Why copying prices is risky
Most clinics set prices by asking what others charge. But two clinics on the same street can have very different costs: rent, number of chairs, staff, the doctor’s percentage and how busy the chairs are. A price that is healthy for one can lose money for the other.
Step 1: find your cost per chair hour
Add up a normal month’s running costs: rent, staff salaries, utilities, internet, cleaning, maintenance, software and the monthly share of equipment (a 300,000 unit expected to last 10 years costs 2,500 a month).
Then work out chair hours worked: working days × hours per day × chairs. Use real hours, not opening hours.
Step 2: cost each treatment
For each treatment add:
- Materials used (composite, bond, anaesthetic, gloves, sterilisation)
- Lab fee or implant parts
- Doctor’s share (for example 40% of the price after the lab fee)
- Chair time × cost per chair hour
A worked example
A porcelain crown priced at 6,000. Lab 1,500. Materials 200. Doctor on 40% after lab. Two visits totalling 90 minutes of chair time.
| Item | Amount |
|---|---|
| Price | 6,000 |
| Lab | 1,500 |
| Doctor share: (6,000 − 1,500) × 40% | 1,800 |
| Materials | 200 |
| Chair time: 1.5 hours × 300 | 450 |
| Left for the clinic | 2,050 (34%) |
Now a root canal on a molar at 2,500, with no lab, 150 materials, doctor on 40% (1,000) and 2 hours of chair time (600). Left for the clinic: 2,500 − 1,000 − 150 − 600 = 750 (30%). Lower, but positive.
If the same root canal were priced at 1,800: 1,800 − 720 − 150 − 600 = 330. One more visit than planned and it loses money.
Step 3: choose a target margin
Decide what share of each treatment the clinic should keep after all costs, for example 25 to 35%. Any treatment below it needs a higher price, less chair time, a cheaper material or a different doctor arrangement.
Look at money per chair hour too
Two treatments can have the same margin but very different value per hour. A 30-minute treatment that leaves 600 earns 1,200 per chair hour. A 2-hour treatment that leaves 1,000 earns 500 per chair hour. When chairs are full, promote the treatments that earn the most per hour.
Raising prices safely
- Raise the treatments that are below cost first. Nobody should be treated at a loss by accident.
- Ask how many patients you could lose before a rise hurts. A 10% rise on a treatment with a 30% margin still pays off even if you lose a few patients.
- Keep check-ups and simple fillings attractive. They bring in the patients who later need larger work.
Doing it with real numbers
OdenteQ’s reports calculate this for every treatment from your real data: materials from your stock recipes, lab fees, each doctor’s share, editable chair minutes and your real running costs. Treatments below your target are flagged with a suggested price, and a calculator shows what a price change does to your month.
Questions
How do I calculate the cost of a dental treatment?
Add materials, the lab fee, the doctor’s share and the chair time multiplied by your running cost per chair hour. The price minus that total is what the clinic keeps.
What is a good profit margin for a dental treatment?
Many clinics aim to keep around a quarter to a third of the price after all costs, but it depends on your costs and goals. The key is that no treatment loses money without you knowing.
