A simple guide to raising fees at your practice
Increasing prices can be a delicate subject at your dental practice, but as overhead costs rise, you’re left with very little choice but to pass the expense on to your patients. It’s just the nature of the business.
Here are a few signs that your current fee structure may need to be reviewed.
It’s been “forever” since you changed your rates
If you can’t remember the last time you revised your pricing, then it’s likely been too long.
Patients react better to small, incremental increases every year rather than a big jump after half a decade of flat pricing. If you raise prices by 1-2% per year, your patients likely won’t even notice.
Your practice offers the lowest prices in the area
Offering the cheapest service in town may seem like an reasonable business strategy but it’s unlikely to be the ideal way to grow your dental practice. If your prices are noticeably inexpensive, patients may start to wonder where you’ve been skimping.
Your fees are inconsistent
If your fees are the lowest in your area for certain treatments, this opens you up to the market of patients who shop on price alone and may only come in for one treatment. This can keep you busy but may not truly help you grow your practice. Raising your rates may actually weed out problem patients and help build a solid client base.
You can feel it in your bottom line
When profits dip, pricing absolutely needs to be one of the facets reviewed. Clarify profit targets for your practice and then monitor how you’re doing over time. If you’re consistently coming up short, evaluate your prices and compare them with other dentists in the area.