Jim Du Molin offers dental marketing news and dental practice management advice for dentists.
Scottish Dentists Cash in on Cosmetic Craze
It’s a deadly toxin whose paralytic properties make wrinkles disappear instantly, and consumers love it. In Scotland, more and more dentists are cashing in on the popularity of Botox. With each treatment costing hundreds of dollars, the profits are hard to resist. However, some are concerned that dentists aren’t receiving adequate training before offering the injections in their dental practices.
Examine the Bottom Line When Considering a Hygienist and/or Associate
Editorial by Jim Du Molin
Have you ever wondered what your real profit is on your hygienists or dental associates? Have you ever wondered whether a hygienist can be more profitable to you than an associate? If you have an extra operatory available, would it be more profitable to hire a dental associate or another hygienist?
In last week’s column, I explained how you can earn a profit of $493 per day from a hygienist who produces $962. How much would an associate have to produce to yield the same profit? Here again, the Comparative Value Analysis is helpful.
Comparative Value of One Day’s Production
| Provider: | — Hygienists — | Associate | ||
| Mary | Tim | Goal | Equiv. | |
| (Commission) | (Salary) | (Per op) | ||
| Production | $700 | $700 | $962 | $1,176 |
| Collections (96%) | 672 | 672 | 924 | 1,129 |
| Less…variable costs (9%) | – 63 | – 63 | – 87 | – 106 |
| …commission (41%) | – 288 | n/a | – 482 | |
| …salary | n/a | – 288 | – 313 | n/a |
| …employer taxes (10%) | – 29 | – 29 | – 31 | – 48 |
| Profit | $292 | $292 | $493 | $493 |
Let’s assume that you would pay the dental associate 41% of his or her production. (In reality, we normally recommend that the associate be paid a percentage of his collections. However, we will keep things simple here.)
Further assume that the associate would pay his or her own lab fees and assistant, and that you would not have to add any front desk staff to handle the associate’s patients and scheduling.
Your net profit rate on the associate would be as follows:
Net Profit Rate on Associate
| Collections | 96% |
| Less: variable costs | – 9% |
| Less: commission | – 41% |
| Less: payroll taxes | – 10% |
| Profit | 36% |
The associate would have to produce $1,176 per operatory used to give you the same profit as a hygienist. If the dental associate used two operatories, he or she would have to produce $2,352 per day to be as profitable as hygiene would be in those same operatories.
In our experience, it is easier to bring hygiene production up to $960 per day than it is to find a dental associate capable of consistently producing $1,176 in each operatory, or $2,352 in two operatories. Also, the associate must have a sufficient flow of patients to make this production level possible.
When structuring both hygiene and associate compensation, we advise that you compare what the hygienist or associate is earning on the relationship, compared to what the senior dentist is earning. The relative compensation levels should reflect a fair distribution based on the parties’ investments of time, energy, and financial risk.
For help in increasing hygiene production, a key element to increasing doctor profitability, contact J.P. Consultants or Advance Hygiene Concepts.
Dentists Share Their Most Effective Marketing Strategies
The Wealthy Dentist asked dentists about which dental marketing campaigns have been most successful for their dental practices. The clear winner was direct mail marketing. Dentists have also had good luck with Yellow Pages listings and TV ads. One dentist was thrilled with his new dental practice signage, saying, “60 new patients per month with the new sign!”
Here are the top types of marketing campaigns for dental practices:
“We sent out a personal holiday card with a short letter of thanks and future exciting information to present and past patients we hoped to reactivate,” wrote one dentist. “It did not go to the few difficult patients. We had a huge response of reactivation and new referrals from present happy patients!”
Read the complete dental marketing campaign survey results…
Perhaps you don’t have time to search Google News every day for the latest dental headlines. Not to worry! That’s what I’m here for.
You’ll find press releases (Dentist completes veneer training), local news (Local dentist rebuilds after fire), consumer information articles (Conscious sedation eases dental fear), and business updates (3M buys dental products maker Imtec). Most of this information will be of little value to you.
However, if you look carefully, you’ll find some fascinating bits of dental news. The news is always filled with scandalous tales of people doing shocking things. If anyone involved in the story was a dentist, you can be sure Google News will let you know.
So, without further ado, here are this week’s most scandalous headlines!
