Processing and Handling Fees

[Laura]

So I'm in the process of purchasing a lab I've worked at for 6 years. My uncle owned it, passed away , and now my aunt technically owns it but doesn't want anything to do with it. So I've been running it for the better part of 8-9 months. I am not a tech in any way, I can design crowns on Exocad and that is about it. I have two bachelors degrees in business and computer science. The lab is strictly removeable, making the one thing I can actually do a non factor. I do everything except actually make things, if that makes sense. Supplies, phone calls, manage deliveries, input cases to the computer, the billing, the payroll. We have 5 techs and 4 drivers. The cost of everything, stone, monomer, acrylic, wire, valplast, delivery has gone up significantly. I do not want to raise my prices in this time of turmoil in the lab with the owner (who had many loyal docs) but I need to do SOMETHING. I was thinking about a processing and handling fee of $10 on every case no matter what. Do any other labs do this? Would this edge me out of competition?

Thank you for your help!

 

[Contraluz]

Sorry to hear of your loss!

As far as processing and handling fees go, I have not seen this applied in a dental lab. Personally, I don't like this type of fees. Concentrate on service and make sure the work flow is not interrupted, too much. Most of your clients understand what you are going through, but they also have a business to run and, if you are not reliable, they will seek other opportunities. If you increase your fees, make sure it is justified. If you charge more for less quality and lack of service, you will loose your clients. Even the most loyal ones.

 

[zero_zero]

Why exactly do you need four drivers?

 

[CatamountRob]

If you add a new fee, it’s a price increase no matter what you call it. You have to be able to turn a profit or you might as well stay in bed in the morning, so if you can’t trim costs, raise prices and whatever happens, happens.

 

[Doris A]

They know supply prices have gone up, because their practice supplies have gone up too.

So sorry for your loss.

 

[Laura]

Sorry to hear of your loss!

As far as processing and handling fees go, I have not seen this applied in a dental lab. Personally, I don't like this type of fees. Concentrate on service and make sure the work flow is not interrupted, too much. Most of your clients understand what you are going through, but they also have a business to run and, if you are not reliable, they will seek other opportunities. If you increase your fees, make sure it is justified. If you charge more for less quality and lack of service, you will loose your clients. Even the most loyal ones.

Thanks for your response! We currently and have never charged a "delivery" fee. I mean we have to do something because we lost our work horse and if I don't implement something to make up for the loss in a head tech and I'm paying my other techs more (longer hours cause more work for them) and although my uncle did not take a salary, my aunt did although she never actually worked and we are still paying that.

Why exactly do you need four drivers?

All part time, independent contractors and we deliver for another local orthodontic lab also. We don't ship anything. Four people, but at most a day we have 3.