Jay Abraham Case Study #342
From: David Adlard
To: Jay Abraham
Sent: Friday, August 16, 2002 9:27 AM
Jay,
I have been a student of yours for over 15 years. While I have never attended one of your "live" events I have purchased several of your courses over the years and have successfully applied the methodologies in several businesses. Here are just a few of the examples.
1. I took a small specialty retail shop (balloons and gifts) that we had purchased just after my wife and I were married for her to run and grew it from $10,000 per month in sales to an organization that included three retail stores, a wholesale distribution company, an event planning firm, and an export company (that included the ownership of some Disney licensing rights) doing total sales in excess of $4 million dollars per year.
It took me just under 4 1/2 years to do this. I used dozens of your ideas and strategies to accomplish this but most important was the development of a USP for each and every division of the company. We also learned early on how valuable our customer and client base was and how to harvest additional dollars from the people we were all ready doing business with. We eventually sold off each company individually and moved on to our next project.
2. I consulted on another project (mobile automotive service company) where I wrote one sales letter and faxed it to a targeted list. The results were so overwhelming the company had to immediately quadruple their capacity and eventually ended up selling the company to another firm with the capital for the expansion. By the way, I warned them that in a service business such as this that they may not be ready for my help but they wanted it anyway.
I could have turned this into a long term residual income stream but turned it down for better opportunities. The Abraham principle applied here was one I refer to as "Abraham 101". Find out what the value of a customer is, find other potential customers like the ones you have, and then make them an irresistible offer that brings you a new customer at the lowest possible customer acquisition cost possible.
3. My most recent success is with a dental practice. My father has been a dentist for 37 years. About four years ago I started looking at my dad's financial situation to make sure that he was going to be ok for retirement. He has always been a great dentist but not the best businessman. I won't go into all of the details but over the course of a few months I discovered that this industry was getting ready to boom and that if the proper plan was put in place that my father could make more money in the next five years than he did in the previous 20 years combined.
We structured a deal that made me a full partner and I went to work "Super Abrahaming" the dental practice. In 1998 my father's practice had gross revenues of around $300,000 per year. This year we will do just under $3,000,000. We are doing this out of the same location (although remodeled and more strategically laid out) and my father is working fewer hours than he has ever worked in his entire career.
In fact he will probably be down to 4 days a month by September and will still make three times what he did before. When he fully retires he will still own an asset than continues to increase in value and pays him residually for as long as he owns it and probably even for awhile after he decides he no longer wishes to be involved. Before applying your strategies he was seeing about 20-30 new patients per month and the average patient was generating roughly $280 in revenue per year. The total patient base was around 1500.
Our practice now generates more new patients than we can see. We average 120 that we do see and refer the rest to other dentists. We referred 30 just last month that generated over $5000 in referral fees and the coolest part is that we NEVER SAW the patient. By the way, our average new patient now generates in excess of $1000 per year for general dentistry and over $3500 on sedation cases. Our patient base exceeds 8000 patients.
By spring we should have two company owned locations and four other affiliated practices in our metro area. We're just working out the legal structure now. To generate these results I basically took your material and applied it to the dental industry. As a side note I understand you have some special reports or case studies on dental offices. I have never read them. I just applied the generic Abraham principles and got these results.
I could go on but I won't. The next move for me is to get out of the day to day operation of the practice and to go out and find other joint venture opportunities where I can apply the "Abraham Methodologies". I have done this in the past and want to get back into it on a larger level. Once a person discovers the power of these principles and learns how to apply them the toughest thing to do is decide what you want to work on.
Have a great day!
David R. Adlard
Managing Partner
Adlard Dental
Author of Evolution of the American Dream
Founding Advisor, US Health Advisors President
The Adlard Group, LLC
Office: 816-356-1300