The right fee structure is crucial for the success of your dental practice. While competitive pricing may seem like a strategy to attract new patients, undercharging for your services can actually have negative consequences, especially when it comes to how patients perceive the quality and value of your care. Are the materials lower quality? Is the dentist not as experienced? Here are some of the ways that undercharging can impact the perception of your dental practice.
Low Prices Can Create Questions About Quality
When patients are evaluating dental providers, price is just one factor. Trust, quality, and professionalism matter just as much! It might seem counterintuitive, but pricing things too low can make potential patients question the quality of your services. In many industries, including dentistry, people tend to equate price with value. If your dental practice charges far less than others in your area for the same procedures, patients may assume the service is substandard or that you’re cutting corners, even if that isn’t true.
It Can Make It Harder to Raise Prices
If your dental practice starts out with very low fees, it can be difficult to raise them over time without causing patient pushback. Patients get used to what they’re paying, and sudden price increases can result in dissatisfaction or even lost patients. Establishing fair, sustainable pricing from the start not only protects your bottom line but also sets patient expectations appropriately. That way, when small increases are needed, they feel incremental and reasonable.
You Risk Undervaluing Your Skills and Services
Dentistry is a highly skilled profession. All of your education, continued training, and investments in equipment contribute to the value you provide. By undercharging, your dental practice may unintentionally imply that your expertise is worth less than it actually is. This can also impact team morale and how you see your own worth as a healthcare provider. Confidence in your pricing reinforces confidence in your capabilities.
Undercharging Can Hurt Your Long-Term Profitability
While low prices may attract a few cost-conscious patients in the short term, undercharging can hurt the long-term financial health of your dental practice. Dental practices carry significant overhead costs, like staff salaries, equipment, supplies, software, and more. If your reimbursement rates are too low, you could be operating at a loss. Even if your schedule is full, you might not meet your revenue goals if every procedure that you’re providing is priced below the market rate. This can lead to more stress, tighter margins, and less room for growth or reinvestment.
You Might Attract the Wrong Patient Demographic
Pricing your services too low might attract patients who are more focused on cost than quality. While every patient deserves access to high-quality dental care, a patient base that weighs bargain rates more heavily than building relationships and good results may not be the best fit for a practice focused on long-term health and wellness. For your dental practice to grow sustainably, it’s important to attract patients who understand and appreciate the value you provide, not just those looking for the cheapest option.
Attract and Retain the Right Patients for Your Dental Practice with Help from APEX Reimbursement Specialists
Need help reviewing your PPO contracts or optimizing your fee schedule? APEX Reimbursement Specialists is here to help. Contact our team today by calling (410) 710-6005. We look forward to working with you to make your practice a more profitable place.