When people think their overhead is too high, many dentists start by looking at supplies, even though it is a relatively small percentage of total overhead. In this episode, Kirk Behrendt brings back Ariel Siegel, a phenomenal coach at ACT, to break down supplies percentage, what it is, and how miscategorization can skew your data. To learn how to get your supplies within the right benchmark so you can create a better practice and a better life, listen to Episode 1000 of The Best Practices Show!
Learn More About Ariel:
- Send Ariel an email: info@actdental.com
- Follow Ariel on ACT's Instagram: https://www.instagram.com/actdental
- Send Courtney an email to learn more about ACT: courtney@actdental.com
More Helpful Links for a Better Practice & a Better Life:
Episode Resources:
Main Takeaways:
- Definition: Supplies percentage measures total revenue spent on clinical items like restorative materials, gloves, masks, and sterilization items.
- Categorization: Ensure expenses are categorized correctly so clinical supply data is not inflated by miscategorized items on your P&L.
- Benchmarks: The healthy benchmark for clinical supplies should be kept between 5% and 6% of collections.
- Delegation: Doctors should delegate ordering and tracking to a team member to save time and increase accountability.
- Inventory Management: Effective systems prevent overspending on rush shipping and reduce waste from expired materials.
- Purchasing Groups: Joining a group purchasing organization like Smile Source can reduce costs through negotiated vendor contracts and rebates.
Snippets:
- 0:00 Introduction.
- 1:30 What supplies percentage actually measures.
- 2:38 Why accurate categorization is key for tracking.
- 4:21 The impact of inventory management and waste on overhead.
- 7:02 Simple systems for tracking and delegating to the team.
- 10:08 What to do today if your percentage is too high.
- 11:41 Using group purchasing to reduce the cost per item.
- 12:54 Last thoughts.
Ariel Siegel Bio:
Ariel Siegel is a phenomenal Lead Practice Coach at ACT Dental who helps dentists find clarity through their numbers. She is dedicated to helping teams implement disciplined systems that improve practice efficiency and profitability. Ariel believes that once a practice has accurate data, they can make smart, proactive decisions that improve both the business and the lives of the team.