Dental Supplies

Dental supplies account for around 10% of a practice’s monthly expenses. Most offices consider convenience a significant factor in shopping for dental supplies, and have a staff member in charge of ordering, usually through a catalog.

When was the last time you revised or reevaluated your office purchasing practices? If your answer is “a long time ago.” I wouldn't be surprised.

But what is the reason for this? More often than not, you are too busy to bother yourself with what you may consider unworthy savings. This is especially true when you know that it might require ordering from different suppliers, creating new accounts, and keeping a track of those accounts and bills.

So, what is the solution? It really is not that difficult. But before I get to the solution, let me explain why this is worth trying.

As you know, overhead has two major components:
1- Rent and payroll                2- All other expenses

Let's say there are 8 or 9 other categories that make up your expense accounts. If around 60% of your overhead is spent on the "other expenses" category, and you save 10 to 20% on each category, this can add up to $40,000 worth of savings a year for an office with an annual income of $500,000. The issue is often overlooked is that these savings only come in pieces; in order to experience the benefits, you have to put them together.

The fact that we tend to view these savings as "unworthy" is the main reason we fail to take any action on this. This passive approach is why the average overhead for dental offices around the country is over 65%!

So, enough with the lecturing; let's see how we can handle this in the middle of a crazy and busy day. The solution is actually quite simple, delegate. Find the lowest priced comprehensive catalog in the market, then propose the following to the staff member who is in charge of ordering:

Tell him/her that whenever he orders something from another company or rep who offers discounts comparing to the base catalog price, you are willing to share 50% of the savings with him.

In other words, if a hand piece that you need costs $400 through your present (base) catalog (including shipping) and your staff member can find the same hand piece from a discounted local supplier for $320 including delivery (20% discount), then you will give $40 (half of the amount saved) to that person.

The total saved may seem insignificant, but as I explained earlier, you must deal with discounts one dollar at a time. Not to mention the fact that this process works like a raise for your staff, making them happier without costing you a penny. It also trains them to pay more attention to prices every time they pick up the phone to order something. Essentially, it is a win-win situation.

If you spend an average of $5,000 per month on supplies, you can save around $6,000 a year with this system, while your staff gets an extra $6,000 a year in the form of bonuses! Tell me, which one of you would not like this!? Remember, that huge bonus to your staff has not cost you a thing!

Bulk Shopping

Every once in a while, your dental supplier rep comes to your office with a special offer on bulk purchases. I personally do not like the idea of bulk shopping, and here is why:

1. The products are usually things that are not necessary.
2. We buy things we don't need.
3. We buy things we don't want.
4. The package has so many of the same items in it that most of them end up passing expiration date.
5. If you dislike the material, it will join the rest of the junk you have bought in the back of one of your cabinets!
6. Overall, they end up being more expensive.
    

Impulse Shopping

Avoiding the temptation to impulse shop is a key factor in saving on supplies. What? You don't do that? Ok, I believe you... Just take a look far back in your cabinets, where you push the stuff you don't use! Better yet, gather everything out of your cabinets that have not been used for over a year or are expired. If you can place them all in one trash can, I'll stop talking!

Impulse shopping often occurs when attending conventions and meetings. You go there with the intention of saving on a few items you need, then end up buying three or four times as much. You come back with receipts for a lot of things you did not want or need in the first place.

We do this even more when our practice is financially healthy. For some strange reason, we shop for our practice with much more ease than when we shop for ourselves, as if the money we are spending doesn't belong to us!

Keep it Simple

Another way you can maintain low expenses for your dental supplies is to keep your armamentarium simple, but complete.

Let me ask you this: How many types of permanent cements do you have in your cabinets? How many brands of composites do you have? Should I even ask about impression materials?

The point is, as soon as we hear something good about a material we buy it right away, but when we use it and don't like it we go back to the same material we are comfortable with.

The solution is this:

Do not make your purchasing decisions based on what you see in advertisements or what you read in sponsored articles in       "free" publications!

Buy materials only if you really think it is time to switch to a better material. Once you get the new and better material, stick with it until substantial research and studies suggest that there is a better product available. Then, switch again. The average rate is at least one to two years for each material group. 

In the last three years I have not changed a single brand or type of material I buy, with the exception of those that are supported by respectable and independent studies as better materials. Instead of buying different things every time I need to restock, I buy the same thing, at the best price. All of my staff members are familiar with the names of the materials I use; some even know the prices by heart, and are able to spot deals quickly and efficiently.

Keep in mind that at no point should you buy anything less than the best. Saving by buying poor quality materials or equipment is the wrong way to save, and is harmful in the long run.

It is imperative to be knowledgeable when it comes to dental material; don't just let the sales rep tell you what you need to buy. Don't let them fool you by purchasing the same material with different names. (Buying the same flowable composite as a veneer cementing system, then again as an inlay cementing system, then again as a build up material kit, then again as a crown repair kit… and the list goes on!)

Also avoid purchasing materials in kits. Buy refills (only the part of the kit you need) because,

1- Kits contain things that you already have.
2- They have things that you don't need.
3- They take up more space.
4- They are more expensive.

By implementing an effective ordering system, you can save yourself a great deal of time and money when ordering dental supplies.