Fact: If yours is an average dental practice, you need $5,000,000 in potential work to start with to produce $1,000,000 dollars in a year. Take your time and follow the math. Once again, “average” should never be a destination. Everybody has been there; the engaged dentist tries to move through this waypoint as fast as possible. They are the ones that insist on becoming the best they can be.
Here we go. The premise is that YOU NEED $5,000,000 TO START WITH TO PRODUCE $1,000,000.
If we start with the $5,000,000:
- Only 35% of your leads (telephone calls) actually make an appointment. If we compare that to 100%, we are down from our original $5,000,000 potential to $1,700,000.
- Statistics confirm that only 85% actually show up, so now we are down to $1,500,000.
- Only 60% of those that show up will accept treatment, boom, $900,000.
- But 15% refer (it should be 50%, but this is an average practice) which brings us back up to $1,000,000.
So as not to be a “Debbie Downer”, lets end on a positive note. There is a strategy that ensures positive growth every year. These will be doable, actionable goals by next Monday. Get ready to act.
5% IMPROVEMENT = 40% INCREASE IN PROFIT (anyone can grasp a 5% improvement). We are going to just add 5% to each of the benchmarks from above.
- Phone conversion goes to 40% ($5,000,000 X .4 = $2,000,000)
- We move up 5% and 90% show up: $2,000,000 X .9 = $1,800,000
- You actually are engaged and listen to your patients and we increase Case Acceptance from 60% to 65%: $1,800,000 X .65 = $1,200,000
- You begin to grasp the fundamentals of internal marketing and boost your patient referral rate by 5% which takes it to 20%: $1,200,000 X 1.20 = $1,400,000.
Not a bad strategy: The 5% strategy. That’s an increase of $400,000 in the first year. Now imagine what an extra $400K would do for your overhead, your debt, and your confidence. It’s time to commit to incremental improvement in your practice.
TODAY!
Give me a call, text, or email, and discover the how, when, and where of unlimited growth, new patients, and a profound change in perspective.
Michael Abernathy DDS
[email protected]
972.523.4660 cell
(Yes, this is my personal telephone number. Give me a call and see what a simple conversation with a colleague can do for your practice.)