Production required to net $100

Jan. 11, 2010

As dentists, we have the opportunity to enrich the lives of many and be rewarded (financially) for all the good we do.

But here's a common problem with most dentists, and coincidentally I heard it again this weekend. Most dentists really don't get the link between production, overhead, and net income!

This weekend, a fellow dentist told me he just bought a new Mercedes with a payment of about $700 a month! Then he said, “Woody, that's just another two crowns per month!" Really? The chart below explains what is required to net $100.

Net Overhead Production needed

$100 40% $166.66
$100 50% $200.00
$100 60% $250.00
$100 65% $285.71
$100 70% $333.33
$100 75% $400.00

William W. Oakes, DDS, FAES, has been in dentistry for 30 years. He founded “Excellence in Dentistry,” which publishes The Profitable Dentist magazine, provides educational products, and conducts two national seminars each year. He also founded Oral-Vision, Inc., which became the nation’s second largest manufacturer of intraoral cameras. He has been in private practice since 1974 and serves on the staff of Floyd Memorial Hospital. He has published five dental books, authored numerous articles in peer-reviewed journals, and has presented over 500 lectures through the U.S. and Canada. You may reach him at [email protected].