/

  • linkedin
  • Increase Font
  • Sharebar

    How to reduce costs, increase marketing and boost profits for your dental practice

    These cost-saving tips will help you have enough to reinvest your savings in quality, targeted marketing that will further grow your practice and generate strong returns on your investment.

    Many established and new dental clinics alike suffer from crippling overhead costs that reduce profits, decrease competitiveness and generate unneeded anxiety.

    According to the ADA and Bureau of Labor Statistics, the median overhead for general dental practices was 75 percent. Most practices have had months when overhead reached an uncomfortable level. But when a dental practice consistently has overhead expenses in excess of 65 percent, this can be dangerous. In fact, most consultants encourage practices to maintain overhead at 59 percent or less for optimal business health.

    Related reading: 4 ways to innovate your dental practice without breaking the bank

    Reduce operating costs:

    Operating costs are the best place to trim the fat from your monthly overhead. Not all cuts are good cuts. The following are recommended areas to realize cost-savings for your practice. 

    Lab costs: Have you been with the same lab for years? Perhaps it’s time to review your relationship and negotiate more advantageous pricing on lab services. Even reducing lab shipping costs can have a measurable impact on your monthly bottom line.

    Supplies: Take a good look at your procedures for purchasing supplies. Should you take advantage of discounted bulk orders? Do you have too much in inventory, especially for occasional-use items? A review of your purchasing model may reveal some cost-savings opportunities. 

    Lease vs. own: Interest rates are still holding at historic lows. If you rent, now is the time to renegotiate your lease terms or look around for more affordable or more advantageous space. If you own your space, call your banker and consider refinancing at today’s lower rates. A rate reduction of 2 to 3 percent could save you hundreds or even thousands of dollars every month.

    More on reducing cost: Exploring average patient cost per practice

    Continue reading on Page 2 ...

    Patrick Goodness
    Patrick Goodness is the CEO of The Goodness Company a global healthcare and dental marketing firm. He is one of the most recognized ...

    0 Comments

    Add Comment
    • No comments available