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a blog by Chris Barrow

Price increases

Dear Chris,

I am just feeling a little unsure as October approaches. This is when Denplan write to all the patients to inform them of our 2010 fees, with a 5% increase as discussed with you before. I was really hoping by now to be 100% definite about building the new practice and I am still a way short of being able to announce this. I was hoping to send out a newsletter about the new practice prior to the fee increase. Please can you let me have your thoughts on this. Its interesting that I was discussing price increases on plans a few days ago. Working with a savvy dentist who had frozen his plan price “in view of the recession” but had increased FPI prices by 25% – nobody noticed or complained and he has increased his cash flow considerably. Patients notice increases in regular payments – fact – check ups and hygiene. I suggest you freeze the Denplan increase, make sure you clearly define the demarkation line between “maintenance” and “cosmetics” and then significantly increase your prices for cosmetics – and THEN – get out there and sell cosmetics! And before Denplan throw a fit (I have no beef with them) – I would say a similar thing in respect of any membership scheme.

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