Cash Discount Calculator - Now Available!
In June, we discussed how offering a cash discount could actually boost your bottom line. (If you missed that post, you can read all about it here.)
Practices across the country reached out to learn more. Some wanted to offer longer no interest plans without paying more, some wanted to offer fair discounts to all patients, and others wanted to simply cover the cost of their financing fees.
To help these practices, we have created a Cash Discount Calculator. With this new tool, you can enter your procedure price, the plans you currently offer, and the plans you want to offer, in order to determine your needed cost and what type of discount you can afford to provide your patients.
To access the Cash Discount Calculator, select your specialty below:
By offering a cash discount, both you and your patients can save money, making everyone happy.
TO REACH A MEMBER OF THE ALPHAEON TEAM - ANYTIME
CALL 920-306-1794 OR EMAIL TEAMCREDIT@ALPHAEON.COM
How Offering A Cash Discount Could Actually Boost Your Bottom Line
If you're like most practices, there is a good chance that you have encountered at least one patient who asked for a discount. You also likely have met the patient that wants a longer term no interest plan that you don't offer. What if there was a way to make both of these patients happy and improve conversion ratios overall without costing you a penny more?
If you're like most practices, there is a good chance that you have encountered at least one patient who asked for a discount. You also likely have met the patient who wants a longer term no interest plan that you don't offer. What if could make both of these patients happy and improve conversion ratios overall, without costing you a penny more?
To start, you'll need to transition your practice to a Cash Discount Model. The goal of a Cash Discount Model is to provide an incentive for those who can pay in cash to do so and for those who can't pay in cash to be offered the most attractive patient financing options.
So, how does it work?
STEP 1: CALCULATE YOUR COST
Let's assume you're comfortable paying 3% of the loan cost for one of ALPHAEON CREDIT’S financing plans. After all, that is comparable to what most practices pay when accepting Visa or Mastercard.
But your patient wants to use a long-term no interest if paid in full plan which requires you to pay an 8% rate. If this is a financing option your competitors are offering, it only makes sense to
The cost for the plan is 8% to you, so your additional cost is only 5%.
Please note, at the plan prices used in this article are just examples. To get a copy of ALPHAEON CREDIT’s (excellent) rates, please email enroll@alphaeon.com.
STEP 2: ADJUST PRICING
Once you know how much offering the longer term plan will cost, you will add that cost to your overall prices. Most practices choose to round up to make the next step - offering a cash discount - easier to explain.
So in this scenario, it costs you 5% more to offer the plan, so you raise your prices across the board 5%. This raise will help cover the cost of patients who choose to finance, but should also save you money as you will see in the next step.
STEP 3: OFFER A CASH DISCOUNT
Now comes the best part - not only can you offer 12 month no interest to all patients, but you can also offer all patients who choose to pay cash a 5% discount.
This 5% discount may also save you money by converting those who would have elected to finance, but had the cash, to pay in full. Plus, it standardizes your discount policy and ensures patients who routinely ask for discounts, still feel like they are getting a deal without impacting your bottom line.
The last step is to promote the Cash Discount Model to your patients consistently and incorporate it into your existing financial policy.
To access the Cash Discount Calculator, select your specialty below:
TO REACH A MEMBER OF THE ALPHAEON TEAM - ANYTIME
CALL 920-306-1794 OR EMAIL TEAMCREDIT@ALPHAEON.COM