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Prioritizing Equipment Purchases

If your dental practice is thrivingempty dental room, you will likely be looking at purchasing new equipment on a regular basis. And you’ll have to make decisions as to which equipment purchases have priority over others.

Do this right, and you can enhance the profitability of your business, and the satisfaction of everyone who works with you. Get it wrong, and you can cost yourself money and good people.

The core factor behind most purchases is revenue—what purchases will generate enough revenue to justify the cost? However, it’s important to remember that revenue can come from a variety of factors, including:

Productivity—what does your office need to maximize the efficiency of you and your staff? Ask for suggestions from your associates and clinical staff.

New services—what equipment would allow you to expand the scope of your practice and generate cash from new revenue streams?

Reliability—is there old equipment that causes problems and disrupts the business? If so, it can be more cost effective to replace it rather than repair it. Your staff or manager should keep you informed of equipment needing attention or replacement.

Timing—equipment purchases can mean significant tax advantages depending on when purchases are made, especially at the end of the year. And the tax advantages may determine whether or not a purchase becomes a revenue generator—and how quickly.

Another good strategy is to look at any areas of your practice that are slowed or disrupted by lack of equipment. Consider the cost of buying versus lost potential revenue from the bottleneck. This may also show you that a purchase can be justified.

Would you like to know more? Use the “Ask The Expert” feature of our website.

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