Two ways to increase your turnover
An email landed in my inbox recently promising that you could earn up to $150,000 more per year. Whether that was net or gross the email didn't say.
That led on to this week's article. While I'm not in any way casting doubt on the email mentioned above, here's the low down on how to increase your turnover.
You annual turnover is the product of hours worked and average turnover per hour. If, last year you worked 2,000 hours and averaged $400 per hour then your annual turnover will be $800,000. Simple mathematics.
Therefore, if you want to increase your turnover you can either work more hours (not necessarily a good thing) or increase your hourly turnover.
Increasing your hourly turnover can be done in three ways:
Getting rid of dead time out of your schedule – failed appointments and gaps.
Working more efficiently.
Getting rid of low value services out of your schedule and replacing them with high value added services.
Often when dentists learn new skills – orthodontics or implants for example – they find their turnover is static or even goes down. This is because they displace services out of their schedule that they are efficient at and replace them with services that they're learning.
Unless you do a truckload of implants or orthodontics you will never be that efficient. Just one or two cases a week will not get you there. You'd actually be better sticking to bread-and-butter dentistry such as crowns or fillings.
So next time you see an ad for a new procedure that promises to boost your turnover ask yourself two things.
Firstly, are you prepared to go all in on this new skill and become really good at it? Secondly, which lower value services are you going to get rid of to accommodate the new service?