The subscriber-based business model
They allowed readers to subscribe to a fixed product every month, the product was sent straight to their reader’s door via a mail-order service.
You’re probably wondering: how can this model be used for dental practices?
A more closely associated subscriber example would be the model of fitness clubs.
It allows the fitness club to have subscribers (members) who pay an annual charge divided over 12 months.
This ensures the gym has constant and predictable revenue coming in for the exchange of allowing its subscribers to use its facilities.
Dental plans also work in a method similar to that of the fitness industry.
It allows you to offer your basic service to members (patients/clients) with a fixed monthly cost.
I say basic model as most dental plans include a dental check-up, hygiene appointments and X-rays.
The advantage dental practices have over fitness gyms is that they are able to offer a basic service plus additional discounted services.
Not only does this mean that you will be receiving a predictable, regular, monthly income, it also gives you the opportunity to profit from additional discounted private services, for example: private cosmetic treatments.
A subscriber based model guarantees you a regular monthly income for a minimum of 12 months (can vary depending on sign-up agreement), which also benefits the value of your practice.
If a potential purchaser is made aware that the prospective dental practice has a regular income from 500 patients who each pay £10 a month, it becomes crystal clear that he has a level of safety and an opportunity to make additional profits from cosmetic treatments just from those 500 private patients.
It also allows the business owner to plan their budgets for following months knowing they will have X amount coming in every month.
This can be used for further business growth and reinvesting into marketing, equipment etc
From a consumer’s point of view, the consumer is happy that a direct debit system is making their finances easier to manage, they are clear with what they expect to receive and they also receive benefits that pay-as-you-go patients do not receive.
It’s a win-win situation.
Signing up to a dental plan provider is only the first step.
A subscriber-based model needs its own evaluation and execution strategy from the start and cannot be left on the sidelines and expected to grow on its own accord.
In the way a clinical service business model is completely different to a retail model, this model also differs.
All operate in a different manner, require different types of marketing, consumers have different outcomes at the end of the service and they all have different operating structures overall.
As can be seen by the previous example, a subscriber-based model is also different and requires its own structure of operating, but once done right, it can make business feel a lot less stressful.