Return on Investment

Mar 8, 2022 | Jeanette Kern

So you think you need or want a new piece of dental equipment…

As dentists, we love the cool scientific advances that occur in our industry annually. It seems that from the beginning of our careers, new and improved techniques and equipment are evolving. The manufacturers create products to help us diagnosis, perform our procedures more efficiently, get better clinical and long term results, and give our patients a more comfortable experience.

So when your fix and repair bill is getting out of hand, or you are seeing the Patterson repair technician almost weekly, it’s common sense to upgrade your equipment.

OR you may have other reasons why you buy equipment and technology..

Here are just a few reasons:

1) you want to differentiate your practice in the community-be the first to own and promote it internally and market externally

2) You’d like to offer more services to your patient base and this allows you to deliver

3) You’d like to appeal to high-tech clientele who want time efficiency and state of the art treatment

4) You don’t want to be behind the times-obsolete offices do not appeal to Millennials or future buyers

5) You believe it will allow you to perform additional billable services that you currently refer out of your office

6) It will save you time. An example was the change from Halogen to LED curing lights

7) It will give you better clinical results. Example Diode lasers in your hygiene department

What are some reasons NOT to buy the newest technology or latest and greatest?

The learning curve-is it steep and how long will it take for you to master the technology? Can you get training in your own office?
Will your team embrace it? Yes they will IF you invest in their training
How long has the company/manufacturer been around? What is their customer service like? Do they have loaners if you have a problem? Warranties?
The expense. How long will it take to earn your investment back? Will you be able to make a profit before you’ve paid off the cost?
Will you use it? Many times if it is not already set up, or in another room, does it becomes too much bother to get it.
Can I afford it? Lease, purchase, finance.

The above 6 questions require you to do some Reflection. Only you know if you will implement and integrate it into the flow of your office routines.

Financially, look at what profits you will generate divided by the cost of the investment. How many “X”s will you have to perform to make the monthly payment? Is it do able or will it be a strain?

Just like a new car—we get excited about it, we drive it with a smile on our face, but with equipment—only buy it IF it will make you money. This can be done with saving you time or money, doing and keeping procedures in your office, and less obvious is the marketing value internally. If you do any external marketing, please make sure you highlight the new technology and state the benefit to the patient in your message.

Once it is in your office, there are a few things to do to ensure a successful Return on that Investment (ROI).

1) Train your team-online or live on how to use it, maintain it, and explain the benefits to the patients.

2) Set fees-list all the procedures you can do with this equipment/technology and inform your administrative team to bill out accordingly.

3) Find opportunities and cases to utilize the equipment.

4) Track cases-do this from the very start

5) track your ROI

6) educate your patients and create a perception of being a state of the art Practice.

7) Use IT!!