Competitive Lease Rates in 2010

We have all heard about and/or been impacted by the downturn in the residential housing market, but a quiet downturn in the commercial market has also been occurring. With the downturn suites have been vacated as business downsize, are bought-out, or go out of business. And, with more vacant suites and buildings on the market than in many years, lease rates are highly competitive in virtually every market except  the Rust Belt (North and South Dakota, Colorado, etc.) which haven't been impacted significantly by the Great Recession.

If you haven't taken a look at your lease recently study it now while the market is low, especially if your lease is coming up for renewal in the next few years! Then contact a commercial  leasing agent to open those discussions and rework your lease now! Also, do not negotiate your own lease unless you're the building owner... Leasing for your office is as emotional as buying a home and using an agent for  home purchases is the gold standard. An agent will dot the "i's" and cross the "t's" - plus they're savvy on the rates for the building Class and the type of lease you have. In some cases your agent may need to educate your landlord about the market in their area and, if they aren't willing to renegotiate to a lower lease rate than ask for a Tenant Improvement allowance instead. Then use those funds to make small, appropriate updates to your office like new carpet, vinyl floors, wall covering and paint. Keeping your interior looking stylistically current with well maintained materials is the key to continuing to keeping your practice fresh for current patients while attracting new ones.

Either way, the savings or updated interior will be yours and that is money in the bank!

Affordable Updates. Amazing Results.

So often we are contacted by dentists whose offices are in need of an update but the concern for lost production and income during any level of renovation has stopped them cold. Rightfully so, but inaccurate! The key to having a successful operational renovation is working  with a detailed dental office designer and planner (that would be us, of course) and a knowledgeable and experienced dental contractor. Depending upon the size of the physical office and the scope of the work to be completed, a full closure is usually unnecessary. especially when combined with a motivated Doctor and team.  Whew, now there is cash flow to pay for the updates!

The office pictured here for Drs. Victor Barry and Micheal Mulick in Seattle, WA is case and point. From the picture here (or on our website) you can see the actual physical changes were minimal - while the change to the visual impact was significant. With new carpet, paint, dark stain, and artwork their reception area was transformed into a sophisticated entry for their practice and other updates carry the theme through the office.

Here's how this works. In the same way dentists start with a new patient interview, an exam, x-rays, and treatment planning before  treatment, so does our team. However, we call those steps programming, inventory, as-built measurements, and space planning. With the dentist we determine what the practice's office design and functionality needs are, what the desired outcome is, and-of course-what the budget is. Then we complete a detailed questionnaire, measure and photograph the office and dental equipment, and "as-built" measure the entire office or just the areas to be updated. This process creates the "records" for our "treatment planning" to be built upon.

Then the fun starts! Functional space planning (the dental treatment plan) begins to correct poorly functioning key areas such as sterilization, the business office or lab. The existing equipment from the inventory and any new equipment to be purchased are integrated into the planning so everything flows smoothly. Then color schemes are developed that include new carpet and other flooring, fabrics, wall covering, and paint to blend with any existing materials that need to remain to stay on budget. The dental office space plan or plans are presented to the dentist and team for review and, if needed, further refinements are made. The color and materials schemes are presented next and narrowed to one final option with a lot of happy smiles, a few "woo hoos"  from  the team), and conversation about just how great this will look!

The next step is accurately and completely illustrating the functional and colors updates in detailed drawings (your lab prep). The drawings reflect existing power, data, telephones, lighting, and walls, etc. to remain, plus any added needs. They show the new functional planning and design updates needed to modify the existing office. This process is just like sending your patient out to your specialists as part of your treatment plan before you can begin your care. Working "updates" into an existing office is just like preparing for an implant, braces, or long term health of a mouth. It takes foresight and knowledge, planning, careful execution with specialists. Most importantly a "patient" that understands the value of comprehensive treatment and the investment it takes in the short term for great outcomes that pay for the long term growth and success of the practice!

2009 Business Loss? Recoup the loss from 2007 tax payments!

As the economy slowly recovers some businesses are studying the effects of 2009 on their bottom line. Ideally your practice experienced year-over-year gains but, if you had a loss last year and it flows through to you as a sole proprietor, S-Corp, or partnership, take a few minutes to read this article from CNN Money. At a minimum it's worth a call to your accountant...

Nice Office Environments Improve Team Happiness

This article on  "Happiness is good health" is great! Perhaps with just a little too much attitude but the knowledge gained from the study is still the same. Offices that are designed well and look good pay the business owner back in increased productivity, a happier team, and ultimately - which isn't even touched on here - happier patients.

Scroll down to my April 21, 2009 "Economic Reality..." entry and you can see the outcome of updating the aesthetics at Dr. Robert Spreen's office in Bellevue, WA in the after (upper) and before (lower) photographs. There are no "construction" changes other than new cabinetry, finishes, and furnishings.

Update your office and reap the returns of an investment well made...now, that IS something to consider!

