Labor Costs vs Supplies

[evanosu]

Hi All,

We're a newer Removable lab and I was wondering for those who have 2 or more technicians working in their lab: what is your labor as a percentage of costs for dentures/partials.

So for example, if you are fabricating a full denture, what % of your costs is labor - 20%; 40%, 50%, 70% etc vs. supplies (acrylic, stone, plaster, injection items, not machinery).

Thank you!!.

 

[Jason D]

Other than teeth, material should be under 10% and labor around 30%.
If your COGS in removable is over 50% you are doing something wrong

 

[evanosu]

So 70% profit margin, that's pretty good before other expenses. I'm trying to balance productivity with quality, a never-ending battle!

 

[Jason D]

No, around 50-60% gross margins, which will net to 20% or so depending on your product mix, manufacturing volume, benefits, and price point.