I often speak to dentists who want to raise their pay-as-you-go prices for patients.
If this includes you, here’s the process I recommend to ensure you set them at the right level…
First of all, ask yourself when was the last time you increased your prices?
Always look to make increases either at the start of the calendar year or your financial year.
If you haven’t increased your prices in the last three years, you should be looking at an increase in excess of 5%. Normally, you should raise them by 3% on an annual basis.
There is always sensitivity around certain price points.
For example if your exams are charged at £39 and your hygiene appointments are at the same price, you may feel nervous about breaking through the £40 barrier.
In this case you have the option to leave these prices as they are and raise your fees for your larger volume treatments at a higher level to achieve the overall 3% or 5% increase you are aiming for.
At some point, you will need to take the plunge and raise your exams and hygiene sessions to £40 or over, but you can decide when you are ready to do this.
To illustrate just what a powerful effect price rises have and how important they are, based on a £400,000 income, a 3% price rise represents an additional £12,000 annual profit for your business, which is £1,000 per month.
So do consider your prices and consider them regularly.
Remember if you need further assistance on this or any other financial matter, please contact Clear Vision on 01249 712074.
We’re here to help.