discounted by 20 or 30%, selling a $1,000 pair of shoes in a Value Village would never happen, even if it could be perceived to some as a bargain. But those same shoes sell every day in Gucci stores, at full price.
I would bet an item from Value Village would experience the same fate in a Gucci store that the Gucci shoes would face in the Value Village.
This is a function of consumer expectations aligning with product sales.
And it relates to dentistry and exit planning.
Consistency of brand awareness creates expectations. Those expectations attract and retain right-fit customers. Value Village has found an important place in the market as a thrift store. Customers who shop at Value Village have come to expect and appreciate that they can stretch their dollar and find some great items without breaking the bank. Gucci has created a global following of high quality fashion that is also a valued status symbol of those who seek it out.
Both sell clothing.
How these two companies communicate with their intended audience is so different that the likelihood that one of their products would or even COULD sell in the opposing store is near impossible.
When you look at metrics in your business like annual revenue per patient, or proportionate hygiene production, or production by procedure, it reflects how you show up, how your team communicates, how your practice is perceived in the community you serve, and what drives your treatment planning. All of these factors affect practice income, practice value, and business attractiveness from a buyer’s point of view. For example, is treatment dictated by insurance coverage or by what is in the best interest of the patient’s oral health?
Often dentists expect to sell their practices at best-in-class industry prices but don’t realize there are aspects of their practice that affect this being successfully attained.
The last three years of your practice’s performance are what I call “The Legacy Years”. This is where value is determined. Exit planning gives you the control and capability to position your practice in a market that is aligned with your expectations. But if you wait until a year or two before your exit, you risk trying to sell Gucci shoes in a Value Village.
