Are your exam fees too low?

 

Have you set your exam fees too low that you can’t cover your costs?

 

Over the last couple of months, I have had lots of conversations with associates and principals who are concerned that they have not been covering their costs.

Covid has made the situation very difficult, and in most cases it has served to highlight pre-existing problems.

 

One of the most common insights clients have had, during our discussions, is that their exam fees are too low.

 Let’s describe a very common scenario.

 Practice  A is a long established, stable practice with a significant proportion of well-maintained patients, who require little treatment beyond examinations and hygiene.  The associates have been told they must achieve an hourly rate of £240 / hour and the exam fee is set at £30, and are scheduled for 20 minutes. The associates are prevented from making any variations to time or costings of examinations. 

Now the maths.

In one hour, 3 exams can be completed generating an hourly rate of £90, with surgery sunnig costs of £240 / hour, thats a loss of £150 per hour: £50 per examination.

In a patient population where each patient attending for an examination  requires treatment, it may possible to recoup the losses by increasing the  treatment fees to cover the £50 loss per exam.

In a well-maintained patient base, where very little treatment is indicated, how do you propose to cover your losses?

 Set the exam fee  correctly, Practice A must have an examination fee of £80 to achieve their hourly rate.

 “My patients won’t pay that!!!” I hear you cry. In my experience , with practices all over the country in wealthy and deprived areas, is yes, they definitely will,  provided everyone in the team knows and communicates the value of the examination. As soon as you focus on value not cost, everything changes.  To achieve this effectively you may wish your team to join us at The Ultimate Examination workshop, or Patient Centred -BEST CHOICES.

Others of you will say, the practice down the road is only charging £25.00 I can't compete. when your only distinguishing feature is cheaper than your competitiors it is a fast race to bankrupcy. 

Do you really want to join in?

If others haven't done thier calculations, and are plucking numbers from the air, going broke through ignorance, or are very cheap because they are cutting corners, do you want to be the same or different?

Be like Stella Artois - Reassuringly expensive

 

Questions I would like you to answer today.

 

What is your hourly rate?

What is your exam fee?

How long are your exams?

What hourly rate are you achieving on your exams?

What should your exam fee be?

Where is the value, how do we communicate it?

How are you communicating this information with everyone?

Should I just move on to a membership / maintenance plan that is easier isn't it??

 Great idea.

What long-term impact will it have on your practice if you set up your plan based on the wrong hygiene and exam  fees that prevent you from covering your hourly rate?

I actively encourage you to move on to a payment plan, only after you have set your hourly rates, exam and hygiene fees correctly.

 

Need help setting fees?

 

I work with aspirational, Dentists and Practice  Managers who are stressed, having financial difficulties, who want to make their practice profitable.

 

We create a personalised step by step programme so that you can have the career, the practice, the life you have always wanted.

 

You have worked hard now reap the rewards.

 

Become the dentist everyone loves to recommend.

 

• Book a 45-minute FREE CALL FRIDAY 1-2-1  coaching session today

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• Book a  free 30-minute Discovery call and find out  how we can help you and your practice. 07989 757 884 call today