Q: What does Simpli Dental help with?
A: Everything that we possibly can! We assist in the search and selection of real estate, your clinic design and construction, initial equipment and supplies ordering, software and technology implementation, staff training and ongoing support. Many of these tasks will also require yourself and other professionals such as commercial real estate brokers, architects and equipment suppliers.
Q: I want to learn more and find out next steps, who do I contact?
A: You can email Dr. Blake Mitchell directly at email@example.com. We will start with an initial phone call and application. From there, we will want to know what your personal and professional goals are. Once determined that we are a good fit for one another, we will want to meet in person and take a tour of your local market. From here, the fun part begins and we can start working towards getting you a new clinic!
Q: Why charge lower fees?
Q: Won’t charging lower prices create a “race to the bottom”?
A: We don’t think so. Many industries have different businesses that provide a varying level of price and service to their customers. Some companies even have specific brands within their organization that do this. Car companies (Volkswagen, Audi and Porsche) and hotel chains (Marriott or InterContinental Hotels Group) are good examples of this. We believe that dentistry is no different. As our industry changes and outside investment comes in, there will be segmentation and price competition. Look at Walmart or Amazon as an example in the consumer goods industry. Some offices will be part of a big group while others will remain independent. Some will be chains with a consistent look and feel while others will be unique and boutique. We don’t believe that one way is better than another, just that our niche of price-sensitive consumers is under serviced.
Q: Don’t lower fees mean lower revenue?
A: Not necessarily. A quick example will best explain this. Dentist A charges $1,000 for the same procedure that Simpli Dental charges $800 for. The patient sees the value in completing the treatment but has to pay for the service out of pocket. They choose to see Simpli Dental because they can save $200. With this particular patient, Dentist A made $0 while Simpli Dental made $800. Higher listed prices that patients don’t pay for do not create revenue. A moderately priced fee that patients pay for results in revenue. Yes, it would be great if we could charge a high amount for our services and all patients would happily pay for them, but this isn’t the case and we need to be conscious of what is happening in the marketplace and what consumers can afford.
Q: Am I going to attract low-quality patients that don’t show up for their appointments?
A: Not anymore then in any other clinic. Our patients are as respectful as those of any other clinic. They consist of middle-income people such as small-business owners, farmers, retirees, independent contractors and many others that either have to pay out of pocket or co-pay alongside their insurance. From our experience, we find patients to be generally more appreciative and accepting of treatment. Funny thing is, when you provide services at a reasonable price, people trust you! It’s a nice feeling and we enjoy forming quality connections with our patients.
Q: Is the 6% licensing fee calculated based on gross revenue or net income?
A: The licensing fee is calculated based on gross collections. The revenue from this goes to the parent company to help support practices from start up through growth and ultimately retirement and/or sale.
Q: Can I can charge lower prices until I attract enough patients then increase my prices?
A: Probably not a good idea. You will receive backlash from patients and it won’t be consistent with our brand. If you would like to do something like this, we suggest doing so independently. We are looking for ownership partners that believe in the business model of providing dental services at a competitive price.
Q: Don’t the majority of patients have insurance?
A: Yes, the majority do. But according to the Canadian Dental Association, a lot don’t. In fact 32% of the population does not. Of the remainder that do, many need treatment that results in them having to pay a portion out of pocket. Resulting in a large group that is price-sensitive.
A: Generally 1,200 – 2,000 per full time dentist.