MEMBERSHIPS DONE RIGHT!

This week we are sharing with you a tip about membership plans in your office.

You know, there’s a lot of talk these days about membership plans, and dental savings plans.

Unfortunately, most of them are done wrong.

Done incorrectly, you actually may be losing money, or setting yourself up for failure. If you’ve ever heard of sunk cost syndrome, which is when you have a big hole, and you continue to dig and try to get out of that hole, and really just get into a deeper pit. This is a disappointing game that many practice owners get ensnared with.

DONE WRONG
If you’re trying to make your membership plan work like insurance, then let me share a secret with you.

We’ve had the best success doing it the opposite of conventional thinking. If you design it as a flat rate discount, you’re just becoming a commodity and will be compared to insurance.

“Sign up for our dental savings plan and you’ll save 20% on all fillings, wisdom teeth and crowns.” WRONG!

DONE RIGHT 

Why should you setup your plan different than flat rate discounting, or worse yet trying to mimic dental insurance? Here are 4 reasons: 

1. Your profit margin in different services you offer varies. 

2. Be selective. You don’t have 20% give on every service you offer. You get to decide what is discounted down vs. valued up.

3. The other problem with flat discounting is that starts to look, feel and sound like insurance. Then you are just trying to play a game you won’t win. Your membership patients see you for the relationship and personal value you offer, not because of deductibles and coverages.

4. Add unique value. Create more value that’s not included with insurance. Like extra exams, X-rays, free laughing gas, etc. 

Now take this information, go out, and boost the value you offer your patients, rather than discounting it down to nothing. 

In part 2, we will cover how to set fees for your membership plans.

PODCASTS UPDATE
For more growth tips for your practice and personal life, listen to our Free, recent podcasts https://yourpracticegrowth.com/podcasts/ here. Recent interviews include: Patient marketing strategies, Practice Profits, and Botox.

THIS WEEK…
…read more about practice building topics on this week’s blog post yourpracticegrowth.com/blog here.

Have a patient-profitable week!

Dr. Tyler Williams, D.D.S.

Are You “Addicted”?

As a practicing dentist, you’ve probably seen the effects of patients who have addictions to narcotics. I’ve never had any problem like that myself, but I’ve treated a few patients over the years who formerly had those problems and have shared with me how much it ruined their life, and how much work it was to turn that around for them.

So just like a muscle, you’ve got to get out of your comfort zone and be able to do things differently and work with people who will challenge your ideas and talk with you about what you are doing.

Just think – maybe there’s a better way to do this, maybe you should be thinking about working on or doing things in your practice in a different way so you don’t get stuck in the comfort zone of complacency.

When you work out, that’s when growth hormones are released. So whether it’s weighted, or running, cycling, or whatever it is, between workouts or when you rest, your body releases growth hormone, and that impacts your mind and your body allows its muscles to grow.

Now there’s a certain point that you don’t want to go beyond, which is overworking your muscles. This could tear a muscle or damage a muscle, but as long as you’re working in an environment that causes you to stretch a bit each day, and work a little bit harder each day, that’s the kind of people and business you should spend your time in.

And celebrate your accomplishments and wins!

In our upcoming Membership growth mastermind, we’ll be talking about getting off the insurance bandwagon, so you can still be insurance friendly like we are. But you’ll discover how to be insurance dependent and how to attract patients who want to see you for the value you offer, not because you’re the discount dentist or the insurance-driven dentist.

You want to have a purpose-driven practice, not an insurance-driven practice. More to come soon on this topic in our upcoming blogs, but if you’d like more information about the growth mastermind, we’d be happy to share that with you.

Until next time. Have a fantastic week!

What Are You Investing In Today?

There are many things you can invest in.

Your Practice (of course), real estate, the stock market, bitcoin, and much more!

Recently I interviewed Michael Zuber, author of One Rental at a Time.

Here is a quick excerpt from our podcast (https://yourpracticegrowth.com/podcasts).

“You know, that was about an 18-month journey from trough to peak to trough, and I realized that it wasn’t Warren buffet, even though in the middle of that, I felt like I was smarter than everybody else. So I humbly walked to a Borders bookstore in early 2000.

And I found a little purple book, and it was called Rich Dad, Poor Dad.

