Dental Practice Management Economics, A Rule Of The Wealthy

I attended one of Dan Kennedy’s seminars recently. It was $1,995 per person for a 1-day event. A big ticket, without a doubt.

But, as usual, I ignored the price and plundered onward, excited about what I would learn.

Interestingly enough, it was a seminar titled, “Wealth Attraction for Entrepreneurs.”

This is a subject Dan is very aware of, since he is truly a “self-made” millionaire and an incredibly astute businessman. So, I tuned in. Eight straight hours. Sitting. Jotting notes. Listening intently.

One of the most valuable bits of advice I got that day was this:

Get Paid Now, Not Later

Wealthy people get paid before they do the work. Poor people get paid after. “As a result,” says Dan, “poor people are trying to pay yesterday’s bills with tomorrow’s paycheck and incur debt rather than accumulate savings.”

“Wealthy people are paying tomorrow’s bills with yesterday’s paycheck and can accumulate savings rather than debt. Poor people must buy in the most disadvantageous manner. Wealthy people can buy in the most advantageous manner.”

How is your business set up? Do you get paid NOW or later? Are you extracting maximum income from your practice?

Your Fees Revisited

There are two ways to increase your net profit: prescribe more treatment and get it done; and raise your fees and cut your overhead (somewhere, anywhere, look around… do you NEED all that stuff?).

I don’t want to beat a dead horse, but let’s look at the math anyway.

These are for examples only…

$50,000 production with 70% overhead = $15,000 net.
Let’s say we reduce overhead by 2% = 68% OH on $50K = $16,000net.

You just got a $12,000 per year raise!!!

And, how about an increase of fees by 5%…

$50K becomes $52,500 with 68% OH = $16,800… now you are earning $21,600 MORE per year by shifting two numbers.

ACTION-TO-TAKE TIP: Look around. Where are your fees? When was the last time you raised them? (DON’T WAIT TOO LONG!) How much did you raise them? Can you cut overhead by a few percentage points?

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EMC Dental Marketing is a full-service Dental Practice Marketing, Dental Advertising, and Practice Management agency that focusses on solving a dentists top 2 problems - attracting new patients and retaining the patients they already have.