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Patient Attraction Episode 244
Hi, Colin Receveur here and welcome to another week of the Patient Attraction Podcast. Today we’re going to look at how to answer when a patient says, “Can you give me a better price on that?” Stay tuned.
– Today is Monday, Oct. 27, and I want to discuss what happens when someone asks you to lower your fees.
– There are a lot of levels to this question, so let’s jump right in.
– First, there is the practical matter: How much profit margin have you built in to your fees?
– Obviously you have to cover your overhead costs: materials, staff time, hourly cost to keep the practice running.
– But then comes the “negotiable” part: how much do you pay yourself?
– So how flexible you are with your fee depends, in part, on how you set the fee in the first place.
– If your fees are bare minimum because you are a volume practice, then more than likely there is very little practical room for negotiation.
– If you have a healthy profit margin, then negotiation is still in play.
– Then whether to negotiate price becomes a more abstract matter.
– Issues such as “what is your time worth,” “what is the service worth” and “how badly do you want the patient” come into play.
– The reason these are more abstract questions is because they are subjective and influenced by many factors.
– For instance, if your practice is slow and a patient comes in needing $20,000 in dental work but says they could pay $15,000 cash if you’ll just “work with me on the price,” well, that may be very tempting to take.
– Conversely, if you have a thriving practice where money isn’t an issue, but you have the chance to get a local celebrity or someone who could give you great word-of-mouth advertising, is it worth giving them a discounted price to keep them from going to a competitor?
– These are questions you’ve got to decide for yourself.
– But I will tell you this:
– I am not a big fan of PRICE negotiation.
– I believe that if you have set a fair price for your service, you should stick with it.
– You have financial obligations and plans, both of which can be derailed if you start discounting your fees.
– I also believe that discounting your fees reduces the value of your services.
– That’s because word will soon get around that your fees aren’t REALLY your fees and can be negotiated.
– Then suddenly your fees are nothing more than a starting point.
– What I am in favor of is negotiating TERMS.
– For instance, you can work with people on payment plans.
– You can work with them on different solutions that meet their needs; perhaps not as quickly, not as conveniently or maybe not even as well.
– So while implant-supported dentures may not be as good as All-on-4 dental implants, they’re still better than old-fashioned removable dentures – and more affordable than the All-on-4.
– Or you could negotiate ADDITIONAL services, such as free or discounted follow-up care, cleanings or maintenance.
– Ultimately, patients need to understand the VALUE of your work over the cost of your work.
– They need to understand that you are offering them top service, high-quality work and the best price you can.
– If they change one, the other two will have to change as well.
– Come back tomorrow and we’ll talk about pay per click advertising.
– Until then, keep moving forward.