With the growth of implants in our practices it’s wise to have a budget and inventory plan to maximize efficiency and keep overhead under control. Today I discuss what I’ve done in the past and what I do currently in my practice. Listen in for all of that and more on episode 42 of Business of Dentistry!
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When I first started my practice I didn’t do a lot of implants or other high-end procedures. I was building my reputation and growing my brand by connecting and becoming a member of my local community.
My practice saw about five or six implant patients a year and I ordered implants on an as-needed basis, usually two at a time. And I paid astronomical prices as a result, along with high shipping fees because I wasn’t proactive and didn’t have a system or better process in place.
When you’re starting out this may be the same for you, and it’s not a bad approach as long as you shift it as the demand grows. If you do multiple implants a year like I do, then I believe it’s wise to maintain an inventory.
In my practice, I do a much higher volume today and I’m able to get bigger discounts. That volume has increased because I wanted to do more of this procedure. So I set a goal to get more implant clients. Initially that goal was 50 in a year and then up to 100, and later on I set a goal of 150 implant procedures in a year.
Setting and achieving those goals helped, but I also had to decide how to deal with the inventory of all the implant equipment and related items. So my team and I looked at our collections per month and based our budget off that.
We thought we’d try to maintain our implant costs this way; anything related to implants we would include in this budget area and keep it as a separate line item. Initially we wanted to shoot for 3% of our collections so we could maintain that for our overhead and our budget in our current practice model.
In 2015 we were at 5.5% and this year we are at 5.6%. I think we were too conservative in our percentage of our budget aloted for implants. Looking at these numbers I think we need to increase to 5.5% or even 6% of our overhead collections to maintain our implant inventory.
On today’s episode I also share how we maintain our implant inventory, and what I recommend you do to maintain yours, as well as why it’s important to talk to your rep about volume discounts. There are certain times of the calendar year that are better to talk with your rep too, listen in to find out when those times are! It’s all here on episode 42 of Business of Dentistry.