Changes for 2008

[mfstudzinski]

Our industry changes so fast... I'm looking to see what kind of changes everyone plans on making for their labs in 2008. Have the doctors discussed any new directions with you especially the way the gold market has been? Just like the manufacturers do, I hope you all increase your prices for 2008. Let's hear about it!

[trisha]

Just like the manufacturers do, I hope you all increase your prices for 2008.

I would like the opportunity to increase my prices, but am hesitant to upset the apple cart. I have not had a price increase since August of 2004. In 3 years there has been many increases in manufactures prices not to mention gasoline for deliveries.

trisha

[RetainerDesigner]

Originally Posted by trisha

I would like the opportunity to increase my prices, but am hesitant to upset the apple cart. I have not had a price increase since August of 2004. In 3 years there has been many increases in manufactures prices not to mention gasoline for deliveries.

Trisha,
I bet you if you increased your prices you would not hear a peep from your dentist- clients. They are increasing their prices as I type this. I increased my prices at the beginning of 2007. I wrote a letter explaining the increases, (such as new Texas regulations were I had to move my lab out of the garage into a commercial building, gas prices and such) I may still have the letter on my computer if you want me to sent it to you. Most likely the dentist didnt even read it and if they did they shrugged their shoulders and threw it away. With your experience and your quick turn around you are more valuable to them then trying to find a new lab with lower prices. And if their is a Dentist that will drop you just because of prises, most likely they are a P.I.T.A and you will be glad to have them out of your hair.


So, in short
Raise your Prices Woman!

Cade

P.S. I can send you my pre-increase and post-increase price list if you want.

[TheLabGuy]

One question for you trisha, have you learned anything in 4 years.........if so, have you applied it to the way you fabricate your appliances. Of course you did, now it's time to reap the benefits. I raise prices ever year in almost everthing I do, you reap what you sew.

[Brian8]

We check our prices every year in January and some we raise some we do not, it depends on several things. One of which is what TheLabGuy stated. Others would be supply and demand, if there was a hire demand on alumina or zirconia as apposed to PFM then we raise accordingly.

As for letting the doctor know if you raise your prices... we do, but you do have to? do they tell you before they raise their prices, or does anyone tell you... my guess is no.

Brian

[JEmirzian]

Agreed......But how much do you increase?

Jay

[JEmirzian]

Very good point Brian. I have family who are dentists and I believe they increase prices every year for inflation.

I do have a question regarding price increases. Does anyone feel quality about raising prices? I want to give a great service at a fair price.

I consider myself a perfectionist and it can hurt me in the lab. I don't like to move on to the next step without the previous one finished to the best of my ability. I believe we should charge for our time, but how do you know where to balance price and service?

Jay

[JEmirzian]

Mary,
As for changes......We plan on offering Zirconia this year.

Jay

[trisha]

Good food for thought, thanks guys.
trisha

[Brian8]

Jay,

If you are asking, should you charge more for better quality...yes... but you have to keep in mind on where you want to take your lab. If you want to compete with lager labs that make quantity as opposed to quality then you may have to sacrifice in your price ... until your reputation for quality restorations is well known in your area. At that point you can slowly raise your prices to meet what you feel your work is worth.

My lab started with high quality restorations at a low price. Our prices are now set at above average for this area. We are becoming better known around our area because of our commitment to our high standards... and eventually we'll have our prices exactly where we feel they should be. Its always reassuring to us, when a doctor actually calls and TELLS us that we should be charging more.


Brain

[trisha]

Brian,

Its always reassuring to us, when a doctor actually calls and TELLS us that we should be charging more.

No complement better then that!

Congratulations to you. It sounds like you are reaching the goals you have strived for.

trisha

[mfstudzinski]

This is a great discussion. This is a huge topic for many labs. Through the years it has always bothered me that labs don't raise their prices. I had one lab that finally raised prices after about 4 years and the Dr. told her... well it's about time. I believe that many manufacturers raise prices between 3 & 5% a year. So for every increase around you, you are making less money. If you made 30K last year, why should you make 25K this year? I'm trying to get some numbers from some labs to see where people are at. I'll post when I hear feedback to let you all know.

[labdude]

A tough decision, and an easy one as well.
Lets see, I make say 300,000 last year, prices for needed items go up. Now this year, my income is down by 2,000. Why? Because someone out there( a lot of someone's most times) feels that they need a raise to cover their increase in cost as well.

edit: I don't make that much, just an example. I'm only half that.

People starting new, or maybe just a few years in a business, probably need a increase.
Those who can absorb the small % for while don't really need to increase, I mean 2 grand off of 300 grand is walking around money.

Writers strike going on is a neat example of increase and greed relation.
Guys making 20 million a year don't want to see their income go down by 300,000. They would lose this 300,000 to folks who want to make 200,000 a year insted of 100,000.
While these numbers don't come into play for most, what do you really need and what is really fair, or just greed.
The world at large is a greed driven place. It will level out eventually.
Our price increases here do open the door a little wider for all off shore business. As well as a price increase at a large lab opens the door for a small local lab to open thereby reomoving some of the burden of work from that large lab.
When you are at or near the top of the food chain as it were, if you want more, work more. Or hire and pay well the ones who help you business grow. You will see your percentage of the gross shrink as your income rises, if you do it right.

In the large view of things, want what you have, before you decide to go and get want you don't have. Keep it simple stupid. And look at things in a large scale.

Do away with blind greed, maybe we can then increase our time on the cosmic calendar from a few seconds to billions of years.
Don't do unto others because they did unto you.
Still, compete, remember, as you walk through the valley of death you shall fear no evil, because you are the meanist S.O.B. in the valley.
With a kind heart of course.

For me, I see no price increase just now. I work alone and am content. There are a few, mostly owners of a lab, who can produce at a rate only to be looked at as nearly unbelieveable by most.
We share our abilities with employees and show them directly the way to make $30 per hour instead of $25. Those particular lab owners can produce $100 per hour and more doing the same thing. There in lies the high income of not only hard work, but, extraordinary ability.

Most of us are not going to luck into something like say, Bill Gates. To bad IBM zigged instead of zagging. Maybe just the difference between a lot of heads working together, and one working alone, with a greater understanding of an issue,than the overly cautious understanding of a commitee.
Still, it is very possible for most anyone to achieve a very comfortable success, while not being greedy, just keeping up with costs. As reasonably as possible.

There.... now that should be clear as mud.
Mike.

[JEmirzian]

Well said Mike.....

[labdude]

I'm glad someone can make sense of that.
At my age, I keep reading it over and over, seems new to me! every time!