Trust your Gut: How to Correctly Price & Differentiate your Services?
There is no formula in pricing a service. It isn’t as simple as pricing a product where you can compute the cost of the materials and production, the staff, and everything else needed to manufacture that specific product to get a proper price. This is both good and bad for dental services. It does provide you a great deal of flexibility when it comes to your services and price. However, it also makes it difficult to set. This is especially true for those who are uncomfortable with dealing with the numbers.
Getting the right price for your services is very important. Price too high and your patients may not come back. Price too low and it may not cover enough of your costs and you end up closing your clinic. Take time to give thought and proper analysis on how you should price for your service.
Fortunately, there are some underlying pricing guidelines that you can use to get a good idea of what price you should use for your dental services.
Dental Services Pricing Factors
Pricing your service is a bit more subjective as compared to pricing a product. It is both an art and a science. With that, here are some of the factors you can consider in pricing your service right.
The Cost Plus the Pricing
One of the most standard methods of pricing for any service is to use the overall cost. So the first thing you have to do is to determine the cost of providing a service then you add an amount on top of that to get the right price.
It is important to remember to factor in everything to get the right cost of your dental care services. This includes direct costs such as the medicine you use for the service, machine costs, etc. You also need to add up the indirect costs such as your rent or utilities. And of course, you also need to take into account the fixed costs such as taxes, insurance, and salaries.
When providing a service, you need to cover all these costs so that you can maintain your clinic and even improve your equipment in the long run.
Pricing from Competitors
Chances are, you are not the only dental clinic in your city or area. You need to know and be aware of what they are charging for similar dental services. Of course, your circumstances might be different such as rate of your rent as compared to theirs and other costs. But this at least gives you an idea of what is acceptable in the industry since it is already out there, and patients are already willing to pay for it.
Most services would have their prices in public domains such as their marketing materials or their website. Visit thee so that you can find out about their pricing which you can use to establish yours.
Patient’s Perception of your Dental Service
As mentioned earlier, pricing of services can be very subjective, and this is one of the main reasons why. A product’s value is easy to compute by using standard formulas and knowing the cost. It is completely different with your dental services. Patients would have a perceived value of your service based on your expertise, background, and work done. This is where your pricing becomes an artform and this is when you should trust your gut instincts. You know what you went through in order to be a dentist and no one knows better about your capabilities than you.
Use these factors to help you determine your proper price.
Setting your Price
All three factors mentioned contribute greatly to how you will price your dental services. Once you know your cost, you have a minimum buffer of what you need to get for a particular service. Use your competitor’s pricing to get more information on what people are already willing to pay and you get a price range. Determine and set your actual price based on what your patients perceive your service’s value is.
If you are still unsure about how to setup your price, then why don’t you ask for help? At 360 Dental Marketing, we have years of experience when it comes to helping dental clinics achieve their full potential. We can help you set the right price for your dental services and more. If you want to know how exactly we can help you, we are offering a free 30minute consultation so we can get to know each other a bit more. Click here to book your consultation today.