Frequently Asked Questions

Question 1

How much could a new squat realistically turnover from scratch in year 1 if the dentist was active in marketing and the dentist took an active part in the community? My understanding is that your practises have both broken even after about one year. What do you think the key areas were in this?

Answer 1

Our experience has shown around £120k-£200k is possible in the first year depending on the type of dentist and the nature of the work involved. Key to hitting the higher figure goes back to before you open the practice and includes things you need to consider:

1. location, location, location
2. branding and design of practice including marketing concepts in place
3. tight control on costs and also a focus on targets.

Question 2

As an average two surgery practice what are the (average) turnover to profit ratios (one dentist, one hygienist)?

Answer 2

I assume you mean by you not working there, and you have other associate dentists doing the dentistry. Over the medium term, I would say a net margin would be in the region of 15%-20%.

Question 3

Do you know the average marketing spend to get a new patient and what is the marketing spend as a % of turnover for the average practice? Any idea how this compares to other industries?

Answer 3

Difficult one to answer as no definitive figures exist. But my experience has shown that location and website and great dentist are the key to a successful marketing spend. Adverts etc. have little impact and are costly.

Question 4

What is the breakdown of turnover in relation to sales, rent/rates materials, training, staff wages, other overheads?

Answer 4

Staff wages/turnover – 15-17% (includes training ) Lab- 7-10% Materials – 5-7%

Question 5

What do you think would be an average amount of rent and rates for a new business? I appreciate that geography plays a key role here – we are probably looking at city locations.

Answer 5

As an idea the rent could vary from £20/sq ft, to a high profile location would be around £50-£60/sq ft.

Question 6

What are the average start up costs approximately for a squat, fitted to a reasonable standard? Again I appreciate that a lot of money can be spent but do you have an approximate figure for a ‘good standard’ squat?

Answer 6

Between £150k-£200k you should get a good 2 room surgery kitted out….but it can be done cheaper, too.

For more answers please contact us on info@samera.co.uk.