The Five Major Advantages of Charging More for your Services.
I often get asked; in fact it is a question I am asked on a weekly basis from my clients, on where they should pitch the prices of their services compared to the competition i.e. other dental practices in the area. I often hear stories of practices lowering their prices, because the other Practices in the area were doing so. One Practice told me recently that they lowered the price of their teeth whitening to £195 because the other practice in their street had done the same. She was bombed out, but she was more or less delivering the treatment at a loss.
Price is always going to be an issue, but never is the major issue. The problem I find is that just because you might get the odd telephone call of people shopping around, Practices feel everyone is obsessed with the cheapest and that price is a major issue. We are in a recession and people are more cautious, but there are many advantages of charging more for your services.
1. You will increase your Profits.
This is the obvious one. However, most people don’t realize the impact it can have. A small price increase say of 5%, can have a significant impact on the profits, by up to 15% if you manage to keep the costs more or less the same. .
2. Better quality of Patient
It is another obvious one. If you charge higher prices, you will attract a better class of patient to your practice. No more tyre kickers, no more unappreciative patients. People that respect and value what you do. That alone has got to be worth charging more.
3. More Profit, means more Investment
If you make more profit, you can make more investment into the practice. For example you purchase better equipment, invest in the surgery and reception areas. Most importantly, you can attract better quality staff to work for you, because you can pay more. Better staff means better patient care and it goes on.
4. You can spend more time.
If you charge higher prices, you can invest more time in building relationships with your patients and more time when you deliver the dentistry. You will enjoy your day more. This has got to be a major bonus.
5. It will give you more self confidence.
I can promise you one thing, your self confidence and that of your team will grow, because you are getting properly awarded for the work that you do. Have you ever delivered some treatment to a patient and you know that you are not getting properly rewarded for the work that you do. It deflates your self confidence and you cannot put a price on having more self confidence.
There you have it – five major advantages of charging more. If you get together with your team you probably could come up with more advantages. Don’t be the cheapest in your town, not only will you make the least amount of profit, but you will be attracting all the other patients that the other practices don’t want and that cannot be good for business.
