Expense Ratio - Labor

evanosu

evanosu

Active Member
Full Member
Messages
324
Reaction score
18
Approximately what percentage on the Removable side of things is considered the "industry standard" in regards to Labor Expenses vs Sales?

25%
30%
50%
etc.
 
sidesh0wb0b

sidesh0wb0b

Well-Known Member
Donator
Full Member
Messages
5,649
Reaction score
649
Approximately what percentage on the Removable side of things is considered the "industry standard" in regards to Labor Expenses vs Sales?

25%
30%
50%
etc.
i wish i had these numbers, its gotta be up there. theres a lot of labor that goes into each of those nickel and dime billable steps. just invoices a whole lot of labor worth in cases today....not a whole lot in sales sadly. will be watching to see what others can provide!
 
I

Inna-Hurry

Active Member
Full Member
Messages
395
Reaction score
53
Back in the late 80's the lab I worked at strived for 39%...... Reality was about 45%. My lab today????? 60% lol.
 
X

XxJamesAxX

Well-Known Member
Full Member
Messages
579
Reaction score
216
Approximately what percentage on the Removable side of things is considered the "industry standard" in regards to Labor Expenses vs Sales?

25%
30%
50%
etc.

For us peak sales months payroll can be as low as 30% but slower times of the year we can see that number creep up to 50-55% range. I will say we generally don’t cut hours back during the slow months we just find other things for employees to do like cleaning/Maintence which would help keep the percentage lower during the slow months. But as long as we’re breaking even I don’t like cutting hours.


Sent from my iPhone using Tapatalk
 
sidesh0wb0b

sidesh0wb0b

Well-Known Member
Donator
Full Member
Messages
5,649
Reaction score
649
For us peak sales months payroll can be as low as 30% but slower times of the year we can see that number creep up to 50-55% range. I will say we generally don’t cut hours back during the slow months we just find other things for employees to do like cleaning/Maintence which would help keep the percentage lower during the slow months. But as long as we’re breaking even I don’t like cutting hours.


Sent from my iPhone using Tapatalk
so prob avg over the course of a year, 40%?
 
TheLabGuy

TheLabGuy

Just a Member
Full Member
Messages
6,223
Reaction score
817
The last time I checked pnl's, it was holding steady around 65%. Granted, my peeps are paid very well and all are CDT's as well. It's high, but as we introduce some digital into that department it will go down some.
 
X

XxJamesAxX

Well-Known Member
Full Member
Messages
579
Reaction score
216
so prob avg over the course of a year, 40%?

Just ran the report for last year 42% including bonuses.

I will add the only health care benefits we provide is a accident plan thru Aflac. So we do not have that expense.


Sent from my iPhone using Tapatalk
 
I

Inna-Hurry

Active Member
Full Member
Messages
395
Reaction score
53
Just ran the report for last year 42% including bonuses.

I will add the only health care benefits we provide is a accident plan thru Aflac. So we do not have that expense.


Sent from my iPhone using Tapatalk


THIS COMPANY KNOWS HOW TO ROLL..... Your numbers are great... A 3 year ave. there and I'd be looking HARD for a buyer. lol.

My hat's off to you sir.

Now for the pig in the room..... I wonder how many techs/ business owners her do not have a clue (OR CARE) what we're talking about???!!!????
 
sidesh0wb0b

sidesh0wb0b

Well-Known Member
Donator
Full Member
Messages
5,649
Reaction score
649
Just ran the report for last year 42% including bonuses.

I will add the only health care benefits we provide is a accident plan thru Aflac. So we do not have that expense.


Sent from my iPhone using Tapatalk
thats pretty decent James. i need to sit down after all these up front expenses and see what the annual numbers will be. at this stage we are dying for another tech to help out mainly in removables but as always they are hard to find!
 
sidesh0wb0b

sidesh0wb0b

Well-Known Member
Donator
Full Member
Messages
5,649
Reaction score
649
THIS COMPANY KNOWS HOW TO ROLL..... Your numbers are great... A 3 year ave. there and I'd be looking HARD for a buyer. lol.

