You will never substantially increase revenue by reducing expenses. Overhead control is important but not nearly as important as increasing revenue. In fact, the best way to decrease overhead is to increase revenue. If you implement the following four guidelines, the increase in revenue will far exceed the increase in overhead. This, in turn, equates to profit.
Most of the time it is important that these guidelines be addressed in the order listed:
1. Increase your case acceptance rate. Most dentists have a case acceptance rate of 20% to 30%. This means that seven to eight out of 10 new patients each month are walking out the door without doing the dental treatment that was needed and recommended.
If you increased case acceptance rate to 60% to 70%, then you would double revenue on the same number of new patients.
How do you accomplish this? By making case presentation a “team event” as opposed to solely the doctor’s responsibility. This method works better to inspire the patient to want the needed treatment. People will always find a way to pay for what they want, but not necessarily what they need.