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Average Business Transaction

 

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     I would like to give a brief description here of a typical transaction for this business.  An average business transaction would be an office manager or a hygienist would call you to let you know they had a handpiece or several handpieces to be picked up for repair.  Then, they would leave them for you at the front desk to be picked up.  It depends on the office, some offices will call you when they have one handpiece to be repaired, and some offices will wait until they have three, four, or five handpieces to be repaired.  Also, unless it is a very small office, most dentists have delegated the handpiece responsibility to an office manager or a hygienist. 

 

     You would pick up the handpieces with the receptionist, and bring them back home for repair.  I normally repair my handpieces in the afternoon.  To repair the handpieces we take them completely apart, repair the motors/turbines by changing out bearings, orings, gaskets, and spindles chucks, clean and polish the handpieces, then complete some tests on the handpieces to make sure they run like new again. 

 

     The next day, we would make an invoice and call the customer with the invoice totals.  The customer would either pay with a check or credit card.  If they were going to pay with a credit card, we would take the credit card number over the telephone, and we would print the credit card receipt, and staple it to the invoice.  Then, in addition to the handpiece and invoice, we would take a few additional items out to the doctor's office.  The first would be a Service Requested Form, which is a form the next time they have handpieces to be repaired, the customer can put the make, model, serial number, and problem encountered with the handpiece along with the dentist's name and address.  Secondly, we would bring a one page maintenance form which gives the customer tips on lubrication and handling in the office.  And, then we would give the customer various goodies or freebies such as logo ink pens, logo note pads for their desks, rolodex cards, candies, and various other small freebies. 

 

     At the office, the customer would have a check ready or would sign the credit card slip.  This was a simple description of an average transaction.  Over time, we would sell some dental handpieces, and other items such as disposable prophys.  In addition, over time, we would sell and repair various other small equipment for our dental accounts.  However, the above was a good description of an average transaction.  You can follow the links below to see a break down of the prices and costs of some dental handpiece repairs.

 

Please, click the links below for more information...

 

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Highspeed Handpiece Repair Profits/Costs

Most common repair for this business, about 70% of the total number of repairs.  The highspeed handpieces are used for drilling, and break down about twice a year.  You can pick up about 10-15 handpieces per day.  Dentists will have about 10 handpieces per chair or station including highspeed, lowspeeds and attachments.

                                                        Pushbuttons             Standards   

Retail Price                                 $249 to $349            $129 to $149   

Parts Costs                                -($35 to  $75)           -($12 to  $24)   

Gross Margin/Profit                      $235 to $275           $117 to $125    

(Parts Costs-COGS)            

 

Labor Time        Average  Highspeed Repair time       20 minutes

Level of Difficulty              rating-star-small-gold-v0002.gif rating-star-small-gold-v0002.gif                      rating-star-small-gold-v0002.gif

 

 

*Dentists will have about 10 handpieces per chair or station including highspeed, lowspeeds, and attachments.

**The level of difficulty rating is * = easy, **= medium difficulty, ***=more challenging.

 

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Lowspeed Handpiece Repair Profits/Costs

The second most common repair in this business, about 25% of the total number of repairs.  The lowspeed handpieces are used for buffing, polishing and some drilling.  They break down about every nine months.  You can pick up about 10-15 handpieces per day.  Dentists will have about 10 handpieces per chair or station including highspeed, lowspeeds, and attachments.

 

 

Retail Price

 

$199  to  $399

 

Parts Costs

-($20  to  $165)

 

Gross Margin/Profit

(Parts Costs/COGS)

$179  to  $234

 

 

Labor Time                                        45 minutes

         Level of Difficulty                                      rating-star-small-gold-v0002.gif  rating-star-small-gold-v0002.gif  rating-star-small-gold-v0002.gif                       

 

*Dentists will have about 10 handpieces per chair or station including highspeed, lowspeeds, and attachments.

**The level of difficulty rating is = easy, = medium difficulty, =more challenging.

 

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Ultra-Sonic Scaler Repair Profits/Costs

A small segment of the repair business, but a quick and profitable repair.  About 5% of the total number of repairs.  The ultra-sonic scaler handpieces are used for scraping and break down about once a year.

 

 

Retail Price

 

$129  to  $149

 

Parts Costs

-($4  to  $20)

 

Gross Margin/Profit

(Parts Costs/COGS)

$125  to  $129

 

 

Labor Time                                        20 minutes

         Level of Difficulty                                        rating-star-small-gold-v0002.gif                         

 

*Dentists will have about 10 handpieces per chair or station including highspeed, lowspeeds, and attachments.

**The level of difficulty rating is *= easy, **= medium difficulty, ***=more challenging.

 

 

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COT's(Clean, Oil, & Tests) Repair Profits

 

This a small part of the repair business.  COT charges are most common on low speed models.  The charge is basically a bench fee for the amount of time it takes to test, then clean the handpiece, and re-test the handpiece.  While cleaning the handpiece, during a COT we may change out some o-rings and gaskets.  Sometimes a handpiece, particularly a lowspeed may have good bearings, however, the handpiece needs a general cleaning to operate correctly.

 

 

Highspeeds

 

Low Speeds

 

Nosecones

 

Retail Price

 

$52

 

$52 to $199

 

$52 to $159

 

Parts Costs

 

-($0 to $1)

 

-($0 to $1)

 

-($0 to $1)

 

Gross Margin/Profit

(Parts Costs/COGS)

 

 

$51 to $52

 

$199 to $51

 

$159 to $51

 

 

Labor Time                                        45 minutes

  Level of Difficulty             rating-star-small-gold-v0002.gif                  rating-star-small-gold-v0002.gifrating-star-small-gold-v0002.gif                        rating-star-small-gold-v0002.gifrating-star-small-gold-v0002.gif                       

 

 

*Dentists will have about 10 handpieces per chair or station including highspeed, lowspeeds, and attachments. 

**The level of difficulty rating is *= easy, **= medium difficulty, ***=more challenging.

 

Additional Services:

  • Small Equipment Sales & Repair
  • Disposables Sales
    • Prophys
    • Gloves
    • Lubricants
    • Burs
  • Handpiece Sales
  • Large Equipment Sales-Chairs, Etc.
  • Lubrication System Sales

 

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Orion Dental Sales, Training & Repair...a real home based business that can provide a good income while working from home.  A new business start up package that can help you be a successful home based business owner.

 

            • Compare us to the rest.  Then, come to the best.
            • We are the recognized worldwide premier source for handpiece training.
            • We are the world's largest supplier of dental handpiece training.
            • Some of those offering training now on the Internet, we trained only a few years ago.
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Here are a few of our past students...

 

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