Dentist -- highest overhead out of any other profession

[Slack3r]

Overhead does not include labor costs.

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[Lindbergjb]

I was watching Chris Rock standup the other day on HBO and he was going on and on how ridiculous it is that HIS (I mean, huge famous comedian that he is) neighbor is a dentist. But of course he attributed it to his dentist being white. haha oh boy...

Just thought it was interesting that he brought up dentists because he feels that of course a black comedian like himself should be WAY wealthier than a dentist... then I changed the channel.

Here is the link:
http://www.youtube.com/watch?v=9Kxp9CEJeAg

 

[Ranelar]

My understanding is that >30% of pure profit (after taxes, employees, etc) is considered a successful year. So make a million, take home 300k. Not really that bad. My dentist works 3 days a week and intimated that his "million dollar practice" is earning him >30%, and he's the only dentist there, with something like 10 assistants/hygienists/secretary/book checker.

 

[koreanboi92]

So from I understand, the overhead cost is the cost of running the practice?


If one owned the actual property/building, would the overhead cost be somewhat lower?

 

[219122]

It depends on your mortgage payment, property taxes etc. You will always have operating costs - whether the costs are named rent, utilities, insurance or mortgage, utilities, insurance there is still massive overhead. There are also more risks that you take on as a building owner (much like you take on more risks and responsibilities as a homeowner vs renter) that are a trade off to the potentially lower cost; remember time = money too.

 

[BiomajorPreDent]

So I'm assisting for this dentist that just started her practice... but graduated dental school 8 years ago. And she said, "Dont go to dentistry, ADH03. Dentists have the one of the highest overhead out there. You really wont be earning much cuz 2/3 of what patients pay goes to your bills for the practice. "

Is this true or is it just her? Cuz I really like dentistry, but if I'm going to commit time and money, I need to know that I'm making a good investment for my future. AVG dental salary is around $150,000. Is 2/3 of that going to the practice/taxes/expenses?

It's bugging me cuz she tells me every other day I work at her practice!!!

OP, As was said by everyone else, the dentist you're following is not only a bad mentor for being so negative like that, but has a very bad business sense. This is the platinum age of dentistry. The fact that she JUST started her practice is probably why she isnt doing that well.

I have a bunch of dentists in my family and the truth is just as everyone else has stated. Overhead varies from 50-60%.

The best news is that there really is a not limit on your potential income considering (when you build a strong enough patient base) you can hire more hygienists (which pay for themselves and bring you $), and you can take on associates (again $$)

Money of course shouldnt be the primary goal of dentistry as you can do plenty of things that dont require 4 years of intensive grad school and several hundred thousand dollars in debt, but there is money in the field if you are smart.

Also..I briefly read something about getting an MBA if you want to be rich. I am NOT out to bash the MBA's but with this economic meltdown, MBA's are a dime a dozen and they are without jobs.

I have never met a starving dentist

Bottom line: dentistry is cool as hell, you have job security, a great income potential, you're helping people, and you can be your own boss

What more could you ask for???

 

[koreanboi92]

oh. I mean to sound all spoiled, but if I decide 100% that I want to be a dentist, my parents are willing to pour a few million $ into a brand new private practice. I don't know if this makes sense, but I was wondering if getting a financial boost to a new practice will have a lower overhead cost than normal.

 

[BiomajorPreDent]

oh. I mean to sound all spoiled, but if I decide 100% that I want to be a dentist, my parents are willing to pour a few million $ into a brand new private practice. I don't know if this makes sense, but I was wondering if getting a financial boost to a new practice will have a lower overhead cost than normal.

It won't if what you are talking about is one lump payment to build the practice. You would need to have money coming in every month. Overhead includes costs of materials and supplies required to do procedures, and it is a monthly expense. I am not sure if paying salaries to employees counts as overhead technically but you also need to be aware of that monthly expense as well.

Plus with the nicest practice in the world, you probably wont have a large patient base if you do that the day after you graduate dental school

 

[Shingo123]

oh. I mean to sound all spoiled, but if I decide 100% that I want to be a dentist, my parents are willing to pour a few million $ into a brand new private practice. I don't know if this makes sense, but I was wondering if getting a financial boost to a new practice will have a lower overhead cost than normal.

A few million? That might not be necessary. I would imagine that opening a tip top practice should not cost a few million, but then again, it depends on your location.

I will assume that you won't have a large student loan like the rest of us, plus you will get a practice that is paid for?

You will certainly be ahead of the game.

 

[koreanboi92]

I am looking to open up a practice in Ventura county because I lived there my whole childhood. My top choice would be Ventura as it is located next to the beach. I always thought a career as an orthodontists would also be good. Would opening up an orthodontics practice cost more than a gp practice?(assuming I get into an ortho residency,lol).

 

[longhornpride]

I am looking to open up a practice in Ventura county because I lived there my whole childhood. My top choice would be Ventura as it is located next to the beach. I always thought a career as an orthodontists would also be good. Would opening up an orthodontics practice cost more than a gp practice?(assuming I get into an ortho residency,lol).

start focusing on this part. everything else will fall in place.

 

[Ballardista]

I think its really funny that these dentists seem to think you can make just much with a business degree or an MBA--coming from someone who HAS a business degree and a sister with an MBA, I assure you this is not the case. I started my first job at $30,00 with a peak payout of about $50,000 with that company. And my sister with the "all mighty" MBA? Makes $50,000 working a crappy job 60+ hours a week with no end in sight.

Thanks, but I'll take dentistry and the overhead. Overhead with a job, is way better than business degree and unemployed.

 

[BiomajorPreDent]

I think its really funny that these dentists seem to think you can make just much with a business degree or an MBA--coming from someone who HAS a business degree and a sister with an MBA, I assure you this is not the case. I started my first job at $30,00 with a peak payout of about $50,000 with that company. And my sister with the "all mighty" MBA? Makes $50,000 working a crappy job 60+ hours a week with no end in sight.

Thanks, but I'll take dentistry and the overhead. Overhead with a job, is way better than business degree and unemployed.

Exactly.

 

[TedyBearSuicide]

I think its really funny that these dentists seem to think you can make just much with a business degree or an MBA--coming from someone who HAS a business degree and a sister with an MBA, I assure you this is not the case. I started my first job at $30,00 with a peak payout of about $50,000 with that company. And my sister with the "all mighty" MBA? Makes $50,000 working a crappy job 60+ hours a week with no end in sight.

Except DDS/DMD is DDS/DMD no matter what U.S. school you graduate from, not so much with MBA and Law school.