David Segal, The Cosmetic Institute founder
After noticing that many Australians were flying overseas to Thailand for cheaper cosmetic surgery, 33 year old businessman David Segal founded The Cosmetic Institute (TCI) two years ago and has since led it to become one Australia’s largest providers of cosmetic surgery.
David Segal barely passed his HSC, dropped out of university after a few months and went on to try his hand at every possible job under the sun, from washing cars to working in libraries and gyms. He even did door to door sales selling home alarm systems!
“My biggest challenge in life has been myself - I’ve never been good at taking direction from others and found it difficult to land myself in job I could feel passionate about,” the 33 year old businessman shared with Timely Visit, about his motivation to venture out on his own.
“I think I was always destined to be my own boss, I just needed to find my niche and to surround myself with likeminded, successful people.”
“I also had a close shave with death when I wrote off a car in my mid 20s. This was definitely the wakeup call that I needed to get my life together and stop fooling around,” he added.
Spotting a gap in the market
David later worked as General Manager for a prominent Sydney cosmetic surgeon and during nearly three years in the practice, he watched the price of popular cosmetic procedures rise steadily. As a result, he saw that an increasing number of Australians had begun to travel overseas to places like Thailand for cut-price cosmetic surgery so that they could save money.
Whilst many patients experienced great outcomes and no hiccups, a significant number returned to Australia with complications and in many cases ended up paying more for corrective surgery or ended up languishing on public hospital waiting lists.
David saw a discernible gap in the market for a cosmetic surgery practice that could offer affordable cosmetic surgery without sacrificing patient care or surgical outcomes, right there in Australia.
The Cosmetic Institute in Sydney, Australia
Filling that gap in the market
Personally investing everything he had, as well as securing private funding, David started The Cosmetic Institute in Parramatta, Sydney in August 2012 in partnership with Surgical Director and plastic surgeon, Dr Eddy Dona, who he had worked with earlier in 2006.
David brought years of management experience with cosmetic surgery practices to the table while Dr Dona on the other hand brought years of extensive surgical experience.
Together, their business mantra was, “Half the price; double the service.”
Compared to the industry standard that sees most surgeons charging up between $10,000 and a $14,000 for a breast augmentation, The Cosmetic Institute provides breast implant surgery for $5,990 in its custom-built, internationally accredited surgical facilities, performed by a team of highly trained and experienced cosmetic surgeons.
The radical drop in price has seen more than 5,000 patients come through TCI’s doors in just over 24 months of existence. They had a turnover of over $4 million in September 2014 alone.
“We came into the market offering the average Australian an affordable, quality alternative for cosmetic surgery in Australia,” David told Timely Visit.
“However, in more recent times we have become the provider of choice for all Australian women seeking breast implants surgery, not just those who were initially attracted to us for our price point.”
Besides breast augmentation, they also offer other common cosmetic procedures such as liposuction, male breast reduction, labiaplasty and eyelid rejuvenation.
The Cosmetic Institute
What challenges has TCI faced?
David says their biggest challenge to date has been changing people’s perception about cosmetic surgery, to “lift the veil on what has traditionally been a misunderstood industry and to prove that paying less doesn’t mean receiving less.”
He further pointed out that starting a brand new business that was doing cosmetic surgery differently from how it was previously performed in Australia was no small task.
“In the early days, many of the initial patients coming through our doors were the “first adopters” who were willing to give us a go, or were on the verge of flying out to have their procedure done overseas in Thailand,” he shared with Timely Visit.
“We had one opportunity to get it right, to prove to this initial group of patients that we could deliver on our promise to the market.” David says this was especially difficult given their limited resources at the times.
Now, with two clinics in Parramatta and Bondi Junction under his belt, and more clinics planned for other locations around Australia, a revenue of just over $26 million since starting just two years ago and a projected turnover for FY 14/15 of $35 million, David says their biggest challenge as they continue to grow will be maintaining the consistency of their offering whilst still growing fast enough to keep up with the market demands.
How has TCI succeeded so fast, having started just two years ago?
“To be successful in today’s retail market, you need to be offering the total package. That is, provide exceptional service and value via exceptional staff and perform it consistently,”
-- David explains.
“TCI’s foundations have been built upon a very simple value proposition – half the price, double the service. This culture has been instilled in each and every one of the TCI team and there is an enormous sense of pride and equality amongst everyone.”
“Every member of the team is equally as important to the continued success of TCI – from the surgeons and the anesthetists, right through to our administration and nursing staff. Everyone plays integral role in our patient’s journey.”
The Cosmetic Institute
For other entrepreneurs out there who would like to replicate his kind of rapid success in their own businesses, David has the following simple tips to share.
“First of all, follow your passion and make a career out of it. If you love what you do, being good at it is easy.”
“Secondly, surround yourself with liked minded people.”
“Thirdly, stay disciplined and be prepared to put in the hard work.”
“Lastly, take a risk – fortune favors the brave.”