Most Popular in:
Today's Flight to Quality
By: David Suzuki
Posted: October 26, 2009, from the November 2009 issue of Skin Inc. magazine.
Regardless of whether you are a consumer or business owner, gone are the days of casual purchasing. Though this is not to say that society as a whole is not living and therefore not purchasing—it’s simply pointing out that people are purchasing selectively, be it when they are shopping for groceries, automobiles or skin care technology. And although this new way of thinking was a necessary realization largely catalyzed by the recent economic crisis, the new selective purchasing mind-set has quickly, and for good reason, become an irreversible way of life relevant to all people and all companies regardless of geographic location, type of business or company size.
What has not changed, however, is society’s insatiable desire for modern technological progress, whether it’s new forms of alternative energy, medical science, handheld communication devices or even skin care offerings. Consumers and society as a whole will continually pursue newer, more effective and more technologically advanced ways to improve their quality of life.
In an effort to meet the demand of today’s selective purchasing lifestyle, experts suggest skin care professionals are looking for new technology that is:
- scientifically proven with sound efficacy that supports rapid and effective results;
- marketable now and maintains good longevity of marketability;
- justifiable and profitable;
- able to integrate into an existing menu of services and shows promise for future layering with other technology; and
Although this criteria may not be so illogical, these simple points of seemingly good common sense have an entirely new meaning in this new world of selective purchasing. As you are listening to and interpreting all information in an entirely different way, you realize society is now in “flight to quality,” which is an investment term describing what occurs when investors sell what is perceived to be higher risk investments and purchase safer options.
Justifiable profitability sounds pretty straightforward when purchasing new technology and equipment, but the real question is, where do you start? Typically, a good starting point is to estimate the lifespan of the device so you can calculate a basic amortization of the investment asset, which is also necessary to declare when processing annual taxes for your business. And if your prospective supplier cannot answer this question definitively and immediately, its an indication this would be the time to find a new supplier.