The Economics and Business of a Dental Office
We are excited to announce that we’re about to release our first Toothonomics podcast. We’ve got a few episode in production and plan to release two episodes a month, starting in August 2020. Like the rest of Toothonomics, our podcast will focus on the economics and business of running a dental office. We’ve got a […]
Continue ReadingWhen you work to increase sales of a certain treatment, service or product, it’s important to consider the marginal cost. Marginal cost is the amount of money, time, etc. it takes for you to produce one more of the service or product. This is separate from the fixed cost, which is the same whether you […]
Continue ReadingOn its surface, Costco seems like an odd place for a dentist to go to learn about how to run a dental office. Costco sells giant packages of toilet paper and cereal at a large scale. Dentists deal with individual patients and offer treatment plans specific to a given patient. But when we look a […]
Continue ReadingPeople owe you money. As long as you are in practice, people will always own you money. The money they owe is called accounts receivable. From the time you issue a bill to the time the person pays, the money is in accounts receivable. Basically, you’re giving the people who owe you money an interest-free […]
Continue ReadingEveryone knows that if you cut prices and don’t increase sales, your profit will go down. That’s basic math. But if you stop to examine how much you need to increase sales to allow for even a small price cut, it starts to get a bit scary. Kodak—the old film and camera company—did such a […]
Continue ReadingGood employees add value to your practice. Great employees can even make it shine. So, of course, you want to make sure those employees stick around. But that can be tough in a good job market. It can also be tough right now, since some employees may be concerned about contracting COVID-19 if they return […]
Continue ReadingBefore we jump into how diversifying revenue streams can help your practice, let’s look at what may be a more common example. We’ve all heard stories of the person who bought Amazon stock in 1998 or Apple in the early 2000s. They’re rich. But what about the person who bought Chesapeake Energy 10 years ago? […]
Continue ReadingWhat do Led Zeppelin and Cardi B have to do with the economics of a dental office? A lot, it turns out. Here’s how. Stay with me for a minute before I get to the dental part. The music industry was tanking a decade ago. Nobody was buying CDs anymore, and music execs struggled to […]
Continue ReadingYour office has revenue and hopefully your office has profit. Let’s look at the difference. Revenue is all the money you take in – from patients, insurance companies, sales of products, etc. If you add up all the deposits to your bank account each month, that is your monthly revenue. Profit is what’s left after […]
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