Dentists spend too much time thinking about one type of margin.
The margins that are associated with teeth.
And not enough time thinking about an equally important subject.
The profit margin on the work they do.
Real life example:
- special offer on Invisalign – £2900 (cheapest price in town)
- plus free home whitening
- plus a further £300 discount on the Invisalign if you become a member of the practice (£18.00 per month)
Result.
Loads of patients and work – some profit but not enough profit.
Busy dentists running around with their hair on fire, patients by the dozen – profit and loss figures that don’t look healthy enough.
What’s missing?
A careful evaluation of the lab and materials costs, regular checks on internal costs – and a serious re-think of the marketing strategy.
Decisions about changing the offer – the effect of which will be to reduce the number of patients and increase the overall profit.
Its about margin – think retail.
Do you know the margin on everything you do?
If not, you need a coach.
