Should You Increase Your Membership Plan Fees?

As a dentist, one of your most important tasks each year is adjusting your fees. Whether it’s keeping up with inflation or managing rising operational costs, increasing fees is key to maintaining profitability. This is especially true when it comes to your dental membership plans! Should you increase your membership plan fees? Our answer is pretty much always yes, and here’s why.

Costs Are Rising—Time to Adjust

Dental practices are facing rising costs across the board:

• Supply prices are climbing higher than ever.
• Shipping delays for dental supplies are causing costly procedure delays.
• Finding and retaining skilled hygienists is tough, with competitive salaries.
• Post-pandemic, you’re spending more on cleaning, sterilization, and PPE.

All of these factors impact your bottom line, and adjusting your membership plan fees helps to keep revenue in line with these increased expenses.

But What About Losing Patients?

You might be thinking, “Won’t I lose patients?” Possibly, but fewer subscribers don’t necessarily mean less revenue. As DentalHQ’s founder, Dr. Brett Wells, explains, “You can increase your fees by 30%, and even if you lose 15% of your patients, you could still come out ahead due to the added profitability from the ones who stay.”

The key is to crunch the numbers first and communicate clearly with your patients. Transparency is everything when raising prices, and there are proven tactics to minimize subscriber loss.

How to Retain Subscribers During Price Increases

A Harvard Business Review article suggests being upfront about price increases rather than using vague phrases like “price adjustments.” Instead, say, “We’re increasing your membership plan fees, and here’s why.” Honesty builds trust, and explaining the reasons behind the increase can soften the blow.

A great way to justify the fee hike is by adding value to the plan. Consider including a low-cost service, like a teeth whitening procedure, that doesn’t significantly impact your overhead. By saying, “We’ve increased your membership fee, but now your plan includes an annual whitening,” you add value while maintaining profitability.

The Truth: Most Patients Expect Price Increases

You’re not the only business raising fees. Patients are used to seeing slight upticks in the services they use—just think about Netflix or Spotify. The general population expects this, especially if the increase is reasonable, like a few dollars a month or $20-$30 a year. Many DentalHQ practices have successfully raised their membership fees by up to $80 annually without seeing a significant drop in patient numbers.

Gradual Price Increases Are Your Friend

If you don’t raise your membership plan fees regularly, you risk needing a dramatic hike later. Patients are more likely to stay with you if you increase fees gradually, rather than waiting until a large increase is necessary. Don’t wait until you’re forced to raise fees by 70% in one go—smaller, regular increases are easier for patients to handle and for your practice to manage.

Should You Increase Your Membership Plan Fees? Absolutely!

Here’s a quick recap:

• Costs are rising, so you should raise fees to keep revenue in line.
• Losing a few patients won’t hurt profitability if your pricing is right.
• Most patients expect small price increases.
• Gradual fee increases are easier for patients to accept.

If you’re feeling uncertain about adjusting your membership plan fees, we’re here to help. The DentalHQ team can guide you through every step of the process, including when it’s time to raise your prices. Our platform makes managing membership plans simple and effective, and our financial experts are ready to assist. Get in touch with us at hq@dentalhq.com, or schedule a demo today to learn more.