The Pre-Payment Courtesy
A win/win payment solution

Gary Takacs

Gary's passion is helping dentists develop a more profitable and enjoyable practice. He has more than 20 years of experience coaching dental offices to achieve higher levels of success. Gary is a frequent speaker at dental society meetings, study clubs, and other educational forums. His presentations are designed for the entire team and he guarantees your office will have a great time and will learn a great deal that can be immediately applied to strengthen your practice. For information about Gary's popular videotape program, "Getting Paid: New Strategies for Changing Times," or about having Gary speak to your group, please contact him at
(480) 951-1652
or e-mail garytakacs@prodigy.net.

In an ideal world, patients would pay for their dental care in advance. Well, the world may not be ideal but there's a technique that can help motivate your patients to pay for their care in advance - pre-pay incentives. I have found that a 5% discount is the incentive that works best. Here are a few things I've learned about this concept.

First, don't call it a "discount." The word "discount" often conjures up images of cheapness and I think we need to be careful about conveying this message in a dental office. Instead, I suggest using the words "pre-payment courtesy." I have done tests of different percentages (5%, 6%, 8%, and 10%) and the results have shown that you will get the same response at 5% as compared to the higher percentages. My conclusion is that 5% is enough motivation and by discounting more than 5%, you are giving away more than necessary.

Here's an example of what your Financial Coordinator can do to present this concept to patients: "Mrs. Jones, I understand Dr. Smith has suggested a crown for the tooth that is giving you trouble. We're looking forward to getting that taken care of for you. Let me cover a couple of details with you so there are no surprises. The fee for the crown is $700. If you would like to pay for that today, I'd be happy to offer you a 5% pre-payment courtesy. That would be a savings of $35. Would you like to take care of that today and take advantage of the savings?"

However, I understand that this will not work every time. But, you will be surprised how often it works when presented in this manner. The key is to tell the patient exactly how much they will save. Five percent is hard for people to comprehend, but when you tell them the exact dollar amount it seems to register. Also, please note that these savings are offered to patients for payment in full at the exam appointment. It doesn't apply to payment at time of service, but rather is used for payment in advance.

In addition to the financial benefits of receiving payment in advance, you will also gain the benefit of fewer cancellations and no-shows. People keep appointments when they have already paid for them! Consider the pre-payment courtesy an excellent means of motivating your patients to pay for their care in advance.