Raymond Cooner, owner of ChiroFirst of Washington, discusses scaling his chain of chiropractic clinics from one to six locations in Seattle. He shares insights on innovative patient acquisition techniques, like free consultations, while tackling marketing challenges using Facebook and Google ads. Cooner explains the importance of understanding customer pain points and optimizing operational efficiency. The conversation also highlights the financial dynamics of chiropractic care, navigating insurance complexities, and strategies for attracting private equity.
Raymond Cooner's chiropractic clinics thrive on a unique revenue model that combines recurring income with effective marketing strategies, focusing on targeted ads.
To scale effectively, Raymond aims to enhance lead generation and streamline sales processes while introducing standardized training across his clinic locations.
Deep dives
Business Overview and Target Market
Raymond Cooner operates a chain of six chiropractic clinics in the greater Seattle area, generating approximately $5.2 million in annual revenue with a 23% net profit margin. The clinics primarily cater to employed individuals aged 35 to 65, addressing issues such as pain, discomfort, and mobility loss. Their approach includes creating customized treatment plans that span 60 to 90 days, which often involve chiropractic care and a unique spinal decompression therapy that sets them apart from competitors. Their revenue model relies heavily on recurring income, with initial packages priced between $2,400 to $3,600, alongside larger case values from incidents like car accidents which can reach up to $10,000.
Lead Generation and Sales Process
The clinics utilize targeted paid advertising, primarily through Facebook and Google ads, spending between $1,500 to $2,000 per location monthly to generate leads. On average, they receive about 35 leads per month, with a strong show rate of 80% and a closing rate of 71%. The sales process is defined by an initial free consultation, where patients undergo assessments, including x-rays, before the clinic presents financial treatment plans. However, inconsistencies in lead flow and challenges with verifying diverse insurance plans complicate the sales process, affecting the overall efficiency.
Challenges in Scaling and Marketing
Raymond identifies lead flow and sales infrastructure as major constraints to scaling his business effectively. As the clinic has expanded, maintaining consistent marketing performance across multiple locations has become increasingly complex. The reliance on a variety of insurance plans introduces variability into the sales process, making it more difficult for the staff to adapt quickly without centralized training. Furthermore, while higher revenue facilities tend to exhibit stronger performance, discrepancies in patient demographics and case values among locations hinder overall profitability.
Future Goals and Strategic Improvements
Raymond's goal is to reach $5 million EBITDA within three years and explore the possibility of attracting institutional buyers for the business. To achieve this, he plans to enhance lead generation strategies, optimize the sales process, and streamline operational excellence across locations. Proposed actions include increasing ad spend to improve lead generation and refining the sales process to enhance case acceptance rates. Furthermore, introducing standardized training for staff could minimize inconsistencies and leverage successful practices observed in higher-performing clinics.
Welcome to The Game w/ Alex Hormozi, hosted by entrepreneur, founder, investor, author, public speaker, and content creator Alex Hormozi. On this podcast you’ll hear how to get more customers, make more profit per customer, how to keep them longer, and the many failures and lessons Alex has learned and will learn on his path from $100M to $1B in net worth.