Purchasing Decisions
Purchasing Decisions With Sully Sullivan
Do you focus on how much you can “save” when purchasing a product for your dental practice or how much it costs you by not having it?
When we are faced with purchasing decisions of any kind, it comes down to the value. Do we value the product enough to pay for it? If someone told you to buy Bitcoin now and it would provide a guaranteed 30% increase in your investment, would you do it? Does $10,000 sound high for one Bitcoin? It does, but if my return is 30%, that amount is a no brainer.
Opportunity Cost
A dentist friend of mine calls it “opportunity cost.” How much am I going to miss by not having it or not using it? This was the first I had heard of this from a dentist. He collected 7M last year with two doctors. If you got a screaming deal on your digital x-ray system, but you couldn’t see to diagnose treatment, then you lose more money in the first week than you did by saving 5k on the sensor. You can save on certain products, but be careful going cheap on what actually produces income in the practice.
If you saved $15,000 on buying equipment for your dental office, but that costs you $15,000 in treatment acceptance in the first 30 days, does $15,000 sound like a lot of money? I am guilty. I save some money on a dune buggy for the kids. It was manufactured overseas and it broke within the first week of having it. I called a few repair centers, and they would not repair it since I did not purchase through them. Guilty. Lesson learned. Should have paid triple the price, and the kids would still have one that worked and someone local who would fix it when it breaks. It will break, just a matter of time.
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