I read (it) 10, 11, 12 times back to back. And it changed my mindset. It introduced a concept that I am still embarrassed to say I didn’t know and that was a rental property. But it didn’t tell you how. It doesn’t tell you how to do it. It just talks about a condo in Oregon and a condo in Hawaii that Kim and Robert got at the beginning.

So I spent the next year trying to figure it out and ultimately started buying rental properties… I happen to live in the most expensive part of the world, the Bay area. And I couldn’t make it work here. So I ended up finding a market two and a half hours away in Fresno, California.

And I have been investing there ever since the book. So the book gives you more details about our beginning but tells you the 15-year journey from the first purchase. Through financial freedom, which for us was 15 years, we replaced two six-figure incomes. We started, before the crash, we got out of housing, into apartments (using) 1031 exchanges.

We were buying hand over fist in 2010… The wife exited about six years ago now, and I left about three years ago now. And you know, I have spent the last three or four years trying to help people see the power of, you know, rental properties.”

The moral of the story? You can invest in many things, but whatever you invest in, be patient and follow the process.

Then return the favor and teach others how to do it. That is why we enjoy sharing this blog with you.

Have a great week!

Personalize Your Marketing Message

Recently, my wife and I have started some home-improvement projects and have been getting a lot of bids from different companies for finishing the rest of our basement.

While we don’t mind receiving bids from companies, we must have somehow ended up on some purchased marketing lists, because we’ve received several pieces of direct mail from various painting companies in the area.

Here’s an example of one of the letters that we just received that I thought was a good example of “magnetic marketing” style direct mail, and I thought that it was perfect for this topic!

The envelope itself looked personalized, even though it was printed, and the bright yellow immediately grabbed my attention! The print looks like a personalized handwritten font, that someone actually took the time to write themselves, and they even had a real return address label like the ones that “grandma” would use for a birthday or Christmas card!

While the letter did have a call to action, the urgency of that call to action, as well as the demand that clients have of their company, could have been a lot stronger! Instead of simply stating that “many of our neighbors” have trusted this company, they could have more directly stated how many homes in the community they had painted, as well as providing a small, but specific, list of colors that are HOA approved!

They also had a pretty good list of “exclusive” deliverables, while placing some importance on the HOA in their marketing message, directly targeting people who were currently remodeling, or finishing building, their home! However, in their list of deliverables, they restate the fact they give free estimates, when it is clearly stated in bold at the top of the letter!

There was a merge tag that was used to make the letter appear to be more personalized, and it did seem to come from a real person at the company, rather than being just a generic merge tag. Unfortunately for this marketing letter, by trying to use a merge tag to make the letter more personalized, they actually made the rest of the letter seem a little generic.

When you take the time to think about your marketing message, and how others may perceive it, you will have the ability to directly influence how personalized your message will be!

From everyone here at Pinecrest Practice Growth, we hope that you will learn from this letter and personalize your marketing message, which will help your practice to continuously grow throughout the year!

OFFENSE + DEFENSE = PROFITS

The Key to a profitable financial plan is having a solid offense (your production and marketing towards the right patients) and a strong defense (reasonably reducing expenses and overhead), but finding the perfect balance between the two is what will ultimately bring you financial success in your practice!

If you solely focus on producing, although you will most assuredly provide quality services to your patients, you will do so at the expense of your profit margin. Some practices will place too much of their focus on reducing and cost-cutting, which in turn directly destroys the culture and core values of their office!

Even though no two practices are exactly alike, we have found, in our practice, (through much determination, as well as trial and error) that a 10:1 focus on producing vs reducing has been the sweet spot for our continued financial success! This has allowed us to efficiently cut costs where we can WITHOUT sacrificing the quality of our production!

I saw this stat during an NBA game recently and I thought that it related nicely to this topic! This is exactly the reason why the Utah Jazz are #1 in the league this year. They have consistently won because they have been the only team in the NBA to rank in the top 5 in both their offense AND their defense!

As you work on both your production and reductions, remember that it will take time, and a little trial and error to find a good balance between them (but don’t expect perfectionyou don’t need it to strike gold!), but ultimately you can, and will, reach financial success through that balance!

From everyone here at Pinecrest Practice Growth, we sincerely hope that you find the perfect balance between your offense and your defense to become more financially successful, and that your practice continues to grow because of it! Have a great week everyone!