This Way To Profitville – That Way To Loss City

As a gardener with fairly extensive perennial gardens and very little time, my philosophy for those plants has been grow or die.

It’s an ugly truth that applies to our businesses also. Today over 90% of all dental practices are either plateauing or declining. The thing is, it doesn’t have to be that way. It’s important that you review the following profit calculator scenarios.

Scenario 1

You’re making $900,000 in annual revenue with a decent profit margin at $225K. You’re generating a nice flow of 23 new patients per month with a minor 2% marketing allocation. You can see that over five years, your revenue increases to $940,000 BUT profits decline by $50,000. If the numbers in “current year” look like your practice today AND you’re in a competitive market – the outcome will be far worse – and probably faster.


Scenario 2

Today you’re making $900,000 in topline revenue, but you decide to dig into your profit margin to add just 4% to your marketing expenditure. By next year you’re out of the J curve and you can expect annual revenue to increase to $1.3 million by year five and your profits to increase to almost ½ million. Yes, your profits will take a hit this year, but you had the cojones to go for it. Growth is yours.  


Don’t let scenario 1 happen to your practice. Call your Account Manager today to ensure that your marketing program is on target and on track to increase your profits. We can help. 

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