Thoughts on overseas outsourcing?

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9milli

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1500 a month? Is this Dr Dandy?
No, we are not in the US … we are just having some issues with staffing vacancies locally since the pandemic started, and had the idea recently to try to outsource some of the digital work . When I searched the web, this thread came up so I thought I’d start with asking people who’ve already been there and done that 🙂
 
bigj1972

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Our Drs try to shop our prices against offshore milling centers. Three sides of the dental triangle…price-time-quality…never the 3 shall meet.
Guys....my mechanic bills $140/hr. Driveway Cleaner $125. Gutter Cleaner $175. Yard Man $100

If your not turning these numbers, its time to get out and give them what they deserve....Nothing
 
Affinity

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mechanic > dental tech .. gutter cleaner also.
 
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Race

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I have experience outsourcing overseas in the past and I am happy to talk with you. What most people are unwilling to admit is that crowns are commodities and like every commodity, they are eventually mass-produced elsewhere. It has been reported that today over 50% of every crown placed in the US is outsourced in one way or another. That proves that Doctors DO care about price and those smart enough to run their practice like a business will seek the most competitive pricing available. We all know that doctors will change labs at the same rate as they do underwear and it's only a matter of time until the max price a doctor will be willing to pay for a very good high-quality crown is under $50 then $40 and then $30 and eventually, no US lab will be able to compete and make any money. It's not emotional, patriotism, loyalty, the quality of the material, or the craftsmanship of the product..... it's math! 90% of the cost of a crown is labor. You can specify the exact same materials used anywhere in the US and then, the only difference is the cost of the person doing the work. This is the same reason that the vast majority of electronics, automobiles in fact everything you can see or touch in the room you're in right now is made elsewhere.
 
bigj1972

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I have experience outsourcing overseas in the past and I am happy to talk with you. What most people are unwilling to admit is that crowns are commodities and like every commodity, they are eventually mass-produced elsewhere. It has been reported that today over 50% of every crown placed in the US is outsourced in one way or another. That proves that Doctors DO care about price and those smart enough to run their practice like a business will seek the most competitive pricing available. We all know that doctors will change labs at the same rate as they do underwear and it's only a matter of time until the max price a doctor will be willing to pay for a very good high-quality crown is under $50 then $40 and then $30 and eventually, no US lab will be able to compete and make any money. It's not emotional, patriotism, loyalty, the quality of the material, or the craftsmanship of the product..... it's math! 90% of the cost of a crown is labor. You can specify the exact same materials used anywhere in the US and then, the only difference is the cost of the person doing the work. This is the same reason that the vast majority of electronics, automobiles in fact everything you can see or touch in the room you're in right now is made elsewhere.
Like i said.... Let them call Vietnam for answers. Don't compete, do something else. In 5 years you'll be glad you did.
 
bigj1972

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This is the time you have to stand your ground. There is no more "some money is better than no money". You act weak, you'll be treated weak. There hasn't been a better time than now to grow your business or start a new one.

You let cheap asses control your prices, what kind of business have you really got.
 
npdynamite

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I have experience outsourcing overseas in the past and I am happy to talk with you. What most people are unwilling to admit is that crowns are commodities and like every commodity, they are eventually mass-produced elsewhere. It has been reported that today over 50% of every crown placed in the US is outsourced in one way or another. That proves that Doctors DO care about price and those smart enough to run their practice like a business will seek the most competitive pricing available. We all know that doctors will change labs at the same rate as they do underwear and it's only a matter of time until the max price a doctor will be willing to pay for a very good high-quality crown is under $50 then $40 and then $30 and eventually, no US lab will be able to compete and make any money. It's not emotional, patriotism, loyalty, the quality of the material, or the craftsmanship of the product..... it's math! 90% of the cost of a crown is labor. You can specify the exact same materials used anywhere in the US and then, the only difference is the cost of the person doing the work. This is the same reason that the vast majority of electronics, automobiles in fact everything you can see or touch in the room you're in right now is made elsewhere.
Those are the Dr.'s you don't want to go to. Crowns are custom, the labour is the difference between quality and garbage. US labs will always be able to compete, it's only the labs that throw quality out the window trying to compete with the unreasonably low prices that won't be able to compete
 
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Jason Liao

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As a guy who had been working for D*G/D*S in China, and N*X in Vietnam,

Maybe i can give some advice.

a,preparation, Both you and your partner need FDA reg number for custom clearance.

