Losing money

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Denture Dude

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First, I want to say, I realize I ask more questions than I answer here. This is for two reasons. One, I take this place seriously and as such made the decision a while ago that if I don't think I have something valuable to add its prob best I zip it. And two, I notice that every year that passes I find I have to ration my time very wisely. I do still try to pipe up if I have something I feel is worth saying.

With that said Ive got another question for yall. This question is for anyone who wants to answer but particularly those that run small removables labs. Is it common, due to the nature of this business, to have months where you'll operate at a loss? Do you focus on the month to month? Quarter to quarter? Ive got to wrap my head around thing so I can decide whether to move forward in this business or get out. Im willing to endure some pain to keep my future in lab work going. But sometimes I wonder though if I should pour my energy elsewhere. Understanding what strategies have worked, tried and true, to build a small lab business from the ground up and keep it running, I think, will help me start making some tough decisions.

Sorry for the convoluted post, its what I do
thanks all- you've been much help to me over the years
 
sidesh0wb0b

sidesh0wb0b

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First, I want to say, I realize I ask more questions than I answer here. This is for two reasons. One, I take this place seriously and as such made the decision a while ago that if I don't think I have something valuable to add its prob best I zip it. And two, I notice that every year that passes I find I have to ration my time very wisely. I do still try to pipe up if I have something I feel is worth saying.

With that said Ive got another question for yall. This question is for anyone who wants to answer but particularly those that run small removables labs. Is it common, due to the nature of this business, to have months where you'll operate at a loss? Do you focus on the month to month? Quarter to quarter? Ive got to wrap my head around thing so I can decide whether to move forward in this business or get out. Im willing to endure some pain to keep my future in lab work going. But sometimes I wonder though if I should pour my energy elsewhere. Understanding what strategies have worked, tried and true, to build a small lab business from the ground up and keep it running, I think, will help me start making some tough decisions.

Sorry for the convoluted post, its what I do
thanks all- you've been much help to me over the years
ask questions! thats how we learn.

im not sure about the removable only side of things, but from what i can gather....fluctuations happen. bolstering your months with repairs and relines should help to offset the months that might otherwise be in the red.
 
TheLabGuy

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Don't ever feel you shouldn't ask. I will say you should never take a loss after the first few months of being in business. Sure, some months you make more than others but never a loss. Also, I'm wondering what you consider a loss as well, can you be more specific? I ask because, looking back I've bought some equipment I've needed and used credit to do it but it was paid off but you could make an argument where I took a loss that month is why I bring it up.
 
Doris A

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Every lab I've ever worked in, including our own, January and February are usually the slowest months of the year. Just plan ahead for the slow times.
 
bigj1972

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If you enjoy (tolerate) removeable, you should stay in and rethink your structure. If your having losses, somethings wrong. Fees, skillz, spending.

If you hate this business, and the money is bad, close it down.


And don't take this place so seriously. Your not getting a College Credit, a CE, a CPR card, Not a beach umbrella, not a sun lounger, no beach balls.
 
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CatamountRob

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You need to look at slow months as a resource, use them to improve your skills, to go out and drum up work or simply to enjoy your life more.
Also, if I only posted when I had something valuable to offer id have like 3 posts.
 
sidesh0wb0b

sidesh0wb0b

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You need to look at slow months as a resource, use them to improve your skills, to go out and drum up work or simply to enjoy your life more.
Also, if I only posted when I had something valuable to offer id have like 3 posts.
if that :D
 
rkm rdt

rkm rdt

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You can go to a casino and lose money or you can win some, maybe even the grand prize .
Your odds are still better in this business rather than relying on fate.
Money isn't the grand prize it's just a participation award.
Time is the gold
Your time and your customer's time. That's where the opportunities await us.
 
Contraluz

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Every lab I've ever worked in, including our own, January and February are usually the slowest months of the year. Just plan ahead for the slow times.
That used to be. But over the last few years, that hasn't been true, at least for me. As a matter of fact, January and February have been as busy as November and December, if not more. But you are right, there used to be patterns. But in my experience, that isn't true anymore.
 
Affinity

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If I had a dollar for everytime I just hear the name 'chromeworks' .. well Id have a few extra dollars, but the point being, they have cornered the market, found their niche, and Id imagine, they never have a slow month. The work is out there.

