Exploring how much to charge for laser therapy, considering profitability and value. Introducing a calculator for price optimization. Calculating the profitability and bottom line price for laser treatments. Factors that contribute to the value of laser therapy units. Determining appropriate treatment price for medical practices.
Determining the minimum treatment price for laser therapy sessions ensures that costs are covered and provides a 10% profit margin.
Calculating the value of laser therapy helps set treatment prices that align with its worth and provide a satisfactory return on investment.
Deep dives
Determining the Minimum Treatment Price
The podcast discusses the importance of determining the minimum treatment price for laser therapy sessions. The calculator takes into account factors such as the cost of the laser unit, financing terms, staff members, treatment duration, and overhead expenses to ensure that the treatment price covers the costs and provides a minimum 10% profit margin. This minimum price serves as a benchmark to avoid losing money on laser therapy treatments.
Calculating the Value of Laser Therapy
The podcast highlights the significance of calculating the value of laser therapy in setting the appropriate treatment prices. Factors such as the quality and reliability of the laser unit, scarcity of laser therapy services in the community, and the provider's expertise contribute to the treatment's overall value. By quantifying the value, providers can ensure that the treatment prices align with its worth and provide a satisfactory return on investment.
Determining the Weighted Average Price
The podcast introduces the concept of the weighted average price, which takes into account patient demographics, insurance coverage, self-pay options, and bundle packages. By considering these variables, the calculator generates a price range that factors in profitability, treatment value, and the preferences of different patient groups. The weighted average price serves as a practical benchmark that balances profitability and affordability to ensure sustainable revenue for the laser therapy practice.
This is the second part of the Business Considerations Podcast Series. We will be answering one of the most asked questions, "How much should I charge for laser therapy?" To determine the appropriate price point, we will be looking at the variables used in the LTI Return on Investment Calculator to balance the two main factors when considering pricing: profitability and value. These variables include cash outflows and the cash inflows, the expenses, and the income to determine the net present value today, as well as an internal rate of return and profit index.