Is the cost-of-living crisis impacting your dental practice?
Featured Products Promotional FeaturesPosted by: Dental Design 9th September 2022
For the vast majority of UK individuals, the coming months are set to become more expensive than ever. Not only are we dealing with soaring energy prices, but there are other costs to consider, with food prices, petrol prices and the rate of inflation on the rise too.
It’s been a rocky road, and as we’ve navigated our way through both Brexit and a pandemic, people are starting to feel the pinch.
But what do these challenges mean for the future of your business?
Issues affecting all
First of all, let’s contextualise what these rising costs mean in the bigger picture. Patient-wise, while there will be those who can happily afford these extra pressures on their finances, there will equally be those for whom dentistry will become a luxury. This may mean that your business will be seeing more cancelled appointments, more no shows and more people unwilling to pay the price for treatment.
A news report in 2019 suggested that a third of British people already didn’t attend the dentist because of costs.[i] Now, with dentistry more expensive, people having less disposable income and the access crisis meaning that services are unavailable for so many individuals, it’s almost guaranteed that many will eschew treatment altogether.
We can’t disregard the impact this will be having on your staff as well. Those on the lower end of the payment scale will be impacted the most, and it’s definitely worth speaking to your team to see if anyone is struggling and if there are any ways you can help relieve this pressure.
That’s not to mean that anyone will be safeguarded from these price hikes, and practice owners will also start to see the difference as running the business become more expensive too.
Energy – what to do
The increase in energy prices is particularly concerning for dental practices, especially as these businesses tend to have significant energy consumption. The necessity for high-powered equipment, constant water use and computers running throughout the day mean that your bills are likely going to see a substantial increase when the price cap moves again in October.
You’ve likely already read articles about reducing energy consumption and making eco-friendly switches in practice, and these are definitely valid approaches to take. Even the introduction of a smart meter can instantly give you more control and awareness of energy use, so don’t be afraid to take these tips on board.
Fuel costs increase costs across the board
Petrol prices are skyrocketing, and they show no sign of stopping anytime soon. At the time of writing, the average price for a litre of petrol is 167.7p, with the same quantity of diesel costing 181.14p.[ii]
As well as costing more to get to work, the rising petrol prices are also likely to be factored into prices from your suppliers too. For example, dental laboratories that deliver will probably increase their prices to cover the fuel expense, and other businesses with delivery options will likely follow suit. Businesses will also have to start putting the price of products up, especially if what they sell requires considerable transit distances.
For patients, the rising fuel costs could be the difference between them making the journey to your practice or not. It’s another expense that needs to be factored into their budget, so even if they can potentially afford treatment, if the journey to your practice is significant they may be forced to look for care closer to home, if available.
Preparing for the future
Bearing these factors in mind it’s likely that for a vast majority of dental practices, the cost-of-living crisis is going to result in lower revenue in some way or another. As such, having a proper grasp of your finances is essential.
This is especially true if you have any big plans for the future, such as wanting to purchase a new practice or heading towards retirement. As these goals effectively rely on your financial position, significant changes to the spending power and income of everyone involved in your business could create roadblocks to your ideas, leaving you unsure how to proceed.
One way to ensure you are in the best position possible to navigate this situation is to enlist the help of independent financial advisers such as the team at money4dentists. With decades of experience helping dental professionals to understand their finances and reach any goals, the team is well-positioned to assist you with all financial matters.
A long journey ahead
Ultimately, there is no way to predict how the cost-of-living crisis will be resolved and what long-term effects this will have on the UK population, and, in turn, the dental industry. However, by making sure that you have the best financial advice available, you’ll have the information and advice you need to be able to overcome any challenges ahead.
For more information, please call 0845 345 5060 or 0754DENTIST.
Email info@money4dentists.com or visit www.money4dentists.com
Author: Richard T Lishman, Managing Director of the 4dentists Group of companies
[i] Independent. Third of Britons Don’t Go To The Dentist Because It’s Too Expensive. Link: https://www.independent.co.uk/money/spend-save/third-britons-dont-go-dentist-cost-insurance-health-cash-plan-nhs-a9001521.html [Last accessed May 22].
[ii] Independent. Petrol and Diesel Prices Hit Record High. Link: https://www.independent.co.uk/news/uk/rishi-sunak-fuel-prices-rac-foundation-b2086135.html [Last accessed May 22].
