Cliff's Notes

The Business of Dentistry

If You Want People to Help You Make Money, You Have to Let Them Make Money!

negotiate Like many Americans I find myself ordering things on-line and looking for good deals. Amazon continues to amaze me with the quality of there distribution and how they handle returns and complaints. However, they are not always the lowest price. Amazon chose a business model of quality and service and is constantly attempting to improve on their “customer experience”. On the other side of the equation are the big box stores such as Costco, BJ”s, Sam’s Club, etc. that chose quality and price. The low “PRICE” is what determines the level of service.

Ask yourself what your dental practice focuses on. Quality is not the question, its all about the service and the price. The lower your price the less service you can afford to offer or the harder and longer you work. Also, a low price decreases the value of your service. However, on the other hand , if you price your services according to your quality standard of care, your patient base will recognize your value. Most people look for value in the services they buy.

Your clinical skill is your quality and the “patient experience” is your service. I have several clients that are afraid of raising their fees for the fear of loosing patients. Well that may be true of a small percentage but are they the type of patients you want? They are looking at price. By increasing your services and enhancing the patient’s experience, you can increase your fees at a slow rate. Quality patients will recognize your value.

Now for the “making money”…. Quality & Service, when working together, overcome price. However, to make it work you need to share in the cash flow. What that means is providing a reason for team members, vendors, consultants, etc. to provide you with the highest quality of service so that you can maintain the quality of your management and clinical production.

The Team … One of the hardest situations for a manager is how to evaluate a long time employee for a raise. Employees can price themselves out of the market so how do you maintain quality and service when that time arrives? Simple, stop giving raises! Start establishing goals and reward with a % of the increase as a bonus for production. The team is now incentivized to help you make money. That’s how you get people to help you make money.

The Vendors … A well organized business of any size can be a little powerhouse, focus the power. Chose vendors by what they can offer to help you be successful. The quality and service they can provide allows you the opportunity to streamline your organization to maximize production. You need to go into these relationships with your eyes wide open. Its not about the price, that can always be negotiated with an agreement of an on-going relationship, its about the quality of the services being provided. Choosing a vendor is an investment, what’s the ROI?

The Value … I can’t tell you how many clients tell me that they changed accountants because the accountant was too expensive. That may be one of the most foolish statements a business owner can make. What type of services were they getting? Those clients chose price over quality and service. If price takes over the conversation, quality and service will be reduced as will overall revenues. You have no expenses, only investments in quality. What’s the ROI?

Price– Quality– Service … Pick 2 because you can’t have all 3… Quality organizations associate with other quality organizations. I prefer quality. If I can help a client be more successful and do more dentistry, then they will welcome more of my services, everyone wins with quality & service, especially the patient.

 

Advertisements

August 11, 2016 - Posted by | Uncategorized

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: