That's Life: Survival of the Fittest
That's Life: Survival of the Fittest
It seems like the dental laboratory is always feeling the crunch and taking the hard hits in the dental industry. And once again, we only have ourselves to blame for pulling the roof down upon ourselves. Over the next couple issues I'd like to address a few examples. This month, I want to talk about digital impressions.
On Dentaltown recently, a dentist posted a topic related to digital impressions. He was asking if anybody had found laboratories offering significant discounts for these cases since they didn't have to do any model work. Nobody replied to the affirmative, however, more than one laboratory owner said that they did not charge their normal model work charge, because this task was being outsourced. I replied that we simply passed on the model work charge without a mark up.
My reply was not popular. Within minutes dentists were remarking how superior these models were to analog models, and that we were saving so much money because we we didn't have to do any of the following:
- No inbound shipping
- No infection control
- No border forming
- No mixing stone
- No pouring stone
- No pinning
- No sawing
- No trimming dies
- No articulating
Obviously, dentists have no idea what it costs to produce a model and based on the numbers of laboratories willing to eat the $20 charge, neither do many laboratories owners! Let's just look it this logically. Actual labor time is only six minutes. Material costs are about $3.80 with an articulator included. In order to pay $20 for a model, you'd you'd have to pay your model and die technician at least $80 per hour, and give away a plaster mounted, metal hinge artuculator with it!
I heard in Chicago that in five to 10 years, 40 percent of the work in the U.S. will be done offshore and 25 percent will be done on an in-operatory milling machine. Not suprisingly, as many as half the laboratories will be closed by then. If we look at this from Darwin's perspective, how would your laboratory come out? Evolved or extinct? Being able to make tough decisions about CAD/CAM and knowing how to price these products may very well decide your fate.
If the predators don't get you first. Who are they? I'll tell you next time.
