The first thing that comes to mind for most business owners when we start talking about increasing revenue is to reduce expenses.
But let’s be realistic, you can only cut so much before you start to cut on your quality which in no world will increase your revenue. Your overhead control is important but not even in the same ballpark as increasing your revenue.
Some experts would even agree with me when I say the best way to decrease overhead is to increase revenue.
If you implement these 4 easy ways to increase revenue in your dental practice, this whole conversation will be a thing of the past.
Revenue Increase #1: High profit procedures
With this one it is important to take into consideration one thing, just because a procedure is expensive does not make it profitable. You must take time and cost in relation to the fee you charge for these services to determine their profitability.
Some of the common most profitable procedures are endodontics, veneers, implants, or crowns and bridges. If you do not currently offer these services, look into further education courses. Sometimes you have to spend money to make money.
Revenue Increase #2: Case acceptance rate
Now that you have determined your most profitable procedures it would be a good time to evaluate your case acceptance rate.
Most dentists have a 20 to 30 percent case acceptance! That is a horrible statistic. If one of my employees was only giving me 20 to 30 percent effort they would be fired. So why do we accept this rate?
Increasing case acceptance should be incredibly important to you. The best way to accomplish it is to make it a team effort instead of solely the doctors responsibility. I’m sure there is a reason you chose to be a dentist instead of a salesperson.
Get the hygienist involved to explain the difference it can make in their lives. Most people make decisions off emotions not facts, so tell them how that beautiful new smile will change their lives. And when the patient goes to leave, the receptionist should be scheduling the procedure right then.
If you increase case acceptance to just 50 percent think of the addition in new income you would be looking at.
Revenue Increase #3: Building capacity
I’m a dental practice contractor. So, this is my specialty and something I am passionate about. I don’t hide that fact!
I’m sad to say that the number one problem I see with most dentists is that they have limited themselves greatly solely based on the space of their office.
When you are a young married couple first starting out, a small two bedroom house is fine. But when your family has grown to six people with the addition of four children, would you still want to live in that two bedroom house? No way!
As your dental practice grows, your dental office should grow as well. As an expert in dental office’s here are a few of my tips.
Make use of empty space. If you have a store room that you can fit another chair in, do it! You can always find storage elsewhere.
If your current space is limited and you are booked too far out, I guarantee you are losing patients. If you are unable to get patients in within a reasonable time, it may be time to consider building a new office with more space.
You might need better organization. Your dental office should run like a well oiled machine. If you are constantly hunting for supplies, maybe it’s time for an expert. We can remodel to give you better organization and get an extra chair in at the same time. Or maybe remodel to give you an addition if you are already in a prime location.
Revenue Increase #4: Number of patients
I know this is something that as a dentist you hear a lot. And I also know it is easier said than done. But stick with me for a moment… this is part of the overall grand plan.
Increasing the number of new patients at your practice is top priority for all dentists. I would recommend you do this by doing more internal and external marketing.
Do the right type of marketing though. You don’t want this to be in vain and cost you more than it makes you. For some examples, you could offer current clients a referral gift and advertise that to them! Don’t just have the policy in place, have it on a 20×20 poster in the waiting room.
Most dentists want to bring in new patients as their number one goal. I listed it as number 4 for a reason. This should be your last step in my opinion.
If you increase your profit in other ways, you will be able to better spend your money on marketing and getting those clients into your chair. And where would you put those new patients if you already don’t have enough room for existing patients?