It's not complicated for a US lab to register FDA, in 2020 FDA charge 5236 USD for annual fee, and would increase a little bit in every year. You should concern this in spending.


b, the turn around time normally would be 7-10 days (shipping by UPS/FEDEX),

2 days transport from US to Asia , 3~4 days productive time,1 day transport from Asia to US, and 1 day preparing shipment and invoice to clinic. May need 1~2 more days if you want double check the production.
For international trading i suggest you to use UPS, Fedex has trouble frequently in custom clearance. But for domestic transport, UPS is crappy.


c, About the transport fee,
there is no advantage to do outsourcing if you have only sevral cases in every shipment. When the quantity rise to 20 case ,the transport fee will reduce to 3~5 USD per every case. The big net lab groups could have 800~2000 cases in every parcel, and the transport cost would as low as 1 USD per case.
Usually 7-8 fixed case weight 1kg, 2-3 removable cases weight 1kg. You can make calculating by your self.

d,The general price you would receive.
15-25USD for PFM
30-40USD for full contour Zr
40-55USD for layered Zr or E-max
30-50USD for Arcylic denture
20-40USD for Co Cr framework
I suggest that don't only search for low price,
steady quality and delivery on time are more important.

It's not so easy like 2010s to do outsourcing business in the traditional way nowadays, but still could earn margins if you are good in operating.
Many outsourcing net labs start investing in mill centres, which could save turn around time, and made in USA!
Hoping This Helps
Well said
 
rkm rdt

rkm rdt

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I have experience outsourcing overseas in the past and I am happy to talk with you. What most people are unwilling to admit is that crowns are commodities and like every commodity, they are eventually mass-produced elsewhere. It has been reported that today over 50% of every crown placed in the US is outsourced in one way or another. That proves that Doctors DO care about price and those smart enough to run their practice like a business will seek the most competitive pricing available. We all know that doctors will change labs at the same rate as they do underwear and it's only a matter of time until the max price a doctor will be willing to pay for a very good high-quality crown is under $50 then $40 and then $30 and eventually, no US lab will be able to compete and make any money. It's not emotional, patriotism, loyalty, the quality of the material, or the craftsmanship of the product..... it's math! 90% of the cost of a crown is labor. You can specify the exact same materials used anywhere in the US and then, the only difference is the cost of the person doing the work. This is the same reason that the vast majority of electronics, automobiles in fact everything you can see or touch in the room you're in right now is made elsewhere.
..and sitting in a shipping container off the coast of CA.
 
Mike2

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I can design 45 crowns a day, but it's pushing it and I have done this for 35 years. That being said, I cannot even find a quality partner in the USA to send large/Tall cases i don't want to mill as I don't stock 22mm+ pucks. I sent 3 cases to a very large outsourcing partner that I have done business with for 30 years. Out of three f#@$%ng cases 2 were wrong. One didn't fit at all and the other was someone elses? Maybe the commodity thing is true but I'm on the tail end of a career and I am teaching 2 young ones as we speak, neither with any dental experience. By the way I started them at 19$ hr (northern Midwest town of 200,000 pop./ They haven't missed a day yet and they are learning scan design mill color. I need to train a couple ceramist now as the ones that i work with are all 50+ yrs
There will always be cheap, but if U look around, people will always pay more for what they perceive as better ,I.E. Starbucks,Nike, Under Armour, Red Robin etc along with the cheaper, I.E. Gas station coffee, chuck taylors, generic sweat wicking clothing(sincerely my promotion company told me this is same shirt as the one with swoosh, $$$ olny dif) and of course McDonald's. I have a prosthidontist who has a lab full of treatment plans for 20K-80K$$ and he cannot get any busier, why because people want what he sells quality fixed implant supported teeth enough said .
If you create a high quality product there will always be a buyer. I am seriously thinking of a membership only lab, as I know how THEy like exclusivity, Just saying and your welcome for the idea GOLD DUSTDealMY @ cents
 
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Ghabeli

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Hi everyone
The very important thing is all custom-made devices, medical appliances and material should be TGA approved in Australia.... the most problem with sending job to overseas is breaching low....
 
Andrew Priddy

Andrew Priddy

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I do all that $hit myself, I’m going to start billing my wife..
and if she starts billing you? oh, this could get pretty pricy on your end.. may want to rethink that
 

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