In any business, the profit to be realised is quite simply the revenue generated through marketing and sales less the costs incurred fulfilling, processing and administering those sales.
Many of the costs of running your dental business are fixed, others are variable. For example, it is likely that you will have insurance on your premises. That insurance premium has to be paid whether you have patients or not. Similarly, the rates on your building, the salaried employees you pay or the interest on your mortgage have to be paid month after month, regardless of the level of sales. These are all fixed overheads.
On the other hand, if you are a dentist, your lab fee increases with the number of patients you see. Dental materials are the same. These are called variable overheads.
Understanding the profit margins in your business is crucial, and in many cases a 10% increase in sales can generate a 25% increase in profits. Regrettably, a 10% reduction in sales might just wipe out the profit.
We can use our expertise to help you improve your profitability, looking at each component of your business, enabling you with the knowledge and confidence to step forward and implement changes that will make a significant financial difference in your practice.
Where should you be focusing your marketing activity? What areas of the practice and what services if marketed effectively to increase sales, will make the biggest difference to your bottom line? Simon Knox Limited can help you answer these questions, ultimately identifying the areas with the greatest potential for profitability.
Simon Knox Limited can help you implement simple changes with big results.
When a customer calls to make an appointment, instead of asking them, “When would like to come in,” a more effective approach would be to offer them the next two available appointments and simply ask, “Do either of these two suit you?” By implementing this and other proven strategies that will be uniquely tailored to your specific business, there is potential for your business to realize an immediate increase in revenue.
Let us evaluate your current business and help you identify the simpliest, most cost effective ways to increase profits within your dental practice.