- Benefits of Outsourcing
- Dental outsourcing has been around for a few decades and it’s not going to go away. According to statistics from trade
associations and publications such as NADL and LMT, dental outsourcing has been snowballing in the past decade or so. Smart business owners have discovered the convenience of using outsourcing suppliers to grow their businesses. Some of the benefits of such practice can be summarized as follows:
- Outsourcing helps you become more versatile and competitive by offering a complete line of products, and at
lower prices if you want to. Some labs even introduce a second brand targeting insurance driven or price-sensitive dentists and their patients. Sales and incomes usually grow at no additional costs as a result.
- Outsourcing gives you a more flexible and affordable workforce. Seasonality is no longer a problem with Chinese
labs buffering your excess demand. Overtime costs are significantly reduced. You end up with a much happier group of technicians who can enjoy family dinners every night.
- Outsourcing greatly increases your capacity and helps you generate more sales with higher profit margins. With the
backing of our large, 500+ technicians, fully ISO-certified dental labs in China, you can greatly expand your sales territories while reducing overhead and labor costs.
- Your top technicians will also be happier because outsourcing frees them from the daily grinding of PFMs. It allows them to
focus on high end, high quality, and more challenging artworks that they enjoy. After all, isn’t that why you chose to be in this business?
- Outsourcing helps you boost the value of your business. When your sales increase, your company’s value will increase by
at least 3.5 to 4.5 times the additional net cash flow. A small shipment of only 100 PFMs to China a month, for example, will likely fetch more than $60,000 a year in NET income, which in turn is valued between $200,000 and $300,000 when the business is sold!
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