A few dental practices have supply costs high enough to rival other practices. But at the end of the day, you still need to make a profit to stay in business. Here are a few smart tips to keep your supply costs from taking much of your capital and affecting your bottom line.
Set a budget
At the start of every year, check how much you spent on supplies for the previous months. If the cost of your ortho appliances was five percent of your budget, aim to reduce it to four percent this year. Your average monthly production can serve as a pointer as to how much you can comfortably spend on supplies.
Inquire about free items from manufacturers or dental labs
Your manufacturers or suppliers offer freebies every now and then, so why not ask your sales representatives to help you get them? Whenever you’re buying supplies, ask what free goods are available, and take advantage of any offers. These small savings add up.
Don’t order what you don’t need
If you’re budgeting on a monthly basis, order what you need for the month. Having too much inventory that you are not using is making money sit around idle. Start by going through what you have and find out what you need to order. Hold off ordering what you don’t need for the month.
Consider cheaper alternatives
Take a keen look at the items you frequently order. Find out from your supplier if there are other cheaper alternatives that would serve the same purpose without compromising quality. Even if you are saving dollars on a particular product, you’ll be surprised to discover the difference in your bottom line at the end of the year.
While dental supplies are central in running your practice successfully, they need not stifle your profits. By making smart decisions about how you spend on them, you can boost your profits year-on-year.