We are a group of Dental Consultants who offer, improved practice morale; a happier, more profitable patient base;and improved home life; increased collections. (And yes, our average is 35% in year one.)

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Wednesday, June 20, 2012

A Lesson Learned, "Nathan's Hot Dogs" How pricing affects your bottomline


Photo by: Nathan's Hot Dogs
Photo from: http://nathansfamous.com/PageFetch/getpage.php?pgid=39


You might be asking what can we learn in the dental field from a story about a man who sold hot dogs? Well a lot actually.

A History on "Nathan's Hot Dogs
 
"It started in 1916 as a small hot dog stand on Coney Island.  Nathan wanted to undercut the competition and so he sold his hot dogs for 5 cents.  However, according to an excerpt from Sway, by brothers Ori and Rom Brafman, no one bought them because they didn't believe in the quality of the product.  "People believed there must be something wrong with them if he was willing to sell them so cheap."

How does this affect you in the dental office?  Finding the right balance when pricing your product can be tricky, because we aren't talking about a tangible product that people can feel and taste.  We are talking about experience and education, dental supplies, time, and relationships.   

You don't want to have your business prices too low, because you may wind up with no one to sell to, however, if your prices are too high patients may not be able to afford your product.  How much are your services worth? How much you should charge? Does the market always determine your worth?

Nathan's products did so well because he was serving a quality product.  In a world where hundreds of dentists exist and people could go anywhere it is important each interaction and every procedure with your patients is truly a quality product with nothing but the best inside.  His product was a unique recipe and he believed in this product so much it did not deter him from his pricing choices.

Everyone has a product to sell and they must believe in themselves, their office, and the job they are doing.  However, a quality product must be delivered every time for patients to believe in your services.  Nathan didn't need to sell his hot dogs for only five cents, because others were selling theirs for ten cents, but his quality product trumped the believe that his hot dog's weren't as good as the competitions'.

Today, Nathan's is famous and many individuals such as, "Al Capone, Eddie Cantor, Jimmy Durante, and Cary Grant ate his hot dogs.Last year there were over 360 million Nathan’s Famous Hot Dogs sold! Today,Nathan’s is sold and enjoyed in all 50 States and sold at over 20,000 foodservice and retail outlets."   

Although, you may never have anyone famous come into your office and buy your services, the product you produce each day matters to the patients you have now.

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Original Lesson By: Lenora Milligan Salt DPM President and Consultant

You can learn more about Nathan's Hot Dogs at http://nathansfamous.com/PageFetch/getpage.php?pgid=39





2 comments:

  1. That's quite a story about Nathan's! It's important to be the best you can be. It will pay off sooner or later. Thanks for your visit and have a wonderful day.

    Blessings,
    Sandi

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    Replies
    1. I agree it is important to know what your product is worth. Thanks for stopping by.

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