How to Price an In-Office Membership Plan for Your Dental Practice
Creating an in-office membership plan is an excellent way to offer affordable dental care and maintain a steady revenue stream for your practice. However, getting the pricing right is crucial to the plan’s success. Here are some things to consider when pricing your membership plan.
Cost Assessment
Start by thoroughly assessing your costs. It’s essential to understand your operational expenses, such as staff salaries, utilities, and supplies. Additionally, you need to consider the costs related to the services included in your plan, such as materials, lab fees, and the time your team spends with patients. These factors help you establish a price that not only covers your costs but also ensures your plan is profitable.
Patient Demographics
Next, think about your patient demographics. What are the average income levels of your patients? What dental services do they need on a regular basis and how can your plan help them access those services regularly? Are there specific groups you want to target? What services and offering would be enticing for them? Tailoring your plan’s services and pricing to these factors ensures that your offering is attractive to your ideal patient.
Competitive Analysis
When designing your plan, it’s also important to conduct a competitive analysis. Look at what other dental practices in your area are offering for their membership plans. Is your pricing competitive? What unique benefits does your plan offer that set it apart from other practices around you? Understanding the competition helps you position your plan effectively and attract more patients.
Tiered Pricing
Consider implementing tiered pricing to reach a broader audience. Offering basic and premium plans with different levels of service can help you cater to various patient needs and budgets. You might also want to introduce discounted pricing for additional plan members, which can encourage entire families to sign up, thereby increasing your patient base.
Payment Structure
Another key consideration is how you structure payments. Offering both annual and monthly payment options can appeal to different patient preferences. Most patients will choose monthly payments over annual, if you offer them the choice. Some patients will prefer annual payments. We have found that patients on monthly payments stay on plans longer and have less resistance to price increases. Patients that opt for annual payments often purchase a plan for a year, but delay renewing it until they come back in. You may want to consider offering a semi-annual plan for those that don’t want to pay monthly.
Enrollment Fees
A lot of offices are worried about patients signing up for their membership plan, receiving all the included services (exam, cleaning, x-rays, etc.) and then bouncing. A one-time enrollment fee can help cover some or all the initial costs and reduce the likelihood of frequent cancellations. An enrollment fee helps stabilize your membership base by ensuring that patients who sign up are committed to your plan. Consider your enrollment fee plus your first month the “deal” un-insured patients pay to get their exam, cleaning and x-rays. That way you aren’t behind financially from day one. We recommend an enrollment fee between $25-$99 depending on how aggressively you want to price your plan.
Finally, remember that pricing your membership plan is not a one-and-done task. Regularly review the performance of your plan, gather feedback from both patients and staff, and be ready to adjust pricing or services as needed. This flexibility ensures your plan remains relevant and successful over time.
For help pricing your plan, check out our pricing tool at dentalmenuonboarding.com.
