Sunday, July 13, 2014

The Profitability of Dentistry (Part Two)


As mentioned in previous articles, a dental practice's staff will reflect the attitude of the doctor -- good or bad.  Profitability is built upon services, decor, atmosphere, prices . . . and a patient's feeling of being wanted and respected.  If a doctor parks an expensive automobile in his parking lot with a vanity plate reading "BRACE$$", patients may feel they are not valued for more than a car payment.  A doctor who looks at low-income or troubled patients with contempt, even in private, will find the staff mirroring the attitude.

Wise counsel once stated, "A recovering Meth addict knew how to get money for their habit.  They WILL know how to find money for teeth restoration."

Who Are You and What Do You Want?!


 "The face of your practice should not be . . . grumpy."

Selecting the right staff is critical to your finances and, well . . ., finances. You need to find a balance between skill, experience, personality, and cost. A recently-graduated hygienist may be a better choice for your new practice as their salary requirements may be less than one with years of experience. New techniques, willingness to take direction and a bright personality can be the right fit for you.

Your choice of front office staff is just as critical as hygienists and dental assistants. This person is the first contact your practice has with a prospective patient – likely by phone. You should conduct a first interview via telephone so you can hear what your patients will hear. Can you hear them “smile” during your call? Listen to their grammar, tone and inflections. Ask yourself, 

“Is this who I want as my practice’s first impression?” 

If you hesitate, move on. Your staff is a reflection upon your practice and your business – make sure it’s positive.

"Glass isn't just a barrier for your patients,
but also a barrier to your success."

A written job description for the receptionist/front office person will help you identify your practice’s needs before their first day of work. Do you expect them to handle basic accounts receivable, insurance, billing and collections in addition to answering the telephone and patient check-ins? This can relieve some pressure from your work load as a business owner and will allow you spend more time with your patients. But with greater responsibility comes greater pay. Find the person with the right balance of personality, job skills and salary expectation.

"Your mission, if you choose to accept it, is to
MAKE ME MONEY!"

Hello, My Name is Doctor . . .


"I'm the doctor.  It says so on my tag."

Let’s review. You have your degree, you've selected the perfect office location, decorated it comfortably, installed the right (but not too expensive) equipment, hired the perfect staff, turned on your telephones and your name is lettered in gold leaf on the door. Now you just need to hang a grand opening sign, open the door and the patients will pour in like a gentle summer rain.

WRONG.

Other than your family, no one has been anxiously awaiting your grand opening. Why? Because you didn’t tell them. You forgot one of the key steps to opening any new business – marketing. Your prospective patients need to know who you are, where you are, and why they should select you as their new dentist. The adage, “You have to spend money to make money”, is no truer than in this moment for your new business. It’s time to invest in a concerted marketing plan to build your practice.

"Thanks Dr. Daddy."

"Dammit Jim!  I'm a Doctor, Not an Adman!"


You have one goal to achieve in your business – increase your revenue stream. Revenue comes from a steady flow of new patients entering your practice. Below the simplicity of this statement hides the complexity of making it happen. Marketing your practice will be one of the most difficult procedures you perform as a dentist.

Let’s break marketing down into three categories: public relations, branding, and advertising.

Public Relations


Public relations is an outreach to the community via the press and events which shines a positive light upon your business or brand.  Example:

"Doctor Doug Smith, DDS announces the opening of his new dental practice at the Three Points Shopping Center.  Dr. Smith practices complete family care and specializes in dental implants . . ."

 This item would run in the business section of your local newspaper on a slow news cycle.  It will also encourage the advertising manager of the paper to call and discuss a great deal on a four-week advertising run in the paper.

Branding


Branding is any advertising, event, signage or social media that brings attention to your practice without specifically trying to sell an offer or service.

"Hi, I'm Dr. Doug Smith.  Remember me the next time you need to see a dentist."

 Th is can be a print, radio or television advertisement. The tone does not need to be compulsory.

Advertising


Advertising is a call to action for a consumer to purchase a specific product or service.

“Hey folks! Come on down to Doug Smith Dental where we are DRILLING away at tooth decay! Call us now and get a complete cleaning and exam for only $99.95! For the first 100 callers you’ll get not one, but two complete cleanings and exams! Two complete cleanings and exams for ONLY $99.95! With an offer like this I must be CRAZY!”
This is an example of a direct response advertisement. You make an offer and expect an immediate response from the viewer or listener. Variations can be designed for print advertising.

"Operators are standing by."


Effective Marketing Costs Money



 "Branding is the center of your marketing . . .
and YOU are the BRAND."


To design an effective marketing plan to build your practice you should consult with an advertising agency. They can design advertising, prepare scripts, hire actors, and coordinate all media buys. Be prepared for in initial investment of at least $25,000 in advertising for the first 4 – 6 weeks. Have weekly meetings with your agency representative and review their data and compare it to your increased call volume and actual new patients generated by the branding and advertising campaign. This allows you to adjust the ad copy and offers based upon which are providing the best results. Train your staff to log where each call originated and if they became a patient. This will help you invest future spending on marketing which has a track record of success for your practice.

"Meanwhile, make sure your advertising places
your message in the best light."

Anything Else?


When I began writing this article my inner voice kept repeating,

“You wouldn't let your mechanic work on your kids’ teeth, would ya’?”

It’s snarky, but the meaning behind the statement rings true. I've counseled numerous dentists about trying to do everything themselves. I had a conversation with a dentist who had cobbled together his office computer network from used, ancient desktops but then complained about all the time he spent after-hours trying to keep the network running. His practice management software ran slow, computers crashed, and he was incredibly frustrated. I sat down with him at a dental conference and asked, “Why are you trusting your entire business to 10-year-old computers running Windows XP?”

His reply, “I’m cheap.”

He’s a doctor with a $150,000 education and $250,000 in office build-out yet he said he was too cheap to invest $7,500 in new computer equipment to properly operate his business

You have chosen to embark on an incredible adventure as a small business owner. Look around your area and identify businesses that are thriving and those that are failing. What are they doing right and what are they doing wrong. Are they offering a product or service people want? Are their prices reasonable? Do they have a good location. Take note, the businesses which are succeeding are not trying to do it alone. They hire other businesses with expertise in specific fields for support. This doesn't make them weak – it makes them smart.

If you have questions regarding your practice's marketing strategy, feel free to contact me at darrensomsen@gmail.com.







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