According to the American Dental Association, 40% of dental offices aren’t generating a profit. The COVID-19 pandemic has caused significant financial hardship for practices across the nation, and many are struggling to recover their finances.
While you may have started a dental office to provide patients with exceptional services, you must adopt a business mindset to ensure its success. Read the following advice on how to run a profitable dental office.
Identify Your Office’s USP
Your dental office must differentiate itself from its local rivals to secure many patients. To do so, you must identify its unique selling proposition (USP), which are the factors that encourage consumers to choose your services over a nearby rival.
For example, you might provide affordable cosmetic dentistry, state-of-the-art technology or employ award-winning dentists. Don’t be afraid to promote your USP across various platforms to encourage patients to register at your office.
Take Control of Inventory Costs
Dental offices require a substantial amount of inventory to care for their patients’ every need. It is one of the most inventory-heavy industries in healthcare, which can take its toll on offices’ profit margins. Taking tighter control of inventory is one of the easiest ways to run a profitable dental office.
Aim to keep overheads below 6% of your gross revenue. If this sounds too complex for your skillset, introduce an inventory management system for accurate metrics. For example, it will provide inventory recommendations based on:
- Expiration dates
- Minimum and maximum levels
- Tracking returns
- Free goods
- Dental equipment needs
Accurately managing your inventory will prevent over- and under-supply. Also, it will stop your office from wasting inventory or disrupting operations. The right system can lower annual overheads, increase profit margin, and lower employee stress levels.
Maintain Dental Office Equipment
Dental office equipment can be expensive, which is why you must care for the technology throughout the years to support its performance and expand its lifespan. Equipment faults will not only require an expensive repair or replacement, but they can disrupt dental services, which will lower your office’s revenue and profitability.
Maintain your dental equipment by following a manufacturer’s recommended cleaning protocols, organizing regular health checks, and scheduling a servicing or repair at the first sign of trouble.
Offer Dental Financing Options
Many people avoid attending the dentist due to poor finances. As some patients might not have comprehensive dental insurance, they might fail to make an appointment for routine check-ups, services, or cosmetic treatments.
Dental financing options might be an ideal solution for your practice. It will increase your business profitability while providing patients with a more affordable way to pay for essential and desired dental procedures. The option could even help your office stand out from the crowd and build a more extensive patient list.
As your office might juggle expensive overheads, equipment issues, and much competition, it is essential to improve inventory management, care for technologies, and find ways to stand out from your rivals. If you follow these tips, you could build a much bigger profit margin in 2022.