Are you noticing a pattern over many years? Is it certain months or sporadic? Finding the root of the cause with the Drs would be my priority, it never hurts to have a conversation.
 
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Denture Dude

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I should clarify. I'm not losing money, yet. Right now, I'm in house. 3 docs in the house, two docs outside the house. I do everything except bookkeeping. Docs wife does that. Im lucky in that Im trusted to set prices to where I think theyre fair for the product. Every case that leaves the lab gets invoiced. I get hourly plus half of whats leftover after all the bills, including lab rent. Doc (that owns the place) and I have discussed a situation where I just rent the lab space and run this thing on my own. I see opportunity for expansion, but Im not doing that for half the profit and also being micro managed would throw a wrench in everything. On the one hand I see an opportunity here and really want to grab it by the nads. Im just a little insecure on how to map it out and make it happen. If I took on more work, Id definitely need to hire some help. Honestly my question was a more broad question on how to do the math and what to plan for. Maybe Im just fishing for encouragement. Theres really no other job Id rather be doing. But money is money and Im 43 and have a 4 yr old daughter to support.
 
KingGhidorah

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It’s a common misconception that raising your prices will result in losing clients. You might have a small percentage lost but anyone you lose you can make up for in advertising for new clients. With how much inflation has caused prices to go up on everything, all dental labs should be having a MAJOR increase in how much they charge. Why should we take the hit for inflation? Charge more. Make the dentist charge more. Then make the patient pay the cost of inflation.
 
Affinity

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Plan on having a waiting list of high paying clients and work back from there. I asked if you had charted out the dips in production because that is common. Many businesses where Im at are seasonal, either winter or summer, and it balances out to where some people that work hard for 6 months in summer, can ski all winter and still have an income.
 
Doris A

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That used to be. But over the last few years, that hasn't been true, at least for me. As a matter of fact, January and February have been as busy as November and December, if not more. But you are right, there used to be patterns. But in my experience, that isn't true anymore.
That's true in C&B labs. In removable we still see some slowdown after the first of the year. Having said that, this January was on of our best ever.
 
mightymouse

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We too are also a removable lab. I third January and February being on or slightly above average billing. Furthermore November we count on billing good because of Christmas bonus, gifts to doctors and short month for vacation in December. Not only did November perform above average but December, which is always tends to be a low billing month, performed on pace with November. Times are definitely changing. COVID altered the traditional cycle (slow, average, above average) of when patients are getting treatments.
 
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tlambing

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I have just retired after 22 yrs owning/running my own removables lab. Yes, there were some months slower than others, but I can say that not a single month did I not turn a profit. I have known however, many other small labs that have struggled and sold or closed over the years. In my opinion being a great technician and a great business mind do not always go hand in hand. By your questioning post it sounds like you’re aware and care enough to be great at both! A few things that helped me over the years…
1. Raising my prices a bit every year (as costs of goods rise),I never had a client leave over price.
2. Charging more for expedited services
3. Finding a niche that serves the majority of your clients (For me this was flexibles)
4. Offer the help your clients be successful! bending over backward sometimes to help every step of the way, will endear your clients to you, referrals will follow

In your situation I also think, open transparent accounting, since your income is based on a profit that you are not in charge of calculating.
 
Flipperlady

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There's some good advice in here. I'll say that the busiest months I had working in house for dentists was end of year before the insurance ran out for the year. January and February slowed down before it picked back up in the spring and then back down towards the end of summer. End of September to just after the end of the year was defiantly the busy time working in house.
As a business owner it depends, I would get a run of full/immediate dentures end of year or spring, but when you work for several dentists and you specialize in just removables, I would start with making a chart of the types of work coming in and when, also making note of price per unit etc... After a year or two you will have some hard business decisions to make as you'll find not only can you be not be everything for everyone, you'll find you will need to fire dentists and cut services you took for granted in house that aren't profitable as a business owner. I would start charting everything.
 
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Denture Dude

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Don't ever feel you shouldn't ask. I will say you should never take a loss after the first few months of being in business. Sure, some months you make more than others but never a loss. Also, I'm wondering what you consider a loss as well, can you be more specific? I ask because, looking back I've bought some equipment I've needed and used credit to do it but it was paid off but you could make an argument where I took a loss that month is why I bring it up.
That’s a good point. Losing money can come in different ways. I honestly don’t even understand how to calculate roi on equipment.
 

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