Treatment Plan Presentation in Dentistry
Interest.Consumers purchase items every day with interest (many times with enormously high interest). More intriguingly, they do so willingly without having to be convinced. Vehicles, Furniture, Televisions, Computers, Homes and the list is never ending. Consumers do it everyday without thinking twice.
Why in Dentistry is it different? Why do treatment coordinators have such a difficult time convincing patients to go with 3rd party financing with monthly payments that have interest. Many times the "with interest" plan is the best option for the consumer (patient) because the higher the interest the lower the monthly payment making it more affordable. It is also the best option for the business (practice) as the fees charged to you are lower the higher the interest is to the consumer (patient).
The national financial conversion rate in Dentistry (this has nothing to do with treatment acceptance) has dropped to about 18%. This simply means that for every dollar presented to a patient only 18 cents is collected at the time of presentation. This defines your cash flow as cash flow is defined as money in your hands right now as opposed to over the course of time. This means the average dental practice has an 18% cash flow rate, which (and pardon me for not being politically correct) is awful.
The answer to all those above questions relates to the value (or lack thereof) consumers have for what they are purchasing. Consumers value a vehicle and if they want one bad enough many will pay whatever interest is necessary to get that vehicle. The same goes for televisions, homes and hundreds more. When a consumer values something at high levels they convince themselves they can afford it regardless of the interest that comes with it. There are exceptions of course; however, for the vast majority of the country this proves true.
The lack of perceived value consumers have for dentistry is the answer to why the vast majority of patients choose not to do 3rd party financing and/or "with interest" payment plans. There are other reasons as well that I will discuss in future articles; however, it all relates to when a consumer does not value what they are buying they will not pay interest on it (or are far less likely to).
They key is to place value in the mind of the consumer entering your business (practice). What happens when you do? Your business (practice) will experience record efficiency, profitability and growth. Further proof is the fact our clients average more than twice the national average in financial conversion. They accomplish this through training that pertains to consumer buying tendencies, behavioral patterns, what motivates them (and more) as they pertain to the biology of the brain. This training allows dental professionals to improve patient care and place value in the mind of the consumer (your patients).
Founder & CEO - BizBlitz