Dr. Dean C. Bellavia

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How much can Invisible Aligners Increase Your NET


Monday, 11 August 2014 07:58
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How much can Invisible Aligners increase your net?  Is it worth it?  You may find the answers here.  Note: since Invisalign is the most popular plastic aligner, it will be used in the examples below.

 

Typical practices do about 5-15 simple cases/year and never develop the skills to use it for more difficult cases or to spend less chairtime/case.  Practices that do over 80/year learn the skills required for more difficult cases and fall into three distinct categories.  These categories are based on the difficulty of the case, the use of attachments/adjustments, and the number of treatment phases used.

 I call them the 35%, 45% and 55% practices.  The percent refers to the amount of time it takes to treat a full Invisalign case vs. a full braces case.  For example, if it takes 700 minutes of chair/room-time to treat a full braces case, it would take about 245 minutes for a 35%, 315 minutes for a 45%, and 385 minutes for a 55% practice to treat a full Invisalign case. The 35% doctors don't use many attachments and choose their patients carefully; they are rare since they need a big market to do over 80 Invisalign starts/year.  The 45% doctors are more realistic about the patients they start and don't try to start just any patient with Invisalign.  The 55% doctors start any patient with Invisalign, no matter how difficult the case, and may do 2 or 3 phases of treatment. 

 

Profitability is the bottom line.  If a practice charges the same amount for Invisalign as braces, say $6,000, they would net the following with the typical 45% practice net and $1,400 lab fee: 

 

35% practices: 0.45 X $6,000 = $2,700 net - $1,400 lab fee = $1,300 net or $5.30/minute for 245 minutes. 

 

45% practices: 0.45 X $6,000 = $2,700 net - $1,400 lab fee = $1,300 net or $4.15/minute for 315 minutes 

 

55% practices: 0.45 X $6,000 = $2,700 net - $1,400 lab fee = $1,300 net or $3.40/minute for 385 minutes 

 

Braces: 0.45 X $6,000 = $2,700 net or $3.85/minute for 700 minutes 

 

5-15 cases/year practices: 0.45 X $6,000 = $2,700 net - $1,800 lab fee = $900 net or $2.35/minute for 385 minutes (or $2.85/minute for 315 minutes), (or $3.67/minute for 245 minutes)

 

The 5-15 cases/year practices are better off not using Invisalign or they should charge $1,000 more per case giving them a $1,900 net (equivalent to $4.95/minute for 385 minutes, $6.05/minute for 315 minutes, or $7.75/minute for 245 minutes.

 

If you want to significantly increase your net with plastic aligners it is an all or nothing deal, requiring training courses, on the job learning, and advertising to the available market!  Thus, if you started 100 cases/year it would mean an extra $600,000 in gross production (minus $140,000 in lab fees), or $460,000 in net production times a 40% net (60% practice overhead with the extra Invisalign chairtime to do the 100 cases) or about $200,000/year net.  Or, you can charge an extra $1,000 and start 20 cases/year to increase your net by about $38,000/year (20 x $1,900/case net) and not have to do all of the extra work.  The choice is up to you.  

 

;">If you want to set, monitor and attain your goals, you might find the “Ultimate Goal-Attaining & reporting Kit” of value.

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