Lab Fees

Lab account for a considerable amount of most offices’ expense. Therefore, saving on them will play a major role in your overall goal to reduce overhead to less than 40%. (I have mentioned before that if you are a group practice with an overhead already under 40% these tips can take your overhead to an all-time low).

Changing dental labs is not easy, especially if you are happy with your current lab's work. But if you are not happy with your lab or if there is part of the lab work (removable or fixed) that you are not totally satisfied with, saving will be much easier.

If you are not happy with your lab, or if they are not meeting your expectations

In this scenario shopping for a new lab will benefit you in two ways: saving money and improving quality.

There are thousands of dental labs in this country, and finding a good one is not easy. However, there are a number of smaller labs with competent technicians that charge a fraction of what larger, highly publicized labs charge.

In bigger labs, oftentimes you don't even get the same technician every time; in effect, it is like sending your work to a different lab each time! Well, if that is what you are doing, why not try new labs that charge less? There are many labs that will make you a few crowns at no charge just to try them. This way you not only save money, but are be able to find a lab you are comfortable working with.

I have been working with a local lab for years now. Just to give you an idea, I pay $45 for PFM and $95 for PFG (precious metal). Their work is excellent and they have good customer service with free delivery and pick up.

Now, let’s say you are paying $75 for a PFM and $125 for a PFG, and you do an average of thirty to forty cases a month. By changing your lab to one that charges my lab's rates, you can save up to $14,000 in a single year!

Wouldn't you rather spend that extra $14,000 on, let's see ... an exceptional vacation or a big down payment on a new car?! I bet you would. The difference may be even larger than this, depending on how much you pay now and how many units a month you have.

If you are happy with your current lab

If you have been working with your current lab for years and you are absolutely happy with them, it is difficult to make a change. But let me ask you this:

"When was the last time you asked for a discount from your lab?”

When was the last time you told them you are happy with their work but that you have many other options at lower prices, so if they could give you a 10% or 15% discount on all the work you send them you would stay with them? Don't forget to mention the fact that you have been loyal to them for all these years and, considering the amount of business you give them, you expect a little bit of a break on the bill.

Labs are businesses too; the same way we trade lower PPO fees for more business and accept HMO insurances for more patients, they will give you a break when they understand the alternative is losing you.