Day 14: I am a Millionaire

Welcome to Day 14.

OK, over the last couple of days I’ve talked about desk searching your industry and I promised a case study.

I worked with a dentist and our desk search showed three clear categories of dentistry: emergency, orthodontic and cosmetic.

Emergency is when you are sitting in a cinema watching a movie eating popcorn and suddenly bite into something solid and crunchy and discover a filling has fallen out or part of your tooth has broken off and sudden,y the pain is excruciating.

I was in Boston at a restaurant and bit on a lamb chop and split my tooth! It was like a bolt of electricity shot through my whole face!

I found a dentist the next day who charged me $425 to patch the tooth until I got home. The tooth lasted three weeks until I could get home but it couldn’t be saved and the extraction was $1800!

Orthodontic is braces and implants and rebuilds. Highly profitable.

Cosmetic is crowns and jaws and surgery. Very profitable.

But here’s how we increased emergency revenues for that dentist.

Bill – lets call him Bill – has over 3,500 patients on his CRM. Technically most people should have a check up twice a year but most people see their dentist about once every two,years. They argue that the dentist is too expensive to visit more regularly but the reason it’s too expensive is because they don’t see the dentist twice a year!

So we got the 17 year old receptionist to ring up past clients and invite them in for a check up. That resulted in about 10% people agreeing to a checkup at $220 over a six mont period.

Do the math. 350 x 220 = $77000. Twice a year. Now we could tweak the script but 10% is a better than average result, already.

So 10% of the clientele – 350 patients – are now book into a visit and in the dentist chair. Bill does a look-see, frowns, umms and ahhs and takes an x-ray. Next, Bill is suggesting preventative work.

So imagine this. You’re in the chair with a saliva sucker hissing away in your mouth and the dentist suggests you need some work done. Do you take the dentist’s advice? Statistically you will.

Here’s the thing. How many of the 350 people do you think agree to the dental work? The answer in this case is 94%. I could not believe it but that is Bill’s conversion rate with patients once they are the chair.

And the average proposal and acceptance (P&A) for this practice is about $995. In theory, that’s 329 people spending $995 or $327,355. And I say in theory because, making reminder calls isn’t sexy work and pretty soon the receptionist stopped calling clients and Bill stopped writing up P&As.

It’s like the whole team developed amnesia! They forgot what worked.

Bill then went back to advertising. Getting clients through advertising is a hard row to hoe for a dentist. So back I go and we revisit the two-step call and propose strategy.

See it may not be one idea but the combination of two or more ideas working together.

We got the receptionist phoning existing clients; and Bill writing up proposals; and the admin people chasing up acceptances. And the money tap turned back on. So what if Bill get that working as a system. Removed the choice and made it non-discretionary? Made it part of the job description?

So that’s what Bill did and the practice grew. But suddenly Bill has pulled money out of the business and put into a deposit on a commercial setting. Within two years that has increased in value to $1.3M.

So technically – on paper- Bill is a millionaire.

 

Your turn

Every article and book I read on being a millionaire starts with ideas that are usually staring you in the face, so today open your eyes.

 

 

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