{"id":14970,"date":"2021-06-19T19:53:35","date_gmt":"2021-06-19T23:53:35","guid":{"rendered":"https:\/\/www.edentalpracticefinancing.com\/blog\/dental-practice-term-loans-call-904-551-6090-hds-more-profitable-dental-practice-part-3-of-5-costing-in-dentistry-vs-gpm-gross-profit-margin\/"},"modified":"2021-06-19T19:53:35","modified_gmt":"2021-06-19T23:53:35","slug":"dental-practice-term-loans-call-904-551-6090-hds-more-profitable-dental-practice-part-3-of-5-costing-in-dentistry-vs-gpm-gross-profit-margin","status":"publish","type":"post","link":"https:\/\/www.edentalpracticefinancing.com\/blog\/dental-practice-term-loans-call-904-551-6090-hds-more-profitable-dental-practice-part-3-of-5-costing-in-dentistry-vs-gpm-gross-profit-margin\/","title":{"rendered":"Dental Practice Term Loans &#8211; Call 904-551-6090:  HDS- More Profitable Dental Practice- Part 3 of 5- Costing in Dentistry vs GPM- Gross Profit Margin?"},"content":{"rendered":"<p><a href='' target='_blank' rel=\"noopener\">  <\/a><iframe loading=\"lazy\" width=\"580\" height=\"385\" src=\"https:\/\/www.youtube.com\/embed\/K1_0mM6DM3w\" frameborder=\"0\" allowfullscreen><\/iframe><br \/>\n<br \/>@Dr Bhavdeep Ahuja<br \/>\nBefore the Costs in Dentistry, we need to understand about the GPM \u2013 Gross Profit Margin.<br \/>\nThe profit margin of the dental practice you are considering should be at least 60% (not GPM but PM).<br \/>\nA 60% profit margin (or 40% overhead) is close to the average (ideal) profitability of dental practices.<br \/>\nIf your practice is below that number, it could be a sign the practice isn\u2019t as well run as it should be.<br \/>\nConsidering your prime (direct) costs enables you to lower your fees to remain competitive or raise them to recoup profit that you have been leaving on the table.<br \/>\nGross profit margin is an underutilized tool in managing profitability and colleagues hardly know about it.<br \/>\nBut if they learn deeply about it, gross profit margin can easily be helpful for setting clinic charges for basic and simple procedures but complex ones as well.<br \/>\nBecause of this ignorance, colleagues for complex restorative and implant cases, just take an estimate of the lab fee and multiply it by a certain factor to determine a fee for the case.<br \/>\nThat calculation does not take into account the direct labour or materials, so it is not an accurate measure of profitability.<br \/>\nA better approach to setting fees is to consider the average fee for a service in your area and weigh that against your own gross profit margins.<br \/>\nA dental clinic down the block might be charging more for a given service, but that doesn\u2019t mean it is more profitable.<br \/>\nAlthough a dental practice can be incredibly successful, there is no denying that it costs a lot of money to run.<br \/>\nIf you are not careful about managing your finances, you could actually find your practice losing money, no matter how good your clinical skills and how long your patient list might be.<br \/>\nThough it can be challenging, reducing overhead by just 10% can make a huge difference in your practice\u2019s profitability.<br \/>\nTo learn more &#8211; See this wonderful presentation.<br \/>\n\t\t\t\t\t\t\t\t\t<br \/><a href=\"https:\/\/www.youtube.com\/watch?v=K1_0mM6DM3w\">source<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>@Dr Bhavdeep Ahuja Before the Costs in Dentistry, we need to understand about the GPM \u2013 Gross Profit Margin. The profit margin of the dental practice you are considering should be at least 60% (not GPM but PM). A 60% profit margin (or 40% overhead) is close to the average (ideal) profitability of dental practices. [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[35],"tags":[],"class_list":["post-14970","post","type-post","status-publish","format-standard","hentry","category-get-financing-dental-practice"],"_links":{"self":[{"href":"https:\/\/www.edentalpracticefinancing.com\/blog\/wp-json\/wp\/v2\/posts\/14970","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.edentalpracticefinancing.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.edentalpracticefinancing.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.edentalpracticefinancing.com\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.edentalpracticefinancing.com\/blog\/wp-json\/wp\/v2\/comments?post=14970"}],"version-history":[{"count":0,"href":"https:\/\/www.edentalpracticefinancing.com\/blog\/wp-json\/wp\/v2\/posts\/14970\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.edentalpracticefinancing.com\/blog\/wp-json\/wp\/v2\/media?parent=14970"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.edentalpracticefinancing.com\/blog\/wp-json\/wp\/v2\/categories?post=14970"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.edentalpracticefinancing.com\/blog\/wp-json\/wp\/v2\/tags?post=14970"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}