We just ran an analysis on Aurora, Colorado. This suburb of Denver is growing (well parts of it are), and filled with upscale, affluent households with children present in the home. These are all great indications. The ratio of dentists to population in Zip Code 80015 is a favorable 1:3,000+. Granted the contiguous Zip Codes of 80013 and 80016 are not so good but they are still better than "just acceptable.
The problem that local doctors might have as they examine these locations is an "apparent glut" of dental practices because so many are found within a narrow geographic region. Cities like Aurora do not want to build "strip malls" or "professional centers' in their residentail areas. In this way, the community appears to be well-planned. But what do you do when you are considering a location with a good demographic character and reasonable competition ration but you can throw a rock and hit 10 dental offices?
The answer is "diversity of branding." If the practice is going to compete in an apparently crowded market, it must look or seem different or unique in some way. In the olden days of practice marketing, the advise would be to vary one of the Four "Ps" of Marketing:
- Product
- Price
- Place
- Promotion
So, which office will be perfect for those who commute into Denver? Which one will best serve a mother with two small children? Or teens? Or Catholics? Or "the thrifty"? Or "the extravagant." It is less a matter of "niche" marketing as it is a means of providing some clear differences from the guy next door. And if you want to serve EVERYONE, then the practice may suffer because no one knows that they are part of EVERYONE. They are just "me." This is the reason why we preach the effectiveness of "Market Segmentation."
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3 comments:
As a dentist who lives close to this area in Aurora, Colorado, I can attest to the fact that many offices jumped into this market at the same time. MANY!! I can also tell you that I personally know of 2 friends in that market that are struggling pretty hard. Lots of "numbers", but sometimes that doesn't translate into lots of patients or business.
So where is a goog location in CO to either start up a practice or buy one?
In answer to Phil's question, I am reluctant to be too spacific because it has the tendency to create a "mini-rush" on the places. Still, if you look at locations that have a moderately affuent population and a strong local economy like Englewood, CO, a practice for sale (even with LOTS of other practices) could make sense.
Start-ups are tougher because you want to look for an area that is growing (or developing) and doesn't have large number of dentists right now. It might take a litle vision. Castle Rock (parts of it), Lewsiville/Lafayette, and the string of communities north of Greeley TEND to fit this pattern.
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