Effective Strategies for Keeping Your Dental Practice on Budget: Navigating Spending Decisions with Your Owner/Dentist
(Full Disclosure: My boss suggested this article’s topic based on our numerous conversations about NOT spending money.)
I like new technology. So does my boss. Through the years, many new dental technologies have been presented to us. We’ve sat through demos for intraoral scanners, robotic implant arms, lasers, cone beams, X-ray machines, 3-D printers, and recently, AI technology, to name a few. All are valuable pieces of technology that can change your dental practice.
However, buying the right technology at the wrong time can negatively impact your business. Purchasing a new robotic implant arm before your practice is ready to “sell” implants might result in a significant expense before the technology makes money for your practice. Purchasing 3-D printers before you have a good digital workflow would have similar results. However, both of these technologies are awesome. Either purchase could make your practice lots of money. So how do you know when is the right time to buy the right technology? The answer is simple: let your numbers do the talking.
Review your monthly profit and loss statements to avoid overspending. Most dental practice owners have a profit margin they want to reach. Let’s say your practice owner wants to see a 20% profit. They also want to purchase new technology. If the new technology will result in less than their desired profit, you need to discuss the profit and loss and make a decision.
For purchases like cone beams and robot arms, how long will it take for the technology to result in greater case acceptance and improved outcomes? The new technology may initially result in less profit. Is the dentist prepared to accept less profit during that period?
Know the “real” cost and keep other factors in mind. A few years ago, I wanted my boss to purchase intraoral scanners. This was a significant purchase for us at that time. After discussing the “digital impression” discount and reduced shipping cost from our dental lab, we decided to proceed with the purchase. The reduction in lab fees and shipping costs was more than the monthly payment for the intraoral scanner. Additional savings were achieved through reduced chair time and decreased analog impression materials. The savings were more than the cost, resulting in greater profit.
We are fortunate to work in an industry that is constantly improving and innovating. New dental technology could result in big changes for you and your employer. Help your practice owner make informed decisions.
Eliminate overspending and buyer’s remorse with sound business decisions based on the monthly profit & loss statement and keep other factors in mind. How long will it take before this purchase turns a profit? Are the savings (chair time, materials, and discounts) greater than the monthly expense? Will this technology be something covered by insurance? Is your owner prepared to accept less profit in the short term? Big purchases require real conversations. Let the numbers do the talking.
About the Author
Kari Hicks, MAADOM, is managing director of Access Dental Services, LP in Missouri, a growing company with five current locations. She has worked in dentistry for more than 15 years, beginning with on-the-job training as a chairside dental assistant. She has worked as a practice manager for more than a decade.
