By: David Lienhardt

Today there is obviously a lot of attention on the current state of the economy.  There have been incredibly wild swings in the stock market, with the Dow Jones down nearly 5,000 points from its high a year ago.  The housing bubble seems to have burst as many have experienced a significant decline in the valuation of their properties from the peak.  The unemployment rate seems to have been steadily increasing.  The real question is, are we really in that bad of shape? Let’s take a closer look.
 
As if running our Lasik program wasn’t challenging enough, now we have we have to deal with the “perception” that the economy is horrible.  Contrast today’s perception to that of just a year or so ago.  Aside from gasoline prices, in 2006 the general public’s perception about the economy was that it was quite rosy.
 
Here are a couple of interesting points to consider when it comes to perception:

• Today’s unemployment rate stands at 6% and the headline reads, highest unemployment rate since 2003.
• In 1987, the unemployment rate also reached 6% but that headline read lowest unemployment rate in over 8 years.
• Today’s average interest rate on a 30 year fixed mortgage stands at 6.46%.
  
• In 1987, the average interest rate on a 30 year fixed mortgage stood at 9%
  

I bought my house in 1995 at a price of $135,000.  In 2001, I had it on the market for nearly a year with an asking price of $225,000.  I finally sold it, but was only able to get $175,000 for it.  In 2004 (3 years later), the person who bought it from me sold it for $452,000.  The house recently went on the market and sold again.  The asking price was $340,000 and it sold for $310,000.  Although the person who bought it at $452,000 lost a considerable amount of money, from my initial investment only 13 years ago – I would have tripled my money.  Even going by what it sold just recently for, it still would be more that twice my original investment.
 
The reality here is that for most people, things haven’t changed a whole lot.  Sure, current stock market conditions have hurt the value of our 401K accounts, but has that really changed our day to day standard of living?  The media has a done a good job, as they always do, with sensationalizing current events and now “the economy” seems to be a common discussion amongst us all.
 
Okay, so what does all of this mean?  What it means is that it’s all about perception!  The media has sold the perception that our economy is horrible.  Look, I’m not saying that there aren’t things that need attention in our economy.  The reality though is that most of us are much better off than we were 5, 10, 15 or 20 years ago.
 
Now, what do we do?

Well to start, we must NOT give into the hype that the sky is falling. The future success of our practices is directly relational to how diligent we remain in managing them.

I understand the reaction some may have by looking for ways to reduce overhead. Frankly, I routinely go over my P&L looking for ways to lower the cost of doing business.  However, these decisions should be the result of methodical business planning – not just pulling the plug because the media has spooked you into it.

Keep this in mind – People are still going to have their hot points. 
If you’ve always wanted a brand new HDTV television, that desire isn’t going to subside
Therefore, those people who have always wanted Lasik – Still want Lasik

It's still up to us to interrupt, engage, educate and help them prioritize.

Keys to Success:

• If it’s not broke, don’t fix it. 
• Motivate your team – Keep them focused on delivering the absolute best
• Continue marketing strategies that have proven their return on investment
• Be creative and constantly look for ways to generate new leads
• Most of all – Deliver beyond the expectations of your patients

Some Additional Ideas:

• If you have a television in your waiting area, make sure it’s not tuned to a news station.  Your patients don’t need to be reminded by the media that it’s doom and gloom.
• Make sure that any magazines you may have in the waiting areas don’t have huge sensational articles about how the economy is falling apart. (Time, Newsweek, etc.)
• Make sure you staff STOP talking about the economy or their 401-K’s or anything that has a negative connotation.

This article was written and contributed to Refractive.com by David Lienhardt, Administrator at Florida Vision Institute in Stuart, FL. He can be reached at (772)-283-2020 Ext. 303.