There are a number of factors to consider when answering this questions. For example, is this a new practice, a transition practice or a well established practice? Is this a general family practice, a cosmetic practice, or a practice that is moving more toward cosmetic/restorative services.

Startups: The average general dentist will require 700 active patient charts to productively support a 30 hour per week schedule. The average acquisition cost of a “quality” new patient ranges from $80 to $120. 700 new patients within the first year times an average acquisition cost puts the first year marketing budget at $70k. A “quality” new patient is any patient that matches or exceeds the average revenue per active patient that the dental office currently enjoys. Example Practice: $600k annual revenues, 1200 active patients, average revenue per active patient = $500. NOTE: Participating in an insurance programs is a marketing cost. The cost of the marketing is the difference between your normal fee and what they insurance company pays.

Existing practice: one that’s been in existence at the same location for greater than 5 years. Let’s also make the assumption that this is a general family practice. The marketing budget range. The range is 5% last years collections and 5% of the current year’s revenue goals. As an example, a $600k practice that has a goal of $700k should have a marketing budget range of $30k to $35k for the year.

Transitioning Ownership: Dentists who buy an existing practice can expect to lose at least 20% of the existing patient base. In addition, existing patients who do see the new owner will almost always slow down their purchases of dental services during the first 18 months of ownership. This is the “getting to know you phase” where trust much be built. This has to be factored into determining the total marketing budget.