Chiropractic Coaching: Practice Rescue Volume 4: Your Co-Efficient of Profitability

Chiropractic Coaching: Practice Rescue Volume 4: Your Co-Efficient of Profitability

Chiropractic Coaching: Practice Rescue Volume 4: Your Co-Efficient of Profitability

Hello everybody. And welcome to Thrive in Five. I’m Dr. Dennis Perman, and I’ll be your chiropractic coach for today. This Thrive in Five is the fourth in our practice rescue series called your coefficient of profitability. Now this particular section is about money. It’s about making enough money and while it’s not the most important thing in our practice, it is very important because you can’t keep your doors open and pay your bills. Unless you can make enough money to be able to pay everything and then have some left over for yourself. So making more money is not dirty. It’s not vulgar. It’s not inappropriate. It’s completely essential. And let’s go forward with a positive expectancy that you can make more money. So I’m gonna start with a story that no doubt you’ve heard before. The story of the dumb guy who buys 500 watermelons for $500 and then puts a sign by the side of the road, watermelons for sale, a dollar a piece, and his friend says, wait a minute, you spent 500 or 500 watermelons.

You paid a dollar, a piece for them. Now you’re selling ’em for a dollar, a piece. How do you make any money? And the dumb guy says, well, volume, of course, no, no matter how many watermelons you sell at the same price, you buy them for. You don’t make any profit. Unfortunately, this is what many doctors are doing in their practices without realizing it. Let me show you. So I’m gonna pick numbers to use. You can plug your numbers in here and you’ll see what I’m saying. Let’s say, for example, it costs you $12,000 a month to run your practice. Yours may be a lot more expensive, a lot less expensive. It doesn’t matter for this example. This doctor spends $12,000 a month on the practice. And let’s say the doctor works 30 hours a week, or something like 120 hours a month. Well, that means if it costs $12,000 to run 120 hours, it costs about a hundred bucks an hour to run.

Now, why is this important? Well, if you charge $50 a visit and it takes you 30 minutes to see somebody, then you schedule two visits per hour at $50 a piece, and you make a hundred dollars. But if you spend a hundred dollars on that very same hour, you’re selling $1 watermelons for a dollar. And that’s the reason why you need to be aware of your coefficient of profitability. What is that term? Well, it’s, it’s a, it’s a term I made up to describe how many multiples of your hourly cost you are earning so that you know how much you make. Let me give you an example. Let’s say you can see eight people in an hour, two every 15 minutes, and let’s say you charge $50 for each of those visits. Again, your numbers may be different. You can plug your numbers in, but listen to this workup so that you understand what I’m talking about.

So in an eight visit hour at $50 per hour, a $50 per visit, you’re making $400. If it costs you a hundred dollars an hour to run, then you are making 400 on your $100 expense. In other words, you’re making four times what you spend your coefficient of profitability is four. Now four is a perfectly valid and wonderful coefficient of profitability, but it’s not the only one watch. If you can only see four people an hour and you charge $50 for a visit. Now you’re making $200 for the hour. And your coefficient of profitability is two. Now you’ll find if your profitability co coefficient of profitability falls too far below two and a half or three, you, you have financial. So this is a good way for you to monitor your fee structure and make sure that you’re charging the right amount. Because if you are then your coefficient of profitability should be at least two and a half to three, preferably four or more.

Now, for some doctors who can see a lot of people very quickly, your coefficient of profitability might be eight or 10 Bravo to you. Good for you. But it’s really important that you make sure that it doesn’t fall below two and a half or so, because at that point you have financial pressure. Now I’m gonna be talking much more as we go forward about this, but you can dial into where exactly you are in the coefficient of profitability. By going to our practice growth calculator just you’ll see a, uh, QR code manifest on the screen. Go ahead and run your, your phone camera over that. And it will take you to the practice growth calculator. In a matter of moments, you’ll be able to put in some basic practice information and get back a wealth of distinctions about how to run your practice so that you can maximize your coefficient to profitability.

Now, if you, if you need to, and you certainly, you should take advantage of this, give a call, find out from us exactly what it is that you might need in order to make your practice growth the way you want it to be. Now, if you’re the seminar going type, and I certainly hope you are, then you may wanna know that coming up on October 13th, 14th and 15th is our super conference called getting inside the head of the decision makers. We have some of the finest presenters, neurologists, pediatricians, clinicians, some of the people who have invented some of the equipment that you use coming in to do a fantastic presentation so that you can learn from those people who have actually originated this work. Our SuperConferences are known as some of the greatest seminars per year. And now that we’re back on seminar schedule, after our COVID experience, you can come and you can learn from the very best in the profession.

I certainly hope you will, and you can run your scanner over that QR code. And it’ll take you right to a registration paid page for you to get into our SuperConference. Now, listen, everybody having a good coefficient of profitability is essentially if you’re gonna run a good practice, what the number is is up to you, but you must be profitable in order to be able to not only serve as many people as you want to, but also have something to show forward for yourself. So let’s do everything we possibly can to run great practices, make a lot of money and help as many people as we possibly can. This is Dr. Dennis Perman signing off of Thrive in Five. If you want to give us a call at The Masters Circle Global at 800-451-4514, it will be our pleasure to tell you more about our programs and to serve you have a wonderful week.

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