How do you determine what to charge for your treatments? Dr Manrina Rhode challenges conventional fee-setting approaches in favour of value-based pricing.
Simply matching local competitors or replicating previous practice pricing fundamentally misses the point of strategic positioning and value-based service delivery.
The airline analogy
Consider a London to Dubai flight. Budget airlines offer tickets for £400 with minimal service, while first-class passengers paying £4,000 receive chauffeur collection, expedited check-in, champagne service, and fully flat beds. Both arrive at the same destination in seven hours – yet the pricing differs tenfold based purely on experience and service quality.
Dental practices operate identically
You can position yourself as the budget-conscious provider, offering competitive pricing through careful cost management. This means accepting lower margins, employing staff willing to accept reduced salaries, sourcing economical materials and laboratories, and maintaining high patient turnover to achieve profitability.
Alternatively, you can create a luxury experience featuring cutting-edge technology – Waterlase systems, AI radiograph analysis, voice-activated environments, extended appointment times, and five-star service where every touchpoint feels personal and unhurried. Patients in this segment willingly pay premium fees for exceptional care and comfort.
The critical positioning decision
Neither approach is inherently wrong, what matters is choosing your position along this spectrum and committing fully. Attempting to charge budget prices whilst investing in premium everything guarantees financial failure. Conversely, charging luxury fees without delivering corresponding service quality will rapidly destroy your reputation and business.
Making it work
Fee-setting spreadsheets help calculate viable pricing considering all variable costs, but the deeper question remains: what experience are you actually providing, and does your pricing authentically reflect that positioning?
Strategic practice development
Ready to clarify your positioning and ensure your fees align with your service delivery? Contact DRMR about Manrina’s Mentorship at Dental Courses London to develop strategic pricing and build a practice that reflects your authentic values.
This article is sponsored by DRMR Clinic.
