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Revenue and Profit Margins
The dental practice can be very profitable, with general practitioners generating around $771,000 annually and specialists up to $1.1 million. The net profit margin is 24% to 40%. -
Factors Affecting Profitability
Various factors impact profitability, such as overhead costs, location, services offered, and patient demographics. -
Ownership Benefits
Owning a dental practice can lead to building assets with value and potential for sale. Effective management of costs is crucial for profitability.
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Average Revenue
General dental practices average $771,000 per year, with specialists at $1.1 million. However, overhead costs consume 60-75% of revenue, resulting in a net profit margin of 24-40%. -
Patient Acquisition and Spending
Dental practices lose 10% of patients yearly, aiming to add 25 new patients monthly per full-time dentist. The average spending per visit is $290, with per capita spending around $430 yearly. -
Income Discrepancy
Employed dentists earn around $170,000, while practice owners make an average of $175,000 annually. Ownership offers the advantage of building equity and valuable assets.