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a blog by Chris Barrow

Again, on the subject of price rises

This price change allows us to continue to deliver service quality, continued product innovation and is in line with the increasing cost of doing business and inflation.

It's perhaps worthwhile taking a leaf out of the Align Technology book (see above) when announcing your 1st January price increases to patients.

In amongst all the confusion around VAT charges, the above quotation is the bottom line in respect of Align's 5.5% increase "across our product portfolio to all Invisalign treatment packages and secondary orders."

No doubt there will be some who will search around for cheaper aligner options, but we all know that the vast majority will accept the inevitability of price reviews, appreciate the products and service they get, and soldier on.

Having said that, even before the announcement, I have been encouraging clients to take a careful look at the profitability of their Invisalign sales.

It is worth reminding you that Align's January price increase can be paid for in four possible ways:

  1. Reduce your Owner profit;

  2. Reduce your staff wages (or members);

  3. Reduce your clinician remuneration or

  4. Increase the price to the patient.

Some may suggest I throw in "look at more efficient ways of working" but I suggest only marginal gains there.

You can't not choose one of these options, even if you abdicate. I wonder how many will choose option 4?

In the meantime - as I reminded my clients on our weekly call last night (cliche alert):

"We review our prices in order to maintain our standards of customer service and clinical care."

Your patients can:

  1. Pay up;

  2. Move on.

p.s. later today, an Autumn Budget - be prepared.

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