A Louisiana dentist found guilty of tax evasion has been sentenced to two and a half years and ordered to pay $155k in restitution. And with the verdict, I’ve lost two of my favorite tax-avoidance strategies!
Dr. Louis Genard has not filed a tax return in 12 years. In 1997, he filed an affidavit declaring himself a “sovereign citizen of the Republic of Louisiana,” renouncing his US citizenship, and declaring that the IRS had no authority over him.
The IRS, however, disagreed with the doctor’s assessment and filed suit against him. He tried to have the charges dismissed due to his diplomatic immunity as an “Ambassador and Citizen of the Kingdom of Heaven under its King Jesus the Christ,” but the court was unsympathetic.
Unfortunately for Dr. Genard, the US justice system doesn’t give points for creativity.
Chicago dentist Dr. Gary Kimmel allegedly pocketed at least $372,000 in cash for his role in a prostitution ring. The doctor’s saga began several years ago, when a man who turned out to be a pimp responded to his apartment rental ad. The doctor leased cars for and rented apartments to at least three pimps. He also performed dental work for cash on the pimps and prostitutes, but never reported this income.
Dr. Kimmel is pleading guilty to conspiracy to commit money laundering. The plea agreement will require the dentist to pay $400,000 and serve several years of jail time.
Dr. Victor Patacchiola has a steady stream of patients in and out of his London dental practice. UK’s The Sun began investigating his practice after multiple patients claimed to have heard groans and other raunchy noises. “It sounded like someone having sex. It was really off-putting,” The Sun quoted a patient as saying.
It turns out that the dentist’s girlfriend (a blonde who goes by the name of “Tiny”) works upstairs from the dental practice, performing strip teases and sexual performances. The doctor defends the setup, claiming that Tiny is a therapist and everything is completely legal.
Legal? Maybe. Distasteful? Definitely.
Every week, dental stories pop up in a few common areas…
Unlicensed Dentist Gets Busted
This week: Ottawa Man Pleads Guilty to Unlicensed Dentistry
Dentist Accused of Shoddy Work
This week: Bungling Dentist Left Woman Looking like ‘Bride of Dracula’
Dentist Accused of Misconduct
This week: CA Dentist Accused of Sex Assault on 19 Male Patients
Dentists Face Stress
This week: Dental Surgeon Takes Suicide Leap, Blames “Tremendous Stress”
Somewhere, A Dentist Does Something Stupid
This week: Dentist and New Wife Face Charges for Wedding Night Brawl
Should dental implants should be a formal dental specialty? Three of four dentists (77%) say no.
“I don’t think it is necessary to make this a specialty since oral surgeons, periodontists, prosthodontists and general dentists like me all place dental implants, and many restore,” offered one doctor. “I do think fellowship training is good, and credentialing is valuable.”
Though 85% of general dentists oppose having implant dentistry as an official specialty, only 67% of specialists feel the same. While some feel that dental implant surgery should only be done by a specialist, most agree that general dentists are fully capable of restoring implants.
Here are some further comments from dentists on dental implantology:
Read more: Dental Implants Should Not Be a Specialty, Say Dentists
Jim Du Molin is a leading Internet marketing expert for dentists in North America. He has helped hundreds of doctors make more money in their practices using his proven Internet marketing techniques.
 |
|
|
 |
Setting Dental Fees for Maximum Case Acceptance
You deserve a raise! We offer strategies on how to set fees.
$10,000 a Month Chart Audit
Extract money from your files! Includes complete forms for conducting chart audits.
DIY Office Brochure
Create your own brochure with our video lesson, template, and pre-written content.
Practice Answering Machine
A proven marketing strategy for your practice answering machine.
Maximize Case Acceptance
Increase dental patient case acceptance by 25% or $125,000.
Maximize Your Marketing: Target High-Value Patients
Amp up your marketing and get the new patients you want.
Turn Your Front Desk into a Marketing Machine
Convert high-value new patient leads into dental appointments.
Structuring a Dental Associate Program
Learn how to convert your practice into cash at retirement.
Designing the $1,000,000 Dental Practice Sign
Signage is the #1 lowest-cost way to acquire new patients.
Internal Marketing & Communications
This core strategy targets your existing patients.
Doctor-to-Doctor Marketing
Generate referrals from other medical practitioners.
