How to Create Your Plan 4 minutes
This chapter I will educate you on how to create a profitable plan and give you resources to make your own analysis so that you can launch your plan.
Chapter 2 : How to Create Your Plan
In this chapter we will be talking about how to set up and create your plan, how to price your plan and which benefits are most common in dental membership programs. Let’s get started!
We work with practices from all over the nation and have benefit if seeing trends and data specific to membership programs. One of the biggest benefits of starting your own dental membership program is control and not relying on a 3rd party to dictate your benefits and discounts. Here are the most common benefits offered in successful membership programs:
These suggestions are given based off of research. We work with practices who are successful and those who are struggling and have seen what works and what does not work. The biggest thing to remember while setting up your plans is to KEEP IT SIMPLE!!!
Pricing for Adults (14+)
- Annual Pricing: $299, $350, $399, $450 – depending on your location and demographic
Pricing for Children (0-13)
- Take the adult annual price and subtract $50-$100
- Example: If the adult is $350, you could set the child at $299 or $250 annually
Offering a monthly plan can be a huge benefit for your practice and your patients. Monthly reoccurring revenue is more valuable because of the nature of monthly expenses in your business. If you can generate a large amount of monthly revenue this will help smooth our cash flow gaps in your practice. In fact, small monthly subscriptions seems cheaper to patients, it becomes a no-brainer decision for them. If you are going to offer monthly plans, I recommend that you have the patients sign a yearly agreement and collect ACH – bank account. There are some states that only allow practices to offer monthly plans. So let’s talk about some tips for setting up a monthly plan.
- Take the adult and child annual price, add $50 and then divide it by 12
- Example: If the adult price is $350, this will be the equation $350+$50/12 = $33.33. Set the monthly price to $33.00 for the adult) On average we see monthly membership plans range from $20 – $40 per month.
- 2 Exams
- 1 Emergency Exam
- 2 Cleanings
- 2 Fluoride Treatments
- 2 Cancer Screenings
- 2 Periodontal Screenings
- 1 Set of Bitewings
- 1 FMX or Panoramic X-rays (1 Every 3 Years)
- OR All X-rays as Necessary
- 15% or 20% Off Additional Treatments
- Some practices offer additional discounts like $100 off Invisalign – but remember, don’t over
Membership Plan expenses:
On average we have noticed that the total expenses to offer a membership program range from $90 – $120 per year. This includes paying for supplies, time from hygienists and dental assistants. If you really want to understand the total expenses, I recommend using our profit margins calculator – boomcloudapps.com/profit-margin-calculator/. The links will be provided in the chapter page.
Jordon Comstock is the founder and CEO for BoomCloud. He focuses on teaching dental practices about the importance of creating membership programs to generate recurring revenue, build patient loyalty, increase external marketing and increase case acceptance.
Chapter 1 - What is a Membership plan
Chapter 2 - How to Create Your Plan
Chapter 3 - Benefits of a Dental Membership Program
Chapter 4 - What is BoomCloud?
Chapter 5 - Eight Reasons to Generate Predictable Recurring Revenue
Chapter 6 - The Growth Mindset Framework
Profit Margin Calculator
Use this excel template to help you understand your expenses for each benefit you add to your membership program and how much profit you make per benefit.
Use this sheet to see the most common expenses from supply costs to employee hourly rates. This is helpful as a quick guide to making sure your membership plans are priced to make a profit.
Download our free ebook about creating, organizing and automating a dental membership program and share it with your team!
Use this free check list to get your team on track and start preparing to offer your dental membership program!