The REAL Sales Lesson from the Netflix “Debacle”
November 15th, 2011 Here’s a summary of analysis of situation by Don Cooper, The Sales Heretic. Love this update on the old “Kodak Study” Great lesson for dentists to pay close attention to. Set yourself up to practice they way YOU want to practice and avoid the heartburn of working with managed care programs. Dentistry will remain a joy for you & your patients will appreciate and thank you!
Much has been said and written about Netflix’s decision over the summer to raise their monthly full-service subscription fee from $10 to $16. Netflix lost 800,000 subscribers in the following months. Before the price increase, Netflix had 24.6 million subscribers.Which means Netflix raised their price by 60% and only lost 3.2% of its customers. 24.6 million customers at $10 each is $246 million. 23.8 million customers at $16 each works out to $381 million. In other words, even with the loss of nearly a million subscribers, Netflix has increased its monthly revenues by $135 million! A whopping 54%!
So what’s the real sales lesson here? Don’t be afraid to raise your prices.You won’t lose as many clients as you fear you will. In fact, you may not lose any. And even if you do lose some of your customers, you’ll still come out ahead thanks to the larger profit margin. Too many people and companies undervalue what they sell and undercharge as a result. Insufficient profit margins will doom your business. If you produce a quality product or service, charge appropriately. People will happily pay it.
“We have worked with Ginny since 2006, and Ginny has helped us hire and develop our new manager, develop our administrative team, and helped us create clinical and marketing systems that have produced these results. Ginny has a keen eye for analyzing practice data with her monitors that identify where your purpose and focus must be.”
“We hired Ginny to do Practice Analysis and Staff Development and she was superb at focusing on our Practice Strengths and on areas we needed to develop to a higher level. Ginny is the consummate professional, as well as a caring and personable up-beat motivator.”
“Practice Management Consultant doesn't define Ginny Hegarty very well because you can't paint her with a single stroke. Leadership Coach, Key Team Member, Admin Expert, HR Guru, Productivity Wizard..., and I could go on. A master communicator and motivator, I rely on Ginny to help my clients in their dental practice in ways I cannot.”
“Ginny was amazing. She presented and implemented a lot of great stuff, but for me the biggest impact was when she pointed out to the team how they were not scheduling me efficiently. With her coaching, I am able to work one day less and produce more in 3 days than I was previously in 4 days.”
“Our relationship has had a major impact on me. Your assessment hit the nail on the head. All the stuff I knew about and couldn’t admit, and everything I never even saw. You have helped me immensely and given me good direction. I definitely see improvement from where we were just 3 months ago – it's night and day!”
“Ginny Hegarty is consistently a big hit with the team program at LVI. Her high-energy presentations on motivation, communication and performance get the teams fired up as they learn practical strategies to make a difference in their practices. Ginny's passion for what she does is contagious and the feedback on her presentations is fantastic.”
“Save time, grief, heart, and intestinal lining by tapping into the right resources when making a staff change. My recommendation is to get the assistance of Ginny Hegarty. It was such an awesome experience for once, and the new team member is working out AWESOMELY.”
“Ginny and Bent Ericksen & Associates have been awesome in helping me with my termination and hiring issues. I am better protected and more likely to find a great replacement with their help. Definitely recommend signing up for their HR package, which includes hiring and firing forms protocols, plus consultation support whenever you need it."
“Ginny has solved a lot of gray areas in our practice. I finally feel like we can focus on dentistry. Ginny and Bent Erickson have been very helpful every time I have any questions about HR issues. I would recommend them highly."
“I have used Ginny Hegarty for my human resource needs. I have to say that I was so impressed with how knowledgeable and on top of things she is! It made my life so easy to just cut through to what is absolutely necessary and put these things in her hands. I am definitely more comfortable and confident in knowing that my t's are crossed and my I's are dotted."



