Price hike or rip-off?

Hello, foot friends! Today we're talking about a topic that many podiatrists are concerned with: price increases in the practice. Yes, you heard right! It's a challenge to balance patient retention and economic stability. But a well-planned price increase can not only secure your livelihood but also guarantee the quality of your services.

Why are price increases necessary?

As independent podiatrists, you don't have a boss who transfers a salary to you at the end of the month. You have to generate all the income yourself for your practice, your private expenses, and for future investments.

Challenges:

• Fixed costs rise: Rent, electricity, materials, and insurance become more expensive every year.
• Cost of living: Food, train tickets, or services often increase at the turn of the year.
• Calculation errors: Many of you use prices that seem dictated by the market without analyzing your own costs.




Without regular price adjustments, the practice can become unprofitable, with fatal consequences for you and your patients.

The right calculation: How to do it

A sound price calculation is essential for a successful price increase. Here's a simple guide:

1. Determine fixed costs:
2. Practice-related costs (rent, consumables, equipment maintenance, etc.).
3. Private costs (living expenses, retirement provision, leisure, etc.).
4. Calculate costs per month:
5. Add up all fixed costs and determine a monthly value.
6. Divide by working days:
7. Assume about 20 working days per month to calculate the necessary daily income.
8. Include number of patients per day:
• Divide the daily income by the average number of your patients per day. This gives you the minimum price per patient.

7.Plan for profit and buffer:

• To build reserves and invest, multiply the minimum price by a factor (e.g., 1.5 to 2). This gives you your treatment price.

This course shows you exactly how to do it:

 

When is the best time for a price increase?

Many practice owners choose the turn of the year, as customers are used to price adjustments during this time. Alternatively, the time of a practice takeover or renovation is also suitable. A visual change often creates acceptance for new prices.




Dealing with objections

Of course, there will be patients who react to a price increase. But here are some arguments that will help you:

Cost increases: Explain that material and fixed costs have also increased for you.




Ensure quality: Higher prices allow you to continue offering high-quality services.




Market comparison: You don't orient yourself to your neighbor, but to your real costs and requirements.




Tips for implementation




Communication is key: Inform your patients in good time, e.g., with a notice or a newsletter.




Visual change: A small renovation or new equipment signals that the practice is developing.




Regularity creates routine: Adjust your prices annually or every two years to avoid large jumps.




Conclusion

A price increase is not an act of greed, but a necessary step to keep your practice running and to be able to provide long-term care for your patients. Sit down, calculate carefully and stand by your value as a podiatrist.




Because one thing is certain: Nobody can be Mother Teresa and pay the electricity bill!