Should You Be Worried About Over-saturation?
We’ve noticed that over-saturation is a big concern for dentists looking to purchase a practice or build a practice from scratch. Unfortunately, it’s difficult for us to give a –one-size-fits-all answer to this question because it depends on so many different variables. The type of practice you own, the size of the city you live in, the size of your practice, etc.
For example, the economy in states like Iowa, Idaho, Missouri, and
Wyoming have better economies than states like California, Arizona,
Nevada, and Florida. As another example, certain practices do better
than others. Comprehensive practices that are centered on patient
relationships, and the health of each individual patient are the
practices in which we see the most growth.
We can break this down for you by using 3 different dentistry business models as examples:
- First Level: The first level is tooth-centered
dentistry, and this type represents around 60% of all dentists. This
means that this level also has the highest competition for new patients.
Because the average patient only brings around $1,000, this level will
require a much higher volume of new patients coming in. First level
dentistry is down around 25-30%.
- Second Level: Because second level dentists have
received more technical training, they don’t need such a high volume of
patients. This is because each patient brings in around $3,000. The
success of second level dentistry has a lot to do with the size of the
city and the number of patients. On average, these practices are only
down 1-15% depending on these factors.
- Third Level: This level has the smallest percentage
of practices, which means that these dentists are thriving because
they’re in much higher demand. This is the patient-centered,
relationship based practice. Not only do these dentists have extensive
training, they also have the drive and the skill to form long-term
relationships with their staff and their patients. We see third level
practices thriving no matter the specialty or the city they’re in.
If you’re concerned about over-saturation in your city or specialty,
let CTC Associates help. We can provide you with information and
research to help you know what your options are and enable you to be as
successful as possible. We want to help you become a third level
practice, so give us a call today!