DISCOVER HOW COMMON INFLUENCES CAN AFFECT YOUR NUMBERS

SO OFTEN, clients ask me whether their “numbers” make sense. (I guess if you ask enough folks the same question, somebody will say, “yes.”) From my experience, very few of us review numbers through a period of time (aka trends) and relate how fluctuations, either positive or negative, that take place influence our businesses.

REVIEW THE NUMBERS

I want you to track, monthly, these specific metrics that are critical to the heartbeat of your business.

1. Net revenue per exam in the optical vs. the clinic. (Include both patient and third-party payments.)
2. Total net revenue for the optical vs. the clinic. (Include both patient and third-party payments.)
3. Staff and doctor hours in the optical vs. hours in the clinic. (You may have to allocate a percentage of time with folks who pinch hit in both areas.)
4. Staff and doctor payroll in the optical vs. the clinic. (Again, you may have to allocate a percentage of salary comparable to the percentage of time spent in each area.)
5. Total team hours vs. total hours open.
6. Number of new patients vs. existing patients.

For each, review through 12 months, and discern any trends. (At minimum, you want to review these numbers quarterly.) For Nos. 1 and 2, look, specifically, at cost of goods and payroll, as well as the other influences, see below. For Nos. 3 through 6, assess the influences. (Remember to think of this as a movie, and watch the action from scene to scene!)

COMMON INFLUENCES

Now, note which months the following influences took place to assess a direct correlation to your results.

1. New team members
2. Vacation schedule changes
3. Increase or decrease in patients by plan type
4. Weather events
5. New technologies added
6. Renovations
7. Adjustments in staff schedule to balance comprehensive exams per hour, and optical staff available. For example, if you are doing four comprehensive exams per hour with only one optician, he or she will not be able to handle the flow. (Note: These are just a few! I encourage you to email me your additions/experiences.)

AN EXAMPLE

For 2016, you may have seen 500 additional patients. (Great job!) Your previous revenue per exam in the same period last year may have been $450 and, now, it is $400. Why? A common root cause is failing to adjust your team’s scheduling to account for the additional patients. (Therefore, since your busy staff members did not have enough time to thoroughly discuss the wealth of optical options you offer, the patients were rushed out without the opportunity to purchase more.) Other influences: You may be seeing more patients who have lower compensating plans or you may not be current on your billing.

UNDERSTAND YOUR PROFIT

We all know time is money, and understanding trends within your business supports time and money management. Remember that it is not whether you can provide or sell a product but, more importantly, whether your expenses are aligned to support a consistent, profitable interaction. OM

MR. BINKOWITZ is president and CEO of Gateway Professional Network, a technology and business management services company. Mr. Binkowitz has extensive experience in retail operations, merchandising, marketing, manufacturing, distribution, technology development, national sales and on-site interactive consulting. Email him at AskJay@GatewayPN.com.