Questions

How to improve cash flow in a dental lab?

Dentists are our main clients and they are difficult to collect from , they also get offended easy about collections

3answers

What is it you do exactly for your clients (dentist)?


Answered 6 years ago

So you do lab work for dentists? If you post your website or some other info it might be easier to help you with the issue.

If you want to improve cash flow you can either reduce expenses or grow revenue. My experience is that it is usually way easier to grow revenue since expenses are so thin for companies like yours unless you have wasteful habits.

Figure out who your ideal customer is and develop a marketing plan. Make sure the marketing plan uses multiple marketing medians to get brand recognition with the target market. Follow up with phone calls and offer test orders or test lab work. Make sure you can demonstrate a clear advantage to working with you compared to others.

Any clients you work with should respect your professionalism to sign an agreement with their orders to pay within a specified time frame. The agreement might also clearly spell out how the collections process works. Get signatures on orders, if they can order online include info like this in your TOS.


Answered 6 years ago

Reorganize your invoice so instead of the traditional 'penalty' for late payment you offer an incentive for early payment. Same values, reverse labels.

You should also look at automating reminders for payment after a certain date. This should be relatively straight forward depending on the accounting system you are using.

I've provided similar automation solutions for a number of clients and would be open to discuss in more detail if you would like to schedule a call.


Answered 6 years ago

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