01 Sep Discounted Dentistry Compared to Retail Discounts
According to Michelle Rubio from Entrepreneur magazine the business model for discounts in small retail businesses is a positive approach. The following are her reasons discounts work for small businesses.
- Increased Sales Increased traffic usually comes with increased sales. Drawing customers inside your store and influencing them to buy is not only confined to items on sale but also to regular-priced items. Shoppers are likely to walk around your store and see other items that may not be discounted but are willing to buy those because they have already saved on other items on sale.
- Sales Targets Are Met Most businesses have weekly, monthly, quarterly, and yearly sales targets. Given the seasonal fluctuations in consumer buying behavior, you can curb lean seasons by offering discounts. This way, you can meet your goals within every period regardless of your forecasts show.
- Stronger Client Relationships Giving your customers great value for good quality products can greatly improve their loyalty to your store. This is especially true for first time buyers who were influenced to try your products because of your sale offer. Once consumers have tested your products, this can lead to repeat business and also generate positive word of mouth.
- Monetized Inventory Discounting items allows you to dispose of old inventory and even items that you don’t plan on selling anymore. Place these items in front of your store to make them more visible to your customers and offer them at a bigger discount. Providing a short term incentive to your customers will not hurt your bottom line. In fact, these occasional discounts can help strengthen your customer loyalty and widen your market.
As long as you offer high quality products and provide great customer service, you can be assured that your business will go a long way.
Dental care is different
If you are a practice that accepts a large amount of insurance plans you are doing discount dentistry by virtue of the promise of more patients.
Many dentists surveyed show the prevalence of several types of discounts offered such as cash discount, senior discount, professional discount, employee discount and more.
Discounted dentistry is with the assumption that your fees are usual and customary for the area and you have a substantial profit margin. Most dentists do not fit this category. Profit margin is something most dentists don’t know. To give discounts like you were a department store is not centered in good sense. Patients don’t come in and browse your services, you don’t have sales quotas, nor do you have old inventory to dispose of and most importantly there are no “seasons” for items that you want to move out.
Many dentists feel they should offer a discount because patients expect it. I disagree. Unless you want to think of yourself as a store versus a healthcare facility. If the services and products are priced fairly and the practice offers great patient care with a kind, professional staff why would you want to risk your ability to stay in business by offering discounts?