Profitable Practice Rule #2: Reduce Dental Supplies Expense

Nate Williams Practice Management 2 Comments

The average dental practice has a 60% overhead, or 40% Operating Profit Margin (the percentage of money you keep after paying all operating costs of the business). This means that the average doctor keeps $.40 of every dollar he/she collects. Our clients are not average, so we’re not satisfied until we see a 50% operating profit margin or better. In our last blog post we emphasized the importance of focusing on production and all but ignoring everything else in order to increase profitability. Because most of the costs in a dental practice are fixed, this approach is critical. But there is one cost we do want you to be aware of and to focus on continually. Clinical Supplies. We tell our clients to “spend 95% of your time and energy on production (making money). Of the other 5% that you can direct towards saving money, spend 95% of that energy and …

Nate WilliamsProfitable Practice Rule #2: Reduce Dental Supplies Expense