Set your practice up for growth this year and beyond
Key Takeaways
- In 2025, increase new patient acquisition through marketing.
- Lower down payments and offer flexible payment plans.
- Stay ahead of inflation by continuing to raise fees.
Deep breath in. Exhale. After a turbulent year that wrapped up with one of the most contentious election cycles in history, we could all use a cleansing breath or two.
Now, on to the task at hand. It’s time to take our annual look at what the dental industry could bring this year and how to position your practice for growth in 2025 and beyond.
Last year, Judson Crawford, CPA and Partner at CWA, used the term “cautiously optimistic” to describe the state of the economy and dental industry. With economic signs continuing to move in a positive direction this year, he’s upgrading the description to “cautiously confident.”
“The economy is in pretty good shape overall,” says Judson. “Inflation and interest rates are trending down, job growth, GDP, and consumer sentiment are trending up.”
Judson is quick to point out that consumers aren’t exactly feeling it in their day-to-day lives yet due to lingering inflationary pressures, but there does seem to be a light at the end of the tunnel for consumers.
“If you look solely at the economic and small business growth policies that the new administration is focused on, there are definitely things that can benefit both patients and practices.”
Policies like doubling the child tax credit from $2,500 to $5,000, and curbing taxes on overtime and on tips, if passed, would mean more cash in consumers’ pockets for cosmetic procedures, orthodonture and overdue cleanings.
“The story here is that economically we are poised for growth, and dental practice owners need to make sure they are prepared to take advantage it,” says Judson.
To do that, Judson recommends dentists focus on the fundamentals of their business, including marketing, increasing payment flexibility, and raising fees to keep up with inflation.
MAKING MARKETING A PRIORITY
New patient pools have dwindled since the stimulus-fueled surge from 2021 to 2023 across the dental industry. While CWA’s benchmark report shows that many practices did ramp up marketing efforts last year, Judson says there are still opportunities to increase new patient acquisition through marketing in 2025 and beyond.
“The competition for patients is only going to get more intense as the economy continues to improve,” says Judson. “Dentists who are not focusing on marketing are going to find it harder to grow.”
He says this doesn’t necessarily mean practices have to commit to high-spend marketing efforts. Maximizing your digital and social media platforms, parlaying your patients into referrals, optimizing local SEO, highlighting positive ratings and reviews, and marketing to referral doctors are all ways to keep your practice in front of existing and potential patients.
OFFERING PAYMENT FLEXIBILITY
With consumer confidence on the rise, Judson says dental practices have a unique opportunity to gain new patients by offering payment options that meet patients where they are. Prices at the grocery store are still high. Housing is still expensive. Practices need to give patients a reason to say “yes” to procedures, and offering flexible payment arrangements is key.
“Practices that are lowering down payments and offering flexibility through third-party financing arrangements are the ones that are winning in both patient acquisition and production,” says Judson.
Ensuring that front office or treatment coordinators are well-versed in talking patients through the details of flexible arrangements and financing is equally important. For more insights and advice on implementing a flexible payment structure, check out this article.
ALIGNING FEES TO INFLATION
A possible downside to some of the growth policies the new administration will target is an uptick in inflation. Increasing the child tax credit is essentially a stimulus. Raising tariffs often results in higher costs of goods. Judson recommends dental practice owners stay ahead of it by raising fees again in 2025.
“If we see that a lot of these policies start to put inflationary pressures back on the economy, we may see more of a steadying of rates than a series of cuts,” says Judson.
He expects inflation to remain at about 3% for the year, and fees should increase to reflect that.
“We can’t sit back and say, well, we’ve had some good fee increases the last few years, so we’re going to take a year off,” says Judson. “For practices to remain competitive hiring staff, retaining employees and buying supplies, they need to raise prices to absorb that.”
From a personal financial perspective, Judson recommends staying focused on the fundamentals with your investments as well.
“We’ve been through a period in the market where technology has been one of the largest areas of growth over the past couple of years, and that’s not the case right now,” says Judson. “It’s more important than ever to make sure you’re allocated across different asset classes.”
Between decreasing interest rates and a pro-growth president, Judson sees a boost in mid and small-cap businesses, as well as in the manufacturing and raw materials sectors. However, he warns that anytime there’s a leadership change in Washington, trying to bet on certain areas of the market is difficult at best. He recommends that both practice owners and associate dentists lean on a trusted advisor to help ensure proper diversification is proactively spread across their portfolios.
“I think from a broader perspective, we came a long way in 2024,” says Judson. “The soft landing happened, and now it’s time to go capitalize on that.”
For practice owners, that starts with focusing on new patient acquisition, finding ways to give patients payment flexibility, and keeping fees on pace with inflation.
Looking for a deeper dive into what we can expect to see in 2025? Check out this episode of the Accumulating Wealth podcast, hosted by Judson and fellow CWA partner Hunter Satterfield.
As always, CWA is standing by to answer any questions about your practice and personal financial goals. Contact our team today.
