Running a successful dental practice means balancing operational efficiency with cost control. And this is a great time of the year to check club pricing and audit your expenses. Afterall, keeping a close eye on overhead expenses—like payroll, dental supplies, and lab fees—not only keeps your practice profitable but also helps you grow a thriving in-house membership club. By streamlining costs, you can offer better perks, competitive pricing, and long-term value for patients, making your membership plan a win-win for everyone.
Know Your Overhead Benchmarks
Overhead typically makes up 60–65% of your revenue. Here’s how it breaks down (percentology.com):
- Payroll: 24–28%
- Clinical Costs (e.g., supplies): 12–14%
- Facility Costs: 10%
- General Business Expenses: 11%
- Discretionary Spending: 0–2%
When your overhead is under control, you can reinvest those savings into enhancing your membership club—offering more value to patients while boosting your bottom line.
Optimize Payroll to Grow Your Membership Plan
Payroll is one of your largest expenses, typically 25–30% of revenue. (archfinancialplanning.com) To manage this:
- Cross-train staff to handle multiple roles and increase flexibility.
- Offer performance-based incentives to boost productivity without raising fixed salaries.
A well-trained, motivated team is key to promoting and managing your membership club effectively, helping patients see its value and commit long-term.
Cut Dental Supply Costs to Boost Membership Perks
Dental supplies should account for about 5–6% of revenue. (meetdandy.com) Save money by:
- Building strong relationships with suppliers to negotiate better prices.
- Implementing inventory systems to avoid overordering or waste.
Lower supply costs mean you can offer more attractive membership perks like discounts, free preventive care, or exclusive benefits.
Control Lab Fees to Keep Membership Prices Competitive
Lab fees should stay under 10% of your production. (dentaleconomics.com) Here’s how to manage them:
- Compare lab services to ensure you’re getting quality at competitive rates.
- Consider in-house solutions like CAD/CAM technology to reduce external expenses.
By lowering lab costs, you can keep membership fees affordable while maintaining profitability.
Use Technology to Streamline Membership Management
Investing in technology can save time, reduce costs, and make your membership club more appealing. Tools like practice management software and patient portals can:
- Automate scheduling, billing, and communication.
- Make it easy for patients to enroll, track benefits, and book visits.
A seamless, user-friendly experience encourages patients to join and stay loyal.
Review Finances Regularly to Stay on Track
Monthly or quarterly financial reviews help you monitor expenses and adjust your membership strategy. Partnering with a dental CPA or financial advisor ensures you’re making informed decisions to scale your practice and membership club efficiently.
Final Thoughts: Build a Stronger Membership Club
By managing overhead and improving efficiency, you can reinvest in your membership club—offering better benefits, affordable pricing, and long-term value. In today’s market, an in-house membership plan is a powerful way to attract and retain patients who want alternatives to traditional insurance. Smart cost management not only strengthens your practice but also positions your membership club as a valuable, cost-effective solution for your patients.
