In my 36 page Special Report I explain in detail how I was able to increase my Dental Fees a whopping 78 percent over an eight year period.
And it’s simply just a matter of using the Pareto Principle, and applying it to your Dental Office.
We all know *OF* the Pareto Principle.
It’s commonly called the 80-20 Rule.
The Pareto Principle, named after economist Vilfredo Pareto, states simply that for many phenomena, 20% of your invested input is responsible for 80% of the results obtained. Or, to put it simply, 80% of consequences stem from 20% of the causes.
In your Dental Practice it’s easy to see where the 80-20 Rule applies:
- 80% of your income comes from 20% of your customers.
- Conversely, only 20% of your income is generated by the remaining 80% of your customers.
- Also, 20% of your time generates 80% of your income.
- Similarly, a whopping 80% of your time is spent generating the remaining 20% of your income.
- How’s this? The “difficult” 80% of your patients produce only 20% of your income.
- And the pleasant 20% of your patients produce 80% of your income.
So how can we use the Pareto Principle to help us build and create the Dental Office of our dreams?
I once heard a Dental Speaker ask his audience this question:
“What would happen to your Dental Office if you doubled your fees?”
He then answered:
“You’d probably lose only half of your patients.”
“So”, he said, “your income would remain the same.”
“But you’d be doing half the work. And you’d have half of the headaches.”
It’s an interesting proposal.
I’d contest that by doubling your fees you’d eliminate a far greater percentage of your problem patients.
What I found, as I gently increased my fees on a regular basis over an eight year period was that with each gentle increase a smaller percentage of my more difficult patients would decide to go elsewhere for their dentistry.
So over time, the fee increases resulted in a “cleansing” of my patient database.
As the eighty percenters started to reduce in number, the number of top twenty percenters began to grow to compensate for those patients departing.
And so my collections grew disproportionately relative to the size of my patient base.
Excitingly, the regular fee increases also resulted in me attracting more new clients who were more like the top twenty percenters of my patients.
And here’s the kicker:
A lot of dentists out there are fearful of upsetting those eighty percenters.
They’re fearful that one whining patient will be upset and leave their practice and go elsewhere.
When that sort of fear is your driver, I’m here to tell you that *YOU* are not in control of your practice.
Sadly, your practice is controlling you.
I used gentle fee increases to crush this anachronistic paradigm and send it packing.
In an average part of Sydney.
With average patients earning average incomes living in average sized homes and driving average cars.
Beverley Hills it was not.
Double Bay it was not.
I was able, through gentle regular fee increases, to not only keep up with inflation but to get ahead of inflation and rising costs so that I had full control of my own destiny.
I was able, through this process, to attract and keep more clients like my top twenty percenters and dramatically grow my collections and my profits.
I didn’t invent the 80-20 Rule.
It’s Pareto’s model.
However, it’s a very sound Principle to consider and apply to make sure that your Dental Office does not stagnate and go backwards.
It’s use and application are imperative if you are ever to build the Dental Office of Your Dreams.
The Ultimate Patient Experience is a simple to build complete Customer Service system in itself that I developed that allowed me to create an extraordinary dental office in an ordinary Sydney suburb. If you’d like to know more, ask me about my free special report.
Email me at email@example.com
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