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Jason,I am not not sure how did you arrive to that number ? The subject line was “What is the cost to open C/B lab” .
What you can buy with $50k ? That budget not even enough to buy full supplies and tools to operate C/B lab and I don’t want to even mention about equipment .
My bego induction casting machine alone cost $30k and I don’t want to list the rest of my equipment.
Installing a sink alone in commercial and professional building cost 6k .
This is all inclusve sale with accounts. I have books that worth $500
From your previous posts I see your calculations based on $100 per crown. I charge $220-250 average .
Try to find accounts like that and see how much you spent on marketing untill you got one account willing to pay you that fee.
And what does the cutthroat region really means , I don’t get it ? Or region in general ?
C/B lab is type of business that can provide service in any region. Who can stop me to work with the dentist in Washington DC ?
What is wrong with my region ? All my accounts are based on LA.
I have about 8 dental offices in the same bulding that I never even attempt to contract.
I’m not trying to offend you, it’s simply the way business acquisition is valued.
The region is incredibly dense with low cost, heavy marketing labs.
A small lab cannot sell the “book of accounts” with much success because they are usually tied to a relationship with the owner or a key employee - if that person goes the customers go too. Therefore an acquirer will not count on that revenue continuing if they are smart.
Labs generally sell for 3x-4x ebidta but that number gets skewed dramatically if you go to either end of the curve in size. A smaller lab gets a smaller multiplier because the value is all tied to one or two employees. Bigger discount labs also get smaller multipliers because of narrower margins.
Best way to get bigger multipliers is with systems (training, managerial, financial) that can be turnkey for a buyer. Or to have intellectual property to boost the value, like a patented process or material.
Another multiplier opportunity is branding, be it print, digital or word of mouth...if your lab is the primary lab at a series of study clubs or has exclusivity with a dental society for example as a presenter, educator or even sponsor that might raise your value. As will being “known” in your area....if a dentist asks on Facebook “hey anyone know a good lab for x product?” And 3 or 4 people name your lab at the top of the list then the reputation has a branded value.
Your question about working with a dentist in DC is a little backwards- why would a dentist who never met you from 3,000 miles away want to send you work as opposed to the 5,000 labs that are closer or the 3000 that are cheaper, or the 1000 that are higher end, or the ones he sees in the magazines or at his study club etc etc there needs to be a differentiator there, something you can demonstrate that sets you apart to raise the value...you might have those things, I don’t know because all I know about Your lab is the photos.
The 50k number I threw out was a rough guess at what it would cost to get the equipment in your pictures TODAY - it doesn’t matter what you paid for it New, used lab equipment goes for 15-25 cents on the dollar if it is functional and current, but You might have a hard time convincing a buyer that centurions and lava equipment is current. The benches certainly add to the equipment value.
Again, I am not criticizing, I’m just trying to help you see the situation from another angle so you can look for those things that will help set your lab apart as a good value for a buyer.
The challenge you face in selling your organization is difficult, I sympathize. I know a lot of technicians in the same position… It’s not big enough to sell for the money they deserve after having built and maintained it.