My hat's off to you sir.

Now for the pig in the room..... I wonder how many techs/ business owners her do not have a clue (OR CARE) what we're talking about???!!!????
just getting removables rolled out again, and we added a ton of extra expenses to get on the leading edge of technology. until those costs settle in some, i dont have those numbers. but by this time next year i will have a good handle on it!
 
JMN

JMN

Christian Member
Full Member
Messages
12,205
Reaction score
1,884
Running about 40.6% here for last year, but I'm also like that German guy, Hahn.

Solo.
 
X

XxJamesAxX

Well-Known Member
Full Member
Messages
579
Reaction score
216
THIS COMPANY KNOWS HOW TO ROLL..... Your numbers are great... A 3 year ave. there and I'd be looking HARD for a buyer. lol.

My hat's off to you sir.

Now for the pig in the room..... I wonder how many techs/ business owners her do not have a clue (OR CARE) what we're talking about???!!!????

Thanks, keeping the numbers in check is what I credit for helping us survive the many dips we have faced in our 11 years of being open. Know the numbers and make sure they make sense. It’s easy when your booming. The dips and pullbacks will show you if what your doing is working.

No one asked but I’ll share a couple thoughts about this topic.

My theory has always been to keep my own pay as low as possible, I have a base pay then depending on the performance of the lab for the month i have a tiered bonus system in place. My base pay is surprisingly low by most standards I’m sure but it keeps me from overpaying myself when I shouldn’t be. It also allows me to make a choice at times between taking home the “bonus pay” and reinvesting it back into the Lab which I often do.

Another bonus for me is I live in a fairly low cost of living area.



Sent from my iPhone using Tapatalk
 
JMN

JMN

Christian Member
Full Member
Messages
12,205
Reaction score
1,884
My theory has always been to keep my own pay as low as possible, I have a base pay then depending on the performance of the lab for the month i have a tiered bonus system in place. My base pay is surprisingly low by most standards I’m sure but it keeps me from overpaying myself when I shouldn’t be. It also allows me to make a choice at times between taking home the “bonus pay” and reinvesting it back into the Lab which I often do.

Another bonus for me is I live in a fairly low cost of living area.
Sent from my iPhone using Tapatalk
Bingo, exactly the same here.
 
sidesh0wb0b

sidesh0wb0b

Well-Known Member
Donator
Full Member
Messages
5,649
Reaction score
649
Thanks, keeping the numbers in check is what I credit for helping us survive the many dips we have faced in our 11 years of being open. Know the numbers and make sure they make sense. It’s easy when your booming. The dips and pullbacks will show you if what your doing is working.

No one asked but I’ll share a couple thoughts about this topic.

My theory has always been to keep my own pay as low as possible, I have a base pay then depending on the performance of the lab for the month i have a tiered bonus system in place. My base pay is surprisingly low by most standards I’m sure but it keeps me from overpaying myself when I shouldn’t be. It also allows me to make a choice at times between taking home the “bonus pay” and reinvesting it back into the Lab which I often do.

Another bonus for me is I live in a fairly low cost of living area.



Sent from my iPhone using Tapatalk
as owners we often get some additional benefits (and long hours) that come with business ownership. i dont need to post them all here for everyone, but simple stuff like business cell phone, business vehicle, etc are some perks that dont always show up on the income side of things which allows us to keep our paychecks smaller if/when we choose.
 
I

Inna-Hurry

Active Member
Full Member
Messages
395
Reaction score
53
thats pretty decent James. i need to sit down after all these up front expenses and see what the annual numbers will be. at this stage we are dying for another tech to help out mainly in removables but as always they are hard to find!

