It’s a common scenario in dentistry: two practice owners, each turning over £600,000 a year, but one takes home nearly double the profit of the other. On paper, they look the same — same turnover, similar patient numbers, similar treatment mix. So, what’s causing the difference?
The answer lies in how they run the business behind the scenes.
High-performing practices keep a tight grip on fixed costs — rent, rates, utilities, and staffing. Even a small percentage difference in payroll costs or an unnecessarily expensive lab supplier can eat away at profits.
Example: One practice spends 29% of turnover on staff wages; another spends 33%. That 4% gap is £24,000 a year straight off the bottom line.
It’s a common scenario in dentistry: two practice owners, each turning over £600,000 a year, but one takes home nearly double the profit of the other. On paper, they look the same — same turnover, similar patient numbers, similar treatment mix. So, what’s causing the difference?
The answer lies in how they run the business behind the scenes.
Many practices undercharge for treatments, especially private work, because they’ve never reviewed their fee schedule against current market rates. The more profitable practices regularly review pricing, making sure fees reflect both skill and market value.
Even offering tiered pricing for the same treatment groups can give patients more options and help practices improve their margins.
The treatment mix matters. A practice that delivers more high-value treatments (implants, aligners, cosmetic work) will generate more profit per hour than one doing mostly low-value, high-volume NHS Band 1 work — even if total turnover is the same. The overheads are roughly the same but the increase in revenue per hour will often trickle down to the bottom line.
Profitable practices run like clockwork. Appointment books are optimised, chair time is maximised, and cancellations are kept to a minimum. Inefficiency isn’t just wasted time — it’s wasted revenue.
The key factor in efficiency is driven by staff. Highly trained and motivated staff – that have worked together for a long time – means everyone plays their part and the collective effort can be greater than the sum of the individual parts.
Perhaps the biggest difference-maker: knowing the numbers. The most profitable practice owners track key financial metrics monthly, not just at year-end. They spot trends early and take action before small problems turn into big ones.
They also ensure their teams are aware of and bought into the KPIs. Running a dental practice is not just a numbers game – it is a team sport.
Two practices with the same turnover can have wildly different outcomes because profit isn’t about how much you make — it’s about how much you keep. The owners who understand and actively manage their costs, pricing, service mix, and operational efficiency consistently come out ahead.
They also ensure their teams are aware of and bought into the KPIs. Running a dental practice is not just a numbers game – it is a team sport.
Action Step:
Pick one of the five areas above and review it this week. Even small improvements can have a major impact on your bottom line over time.
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