To discount or not to discount.....that is my question

S

Stella02

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#1
Hi all,
Have a small removables lab, started up beginning of July from my home. Been going very well (a little better than I expected starting out),but I still need more dentists. I've done my fair share of driving around, sending emails, trying to get as much face to face time as I can. But my question(s) is what do you do when you hit a soliciting slump? Also offices I have previously visited is it crazy to offer their first case a certain % off to try and really entice them to try me out?


-no bashing please, just asking a question
Thanks
 
CoolHandLuke

CoolHandLuke

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#2
take a lyric from one of my favourite bands Run the Jewels.

"I don't work for free and I am barely giving a f*** away"

so if you discount someone, you gotta make that bottom line back by increasing something else or cutting from your manufacturing costs. so first negotiate with Schein for cheaper acrylic when you buy in bulk, and pass the savings on as a discount.
 
sidesh0wb0b

sidesh0wb0b

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#3
if its deciding between staying in business or not...sure you can do targeted discounts. make a plan and strategy for it though. if you business model can support the work AND you can remain profitable and grow then offering "special" pricing can help you stay in business. keep in mind, we are running businesses. yes, we make teeth but as business owners our focus needs to be on business as well as the products and services we offer.
and for the love of god people, dont buy crap from schein
 
RDA

RDA

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#4
Hi all,
Have a small removables lab, started up beginning of July from my home. Been going very well (a little better than I expected starting out),but I still need more dentists. I've done my fair share of driving around, sending emails, trying to get as much face to face time as I can. But my question(s) is what do you do when you hit a soliciting slump? Also offices I have previously visited is it crazy to offer their first case a certain % off to try and really entice them to try me out?


-no bashing please, just asking a question
Thanks
I have had a crown and bridge lab for over thirty-two years, and I think that the one question that I hear most, is "Do you know any good removable labs"? I suggest that you go around to the crown and bridge labs in your area and introduce yourself.
 
JMN

JMN

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#5
Hi all,
Have a small removables lab, started up beginning of July from my home. Been going very well (a little better than I expected starting out),but I still need more dentists. I've done my fair share of driving around, sending emails, trying to get as much face to face time as I can. But my question(s) is what do you do when you hit a soliciting slump? Also offices I have previously visited is it crazy to offer their first case a certain % off to try and really entice them to try me out?


-no bashing please, just asking a question
Thanks
Well, you've got to make a new price list for the new year. Always, always, raise prices every year. Your suppliers are, UPS and FedEx getting the stuff to you are, the Drs sure are.
So instead of actually 'giving a discount', when you go marketing give them the price list for next year and 'for a limited time' they can stay on the actually active price list instead of the one that you will be activating soon.
 
Jason D

Jason D

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#6
Asking whether to discount is arbitrary...
What is a discount? You could double your fees and offer a 50% discount and it’s meaningless.

A more important decision is to decide your value proposition: what is it that you offer that others do not at to your price point?

the question about discounts is a function of whether or not you are appealing to a market segment - if you’re pricing is incorrect you will not appeal. However, if you are not offering what that market needs price is not the barrier you need to overcome.

You need to offer a solution to a problem. A discount is only a solution to the problem “your prices are too high”.

Having said that, market segmentation often encourages discounting for specific criteria.

My clients pay anywhere from “full coach fare” to a 38% discount based upon specific criteria that are the same for all. It’s not voodoo or a secret, we share the full pricing model with clients so that they can choose the criteria that fit their needs.

HOWEVER!!! I only do this because we want a large cross section of the market. If I was a small 1-15 person lab I would have one price and only one price, based upon my costs and desired profitability.

TLDR: decide what your market position is, determine your costs and charge appropriately, discount are just gimmicks in a small lab.
 
K

kmart

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#7
I am a small crown and bridge lab but I have always offered a 15% discount for the first month of service. After the first month they pay the regular fee. I have been very lucky as to all the accounts that I have that I’ve offered this to they haven’t sent me work for one month then never to be heard of again! It may not be the best business idea but the way I see it giving them a reasonable discount for awhile let’s them see your consistency and reliability. Plus you will still be making money on the first month and a huge potential to make much more.
 
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