Quote:
Originally Posted by TheClutch
Thank you for the great inputs!
Based on your comments, I wanna make some assumptions. Tell me if I am off.
So basically, this Invisalign deal is not designed to make profits, but rather to bring new patients or some patients (who often do not go to see dentists regularly or go to different dentists).
The deal can cover some fixed expenses, yet the profits come from other things like check-up and whatever filling/cavity a patient has and needs to do.
Then, it can be assumed that the practice is most likely a new practice. If it is a practice been there for a long time, the market in the area is pretty bad. The practice is in the nice area so I guess there is a lot of competition. (safe to assume that no??)
But to offset the discount ($2000), services have to a little bit more expensive. But then how many new patients need $2000 worth of work at the dental practice usually? Do you guys know?
Then does a practice owner expect to recover the cost and make profits down the road? maybe when patients return after half a year or a year later? If that's the case, wouldn't be too much of financial burden on the practice? a year or half a year is still a long time.
Also, does manufacturers provide dentists some sort of discounts/promotions for new practices? That would help the cost too.
just random wacky thoughts of mine.
love to hear from you guys!
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It's a little of both. You're looking at $2k of work being probably prophy, FMX, a few restorations and a crown for a cash patient. So there is a potential for a new patient to need a fair bit of work prior to having Invisalign treatment.
The real trick of the Invisalign groupon is to get someone in the door and a body in the chair. If you're charging (average??), $7k for your Invisalign case and take $2.8k off. You're making $4.2k - lab fee of $1k. So you're making $3.2k off the Invisalign deal. So even though you've taken a big chunk out of your profits, you've made some money to help with your overhead. Plus, without the deal you're making $0.
Without the Groupon deal, you have no patient to do treatment on. With the Groupon deal, you have a patient to do treatment. Yes, you're "giving away" money in the discount. But with the discount, you're gaining a patient who is spending money on treatment.
So it boils down to : would you prefer a patient who is paying a smaller fee or no patient at all? In this economy, you're lucky to have the former.