Breaking Down the Costings of a One Doctor-Six Auxiliary Dental Office

In last week’s blog,  http://davidmoffet.me/2013/06/07/how-many-staff-members-do-you-really-need/   we discussed, or entertained the thought, of manning your dental office with as many team members as you really need to allow your day to run as smoothly as possible.

Today I’m here to tell you how to make the numbers fit so that you can have the best possible dental office in your town, in your county, in your state!!

I suggested in last week’s blog that the ideal number of team members for a one chair one doc dental office was six. Yes six! And I know you all think that’s way too excessive. Well after all, a lot of docs are getting by with just one person performing all roles required.

So let’s do the math….

Six staff, working in a comfortable environment, could cost the dental office between say, $240,000.00 and $300,000.00 in annual salary. On average. This is with a healthy mix of age, and experience.

Now we know from my earlier blog postings, http://davidmoffet.me/2013/01/24/dividing-up-the-dental-office-income-part-iii-of-doing-your-numbers/ that wages should amount to twenty percent of the dental office’s gross collections, so expanding on an average of say $270,000.00 a dental office should produce $1,350,000.00 to cover these salaries.

1.35 Million!!!!

Now that’s impossible I hear you say.

Well I say not!!

As you know, for the last eight years, I’ve consistently earned over one million dollars from the exertions of my own hands, working on average about forty weeks per year. And four-day weeks to boot!!

Now I didn’t do it out of one room with six team members, but I do believe that *that* is possible when you crunch the numbers.

You see 1.35 million is $30,000.00 per week working 45 weeks per year.

Divide that by five days and eight hours per day, and you’ve got an hourly production goal of $750.00 per hour.

And I say, with six team members, that will be easy!

Now let’s look at the benefits. In earlier blogs I suggested that Doctor’s Dental Draw should be 40% of gross collections. So take home pay for the Doc should be $540,000.00 per annum… now that’s nice.

Out of that gross collection there’s also company profit of 20%, meaning $270,000.00 to be either reinvested in the business or paid as dividend to the business owners, or a mix of both. And that’s very handy as well.

In reality, I think the perfect sized dental office is not far from this model.

I’d add a second chair for the doc, to minimize lost time during tear down and set up. A good hour per day can be saved by having the next patient seated and ready to go in the adjoining treatment room. Saving an hour per day increases productivity by $750.00 per day, $3750.00 per week or a staggering $168,750.00 per 45-week year!! That’s surely enough to justify the second chair.

I’d also add a third chair for hygiene, which would be a pure profit centre.

Unassisted hygiene should return two thirds of collections to the business as profit and one third will cover the hygienist’s salary. The two thirds is pure profit for the business.

The two extra chairs and hygienist would require no extra addition to the six team members already proposed in the ideal model.

Do you think this model is workable? I certainly do. I know, because I’ve done it. And you can do it too. I can teach you.

 

The Ultimate Patient Experience is a simple easy to implement system I developed that allowed me to build 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: david@theUPE.com

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