3 Dangers of Discounting Your Dentistry

Discounting quite literally is devaluing the goods you sell, in order to entice a patient to schedule.  The danger is that it can create a permanent perception of lesser quality.

When you discount your dentistry, patients immediately begin to speculate why you've done so. Put your consumer hat on - we rarely assume that products or services are discounted for a good reason. We believe discounts happen because: the item did not sell well, a store is doing poorly, the seller is desperate, or the item is out of date or old.

Does this mean you should never discount?  No - but just be sure you're going about it the right way.  Oftentimes we see dentists discount their dentistry out of fear - they think that giving a discount on the fly will result in better acceptance. 

Here’s the reality… 

1. You are devaluing your dentistry -   When you discount treatment, your patients start to wonder what those items are actually worth, and why you wouldn't just charge that fee to begin with.

They might start thinking that your dentistry has always been of lesser quality and you are finally adjusting fees to reflect its' worth. This is a terrible brand conception to have. Another conclusion your patients might draw is that you have been quoting fees with really high profit margins and taking advantage of them. This perception might actually be worse.

2. You set unwanted expectations  When you offer a discount to your existing patients for no apparent reason, it sets an expectation. That expectation is that there will always be a discount. If you were willing to give a discount once your patients are betting you will do it again, and they almost force you to.

However, if you tie the discount to an action that benefits your practice (referring a friend) that's a different story.  You are rewarding loyal patients and their friends and family rather than enticing bargain shoppers.

When you offer a discount to new patients through external marketing, you are encouraging deal hunters to come to your practice. These patients are loyal to a good deal, not to your practice.   Once they receive the discount, they will move on to the next offer.  This unprofitable cycle results in a revolving back door. 

An exception is your New Patient ‘Special’ - We suggest that you charge one fee for your new patient visit – probably not more than $250.   The objective in this instance is to simplify the fee so that you don’t have to factor in all variables, ie: whether or not they have x-rays, fluoride, etc.  All of the different fees can potentially confuse and overwhelm your potential patient, becoming an obstacle.  

3. You could alienate your existing, loyal patient base.  No one wants to feel like they come second to someone else. Especially existing patients  that are excluded from 'special' offers.    This feeling usually stems from publicly offering discounts and offers to new patients only.

I'm sure your mailbox often looks like mine - full of  Valpak, community magazines and postcards from dentists with deeply-discounted offers.  The same could be said for social media - targeted ads and/or multiple posts with offers  for ‘new patients only’.

This is a very dangerous practice. Sure - you might be attracting patients that might otherwise go somewhere else (see #2), but is it worth it?   

If an existing patient sees a postcard in their mailbox with a 'free whitening' offer, or comes across a post on your instagram for a $99 cleaning in your practice, but sees that it's only available to new patients they may start to ask why their repeat business is not worth rewarding. This will cause some animosity towards your practice and could even cause that existing patient to go elsewhere. The problem is that existing patients are worth much more than the new ones you are trying to attract!

As an alternative to reactive discounting, try this...  Provide your patients value through addition, rather than subtraction.

Both promotions and discounts have a similar, two-fold goal: prompt the patient to take action and create urgency that motivates them to act right now.

But discounting leads with price and scoring a deal, whereas promotions (done well) lead with the value of your dentistry. There’s a big psychological difference for your patients, which means there’s a big difference for your reputation and revenue, too.

Basically, this means  that you should be giving your patients something for their loyalty rather than subtracting from the price of your dentistry. When you provide value through addition you eliminate the dangers of discounting presented above.

A gift or added value, unlike discounts, will not make patients question the value of your dentistry and certainly won't make them upset. Added value shows your patients that you appreciate their loyalty, while at the same time incentivizing them to schedule their dentistry, refer to you, and keep their time and financial commitments to your practice.