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Uncomplicate your dental life with Dr. Howard Farran as he interviews your fellow townies and leaders in dentistry! Dentists and dental professionals share their wisdom to make your dentistry faster, easier, higher in quality and lower in cost. Episodes released every week day with the full transcripts at dentaltown.com/podcasts.
Howard Speaks with Scott Bradshaw and Miles Cone DMD, CDT on how GC has changed the dental industry over the past 100 years
Howard Speaks: Dentists could learn a lot from Costco
Dentists could learn a lot from Sol Price (1916-2009), the founder of Price Club in 1963, which became Costco, which pioneered the membership, absolute pricing authority, warehouse store retail model. The membership model is currently one of the hottest trends in retail. A store that tries to be all things to all people will end up being nothing to anyone. A retailer reflecting honesty, credibility, and a definite direction that can be understood by its customers and vendors will have a good chance to make it. Costco’s 3 Business Categories: Personnel, Product & Facilities. Costco’s 6 rules: Have the right kind, in the right place, at the right time, in the right quantity, in the right condition, at the right price. Costco counts on very significant productivity because they pay high wages and benefits. If you buy into the concept that Costco is the low-cost provider of goods and services and also pay the highest wages in retail and have the richest benefit plan, then we must be getting better productivity, because of every dollar that we spend on our business, $0.70 is on people. There’s a categorically false notion that the only business model in the service industry is the minimum-wage business model. Costco people work for years making great money plus health benefits. 87 million people have a Costco card because they have absolute pricing authority meaning if you see it at Costco, you’re sure it’s the best price you can find. Advertising is cost. The only secret to lower prices ins lower cost. So, if you spend 1-3% on advertising, you’ll raise your cost which will raise your prices. Advertising is like heroin, once you start doing it, it is very hard to stop. Word of mouth is the lowest cost most effective type of advertising. Costco saves 2% a year in costs by not advertising. In 2017 Amazon spent $6.3 billion in advertising, Target $1.4 billion, Walmart $2.9 billion. The average markup at Costco is just 11%, Walmart is 24%, Supermarkets 30%, Home Depot and Lowe's 35%.
Howard Speaks: In baseball and HR, three strikes and you’re out.
In baseball and HR, three strikes and you’re out. So, if you fire someone and they’re surprised, you need to reexamine your ability to manage and lead your team. Sometimes no matter how many times you tell someone they’re not performing and meeting expectations, they just don't get it. However, more times than not, managers and leaders want to avoid confrontation and they don't ever address the issues with someone and instead avoid the person. That's being a horrible leader or manager. Let’s say you open at 7:00 am and your assistant rolls in at 7:05. Young dentists are mad but don’t say anything. The better managers, as soon as time permits will call the employee back into their private office and explain the problem, open up a word document and leave while the assistant types out in their own words what went wrong and explains why it won’t be a reoccurring problem. Many times, you comeback to learn that she does this because she always stays an hour after we close while the other assistant flies out the door and she doesn’t think it’s fair. This is what you need know so you can build a winning team as opposed to other more common method where the first time it made you mad and you didn’t say anything. The second time it made you madder and you still didn’t say anything. Then the third time you erupt like a volcano and fire them. This person had no idea this was going to happen, they have monthly bills they need to pay, and now they’re shocked, saddened, and unemployed, all because their coach never showed up for the game. Watch any professional game and watch how the coach is intimately involved during the entire game, standing at the sidelines calling in plays, time outs, etcetera. Now watch Doc go back to their private office in between every patient and shut the door. If this is you, then you need to delegate to an office manager that has the same authority to make plays that match their responsibility. You’re either the coach or a player, cuz you can’t be both. So, play ball... and okay to win.
Howard Speaks: Getting to Yes by Tracking No
Getting to Yes by Tracking No means you better know your overhead and break even point for the day. The average net income for:
Dental Specialists ($320,990)
General Practitioners ($197,190)
Dentists who owned their own practices ($244,980)
Dentists who were employed at a practice ($147,950)
Oral and maxillofacial surgeons $448,140
Pediatric Dentists: $304,280
Howard Speaks: Does your dental team celebrate as much as your family?
Does your dental team celebrate as much as your family? Do they spend more time discussing problems than celebrating victories? The whole team is greater than the sum of each team member. There’s no such thing as a self-made dentist. You’re only gonna reach your goals with the help of others - and that means having fun.
Howard Speaks: Is a bird in your hand really worth two in the bush?
Is a bird in your hand really worth two in the bush? Is it really better to hold onto something you already have than risk it all for a double? Did capitalism die? Why didn’t you keep your fast-food job instead of spending years and student loans for something better? Saving money for retirement is about laying out a bird now to get two or more out of the bush. Do you really want to be an associate dentist? When you decided to be a dentist back in grammar school did you envision yourself as an employee dentist or the dentist owner of your own dental office, land, and building? Associate dentists are paid just enough money to kill all off all their dental self-mastery dreams. Don’t settle for a sure bird in your hand today if you have already proven that you have the internal self-discipline of delayed gratification to invest it in yourself in the hopes that someday it will be worth two birds. Dentists know this or they would have invested eight years of their life and half a million dollars to get a dental degree.
Although I’m still a pre-dental student, I listen to this when on the bus to gain further insight into the field/profession — a big thank you to Dr. Farran!
I listen to this podcast during my commute daily. It is fantastic to listen to cutting edge information from the thought leaders themselves. 5 Stars!