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At jkc consultancy we have worked with several practices, on different aspects of the business. This includes understanding operating costs and chair occupancy, as well as other, less financial, aspects of the business such as the customer journey. Our approach is a holistic one to give you the best opportunities for your dental practice.
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Operating
Costs Let’s begin with the ‘known’ numbers within the practice. Your overall annual operating costs, lab & materials and associate percentages (which might vary depending on experience or length of time they have been with the practice). The daily operating cost is calculated by taking the annual operating costs and dividing it by the number of surgery days either ‘open for business’ or available during the year. The list of ‘unknown’ numbers can vary; they might include the required income to breakeven, the income required to make 5% or 10% profit, and so on. This might be a perceived number in the mind but in a busy practice does it translate to the profit and loss account? Whilst there might be an ongoing battle around keeping lab and material costs down the most valuable and interesting numbers are those relating to associate percentages. The difference between 50% or 45% or 40% can be 00s per week/month meaning that every day the target is NOT hit, the surgery owner is actually making a loss on that associate. If you want to have a conversation about this please contact me. |
Chair
Occupancy The operating costs can be difficult to get your head around! However to add to this all the calculations are based on everything working perfectly and all your patients turning up. The chances of having 100% occupancy are pretty slim so after getting to grips with your operating costs, the next stage is to 're-adjust' those figures to allow for your chair occupancy. Your chair occupancy will vary but you should see a pattern of activity over the years with a couple of spikes and dips, and an average around 85% or so. There are some things you can do about this but we know that there will always be cancellations - and unfortunately you take the hit, as your operating costs remain exactly the same. What becomes harder is when you have an Associate who works a 0.9 contract and a surgery unoccupied 0.5 days each and every week. The calculations can be done in various way but will be a blend of operating costs, associate rates, chair occupancy and running costs so that you, as practice owner, understand the caveats for maximum profitability. If you want to have a conversation about this please contact me. |
Customer
Journey We are all very aware of the choices customers make, and how easy it is for them to research and move service provider. It also costs money to market a business, therefore retaining existing customers is key. Every aspect of the customer experience needs to be considered and every member of the team needs to take ownership of the part that they play! From a clinical point of view, it is difficult for a new patient to tell the difference between you and the next dentist, particularly so in the early stages when they have received no treatment. They will, however, be able to tell the different from an 'experience' viewpoint and this is where you can build loyalty from the very first touch-point. Consider qualifiers and winners. Qualifiers are about meeting basic expectations, for example, a smiling helpful receptionist is a given. Winners, however, are about conveying a message to your patients which focuses on the unique experience you provide and why you are different. It's the latter that will retain clients and win business. If you want to have a conversation about this please contact me. |
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Please feel free to contact jkc consultancy if you want to discuss any of these issues or have a specific business issue that you would like help with.
Khlayre Cairney, Director & Principal Consultant, jkc consultancy T: 07568 143929 E: khlayre.cairney@jkcconsultancy.co.uk |