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Dental practice Price Increase Impact: worked example

Compare revenue after a price increase and assumed volume loss.

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Dental practice / appointment economics
Answer

With the illustrative inputs below, the result is 20,900 per month. Baseline revenue: 20000

Try this with your own numbers

Formula and worked example

New revenue = price × (1 + increase) × volume × (1 − volume loss)

Example figures
InputExample
Current price100
Price increase10 %
Current monthly sales200
Expected sales volume loss5 %
Calculated result20,900 per month

Baseline revenue: 20000

Choose reliable inputs

Allow time for preparation, the service itself and cleaning up before the next appointment. For this dental practice calculation, use appointment history, service durations and supply costs and a consistent definition of one appointment.

  • Clinical labour: include the portion belonging to this appointment or reporting period, and record where the value came from.
  • Supplies: include the portion belonging to this appointment or reporting period, and record where the value came from.
  • Room overhead: include the portion belonging to this appointment or reporting period, and record where the value came from.

Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.

Does raising prices always raise revenue?

A sufficient volume decline can offset the higher price. Compare contribution as well as revenue before deciding.

Volume loss is your assumption, not a demand forecast; costs are excluded.

Compare a different assumption

What if this input changes?

If current price rises by 10%, this example changes by 2,090 per month. This shows the effect of one change; it does not predict what will happen.

Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.

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