As dental practice owners or associates we all do a little quick math in our heads. If we produce $3,000 we expect to net about $900. I know that the numbers vary from practice to practice but typically 30% of production is what most dentists accept as normal.
What if we had a second business that netted 80% of revenue? That is the beauty of owning an in office dental assisting school.
Remember, overhead is particularly low because this business is piggybacking off of your existing dental office. There is no need to pay additional rent, pay for a build out, recruit new staff, pay for a new phone system etc. Once you open your school, you have just turned your office down time into a brand new asset!
Check out this math:
Let’s say, just for round numbers, that you get 10 students for one 13 week session. Let’s also assume that you charge $2,700 for tuition. School tuitions for our licensees range from $2,495- $4,795. Keep in mind that competing national chains charge tuition fees which range from $12,000-$19,000 for a 12-19 MONTH session. Are you starting to see why our schools fill up so fast?!
$2,700 X 10 = $27,000
Let’s say conservatively that your school’s overhead is 20%. (My school’s overhead is 18%.)
$27,000 X 20% = $5,400
$27,000 – $5,400 = $21,600 per session!!
Let’s take it even one step further and determine how much dentistry you’d have to produce to make that type of profit. (I’m going to have to do some Algebra here so don’t tune me out!) Remember, the average dentist takes home about 30% of the dentistry that he or she produces. X = Production in dollars needed to net $21,600. So…
30% X = $21,600
X= $21,600 / 30%
Wow! Multiply that by four sessions per year and that equals $288,000 of dentistry that you’d have to produce to net what your turn key school could generate without doing a single extra dental procedure!
If you’d like to schedule your no obligation strategy session with me, please email me at email@example.com . Look forward to hearing from you!
All the Best,
Mark Costes, DDS
P.S. Financing is now available with Sunset Financial Group, LLC. For particulars, contact Jeremy Roush at (310) 636-1133, ext. 102, direct line (424) 625-8202 or email: Jeremy@sunsetfg.com