The vetted, true box to box ability denture guys ARE out there.... in small numbers.... but you have to be willing to pay them well... VERY well. Unfortunately due to the strangulation of prices paid out by insurance companies paying a removable guy what he's worth is counter-productive financially. To employ that guy and pay him for his knowledge as well as what he can do may not make sense to your accountant.
 
sidesh0wb0b

sidesh0wb0b

Well-Known Member
Donator
Full Member
Messages
5,649
Reaction score
649
The vetted, true box to box ability denture guys ARE out there.... in small numbers.... but you have to be willing to pay them well... VERY well. Unfortunately due to the strangulation of prices paid out by insurance companies paying a removable guy what he's worth is counter-productive financially. To employ that guy and pay him for his knowledge as well as what he can do may not make sense to your accountant.
that goes just the same for a good c/b guy.
 
X

XxJamesAxX

Well-Known Member
Full Member
Messages
579
Reaction score
216
The vetted, true box to box ability denture guys ARE out there.... in small numbers.... but you have to be willing to pay them well... VERY well. Unfortunately due to the strangulation of prices paid out by insurance companies paying a removable guy what he's worth is counter-productive financially. To employ that guy and pay him for his knowledge as well as what he can do may not make sense to your accountant.

I tell my employees Unfortunately I can’t pay you what your worth, I also do not get paid what I think I am worth, but that is the situation we’re in. Not just me but for the most part our industry as a whole. I try to offer a competitive wage for our area, wages inline with what local factories pay, with the perk of hopefully they have a better work environment working with us.

Just talking salaries, there is not many industries out there that if I had chose it instead and put the time/work into it that I have our industry that I would not be making a higher salary then I am today. Working for myself or someone else. I truly believe that and it is sad. But it’s the way it is...


Sent from my iPhone using Tapatalk
 
sidesh0wb0b

sidesh0wb0b

Well-Known Member
Donator
Full Member
Messages
5,649
Reaction score
649
I tell my employees Unfortunately I can’t pay you what your worth, I also do not get paid what I think I am worth, but that is the situation we’re in. Not just me but for the most part our industry as a whole. I try to offer a competitive wage for our area, wages inline with what local factories pay, with the perk of hopefully they have a better work environment working with us.

Just talking salaries, there is not many industries out there that if I had chose it instead and put the time/work into it that I have our industry that I would not be making a higher salary then I am today. Working for myself or someone else. I truly believe that and it is sad. But it’s the way it is...


Sent from my iPhone using Tapatalk
so true on all aspects.
 
sidesh0wb0b

sidesh0wb0b

Well-Known Member
Donator
Full Member
Messages
5,649
Reaction score
649
a few things I do here to make "work" a little more enjoyable.... M-Th 10 hour days, so as long as we arent drop dead busy, 3 day weekends for the techs.
i buy the lab lunch, a lot. but not like pizza all the time, i have my smoker and a giant grill here. we smoke and grill a LOT, especially in the summer. ribs, wings, sausages, burgers, dogs, you name it we love it. and bonuses/work functions. last year i took the entire lab to Gatlinburg for a 3 day weekend, rented a nice cabin and we all went wine/distillery touring. had a freaking blast!
just because the dollar tag isnt huge, doesnt mean that the lab environment has to be garbage. we want to enjoy work. maybe especially since we dont think we are making what we should be making for constructing patient specific oral healthcare appliances.
 
I

Inna-Hurry

Active Member
Full Member
Messages
395
Reaction score
53
I tell my employees Unfortunately I can’t pay you what your worth, I also do not get paid what I think I am worth, but that is the situation we’re in. Not just me but for the most part our industry as a whole. I try to offer a competitive wage for our area, wages inline with what local factories pay, with the perk of hopefully they have a better work environment working with us.

Just talking salaries, there is not many industries out there that if I had chose it instead and put the time/work into it that I have our industry that I would not be making a higher salary then I am today. Working for myself or someone else. I truly believe that and it is sad. But it’s the way it is...


Sent from my iPhone using Tapatalk
If this is true-- "I also do not get paid what I think I am worth, but that is the situation we’re in." why in the heck are you still doing this? What changes are you implementing to get proper compensation and change your situation? Now? Tomorrow? Next week?

In our industry I truly believe these days of artistry are numbered and the computer is coming right to the Dr's. offices. Make money whille you still can. RAISE YOUR PRICES.
 
Top Bottom