Incremental Growth in Your Dental Practice

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Incremental [ in-kruh-men-tl ] Adjective - Increasing or adding on, especially in a regular series

Revenue [ rev-uh n-yoo ] Noun - An amount of money regularly coming in

Ever so often when we're talking with doctors about growing their practice they'll bring up the fact that after all of their overhead they don't have any cash left. Understandably so, there are a handful of ways to make you as the doctor more comfortable financially in your office and incremental revenue is one way. This is good for the entire team to know because half of the time not everyone understands how this can work and when everyone understands, everyone benefits.

Lets break down the math for you, to show you just how the finances in your office works.


In this scenario your doctor works 16 days/mth with 75% overhead, which means it takes this doctor 12 days to breakeven. Which ultimately results in 4 days of profit for the doctor and the office! So as a team member, imagine losing a day of that? If a day is lost out of those 4 days, the doctor takes a 25% pay cut. Take a second to imagine you personally taking a 25% pay cut, it hurts doesn't it?!

Now, lets take a look at a practice that does $100,000/mth and if we grow you 20K - that's 120k with the same breakeven point. What we need to understand here is the overhead costs, there is fixed over head which is rent, water, salaries, electric bills and then there is variable over head which is supplies, lab, merchant fees, etc.

It's great to see just how much your dental practice can grow with even just a small 20% increase revenue which almost yields a 100% increase in profit.

It all comes down to where is your breakeven number, what's your fixed overhead percentage? Take a look at these numbers and if you need help understanding the math of it all, reach out to us here at AMP or your personal coach so that you and you're dental team can better understand.

Maybe you're thinking, "well where does this extra 20% even come from?" "how do we get the incremental revenue?" - Just like the end-cap in a sporting good store, it's in the add ons! We can have add on services in the office, it's as simple as sending a perio patient home with some take home product to help improve their health. The profit you make isn't a ton, but it is something. Maybe, you have a patient in hygiene and they pick up a whitening tray! Or on the other hand you have a patient who needs 3 crowns, but chooses to only do one because of 'insurance' but imagine speaking to them differently and they accept all 3 crowns!

If they accept, you generate 3 times the revenue. The profit you can make doing quadrant dentistry is out of this world!! Which means you're saving the cost of turning over a room and sterilizing it, the CRA says it costs $65 to do this. If we can talk with the patients differently to where they feel more confident in accepting, your practice is saving the time and costs it will take to turn a room over. This is Incremental revenue. Another avenue to incremental growth is the in office dental plans! This works slightly like a service contract in your dental office.

So sit down, brainstorm with your dental team and think about what additional services you can offer your patients that might be helpful. Services that your patients would appreciate and enjoy. Botox, whitening, fillers, take home product, etc. When you start to put this into motion take a look at the average production per visit. You'll start to see the incremental growth we're talking about.

What the dental team needs to understand is that this isn't just so the doctor can make more money. This is where the raises come from, retirement plans come from, insurance plans for patients and employees come from, this is where bonus come from. If there isn't excess profit in the business it doesn't give the doctor or any business owner the ability to give it back to their teams.

Anything you can do improve that smile, and give that patient more confidence is a wonderful thing and it will prove to drive incremental revenue.

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