Easy Tips for Practice Growth in Tough Times

Carol Tekavec, CDA, RDH, is the president of Stepping Stones to Success and her May 12th Dental Economics "Expert" Tips and Tricks has 8 great ideas for ensuring your dental practice continues to thrive. http://www.dentaleconomics.com/articles/article_display.html?id=361794&cmpid=EnlDentalTipsTricksMay122009
I would add three more tips: clean, maintain, and organize your office.

1. Maintain: Starting outside your building or in the building hallway entering your suite, look at the maintenance and ensure everything looks fresh outside and inside. Do touch up painting, repair any broken items or replace if too old and looking shabby.
2. Clean: If your carpets haven't been cleaned and vinyl floors stripped, cleaned, and resealed in two years it is PAST DUE. (Note: this is not the cleaning your team or janitor do weekly.) Patients are likely seeing the lack of detail while they wait in your reception area or operatory, this will effect your bottom line.
3. Organize: One place to start is getting the "things" that are stacked on the counters put away, where ever possible, to eliminate a dirty and disorganized appearance. The view below, before reorganizing, is fully visible to patients. Go through your office room-by-room and "see" what your patients see, then purge the counters. Once the counters are clean, look at open kneeholes-just like in the picture. Patients at the payment area can see the mess under the desk.
   

How will this keep you growing? Poorly maintained, unclean, and disorganized dental offices look unprofessional and reflect on the dentist's care. Patients are paying for a professional and these are very people who will be keeping your income at 2008 levels or growing them in 2009. Yes, really-growing them! How? Patients have a choice of where to spend their limited dental dollars and a well maintained, clean, and organized office will rise above the alternative. Give your current patients and potential patients incentive to come to your office-provide an environment they will feel comfortable in.

Economic REALITY in the dental industry...and it is a GOOD reality!

Top photo: AFTER mini-renovation
Right photo: Before renovation
Office of Robert Spreen, DDS; Bellevue, WA

It is time to get some positive information out on the dental industry because it is out there and we don't hear enough about it. In conversations with our dental clients again and again I hear how strong their earnings are, and even growing in this challenging economy. Comparison of their 2008 to 2007 income was strong and their 2009 year-to-date income against previous years looks good too. And, while orthodontic and prosthedontic practices are experiencing the impact of discretionary spending cuts our oral surgery, endodontic, and general dentistry practices are doing well, really well, and nearly without exception. And THAT is the REALITY!

These positive financial results are not accidental. The common thread between all of our client’s practices is that they invested in their office, in moderate ways, to create optimal functionality for their staff and a patient friendly aesthetic design. Their investments have ranged from micro-remodels (new carpet and paint), to mini-remodels (renovation of a poorly functioning room along with office finish updates) and even phased, operational renovations on a larger scale.

Does this really matter? Yes it does-because dental patient’s have a choice. Frequently practice-to-practice cost comparisons yield only a small difference in prices. So when a patient is investing their dental dollars, why not choose a nicer, nearby, up-to-date office and have a great experience if the cost difference is negligible? A fresh, current design with comfortable seating, warm colors, and an overall clean and organized appearance to the office makes a huge difference in the patient’s perception of a dental practice. And our client’s are utilizing their offices to attract new patients and enhance their existing patient’s experience in their office. The outcome? A return on investment they are literally taking to the bank!

If the financial situation in your practice is a declining then this is a great time to objectively evaluate your competitor’s offices and see where you stand. Is it time to differentiate yourself by improving your practice's environment in small, cost effective ways? While the overall economy is out of your control, your investment in your practice is one area you can control and gain a 20-30% return on your investment. Now, isn’t that is a much better reality?

Lighting Color Rendering for Dentistry

There is one other nugget of knowledge to add to lighting for dental offices (see March 12^th posting). Accurate color rendering is critical in dentistry. Whether placing a single crown or numerous veneers the goal is blend between the new and existing. The Color Rendering Index (CRI) of the fluorescent lighting in a dental operatory is critical to the success of your color matching!

In the operatory using a lamp with a CRI of 5500 degrees Kelvin creates the best “daylight” rendering available for color matching. To my knowledge Duro-Test is only manufacturer with a 5500 K lamp known as the “Vita-Lite” lamp. The lamp comes in 4’ lengths both with T-8 (energy efficient) and T-12 (non-efficient) sizes and replaces standard fluorescent lamping in your operatory troffers. (Note: Only troffers with T-8 electronic ballasts can efficiently run the T-8 lamps.)

But wait! Impact the light quality in the rest of your office by relamping other existing fluorescent fixtures with 3500 degree Kelvin lamps. They come in all sorts of types and sizes and enhance and warm the interior colors in your office while creating natural, healthy looking skin tones! No more unhealthy greenish cast from those 2700 degree Kelvin lamps.

So, where does one find these lamps?

• In Seattle our Home Depot stores stock 4’ long 3500 K fluorescent lamps.
• Or, you can order any lamp type through Pacific Lamps (206) 767-5334; they ship by UPS anywhere in the country.
• For Duro-Test, order direct at 800-289-3876 or http://www.duro-test.com

Still not sure? Call me at 206-706-2820 or email me pictures of your practice’s lighting at Janice@SEIseattle.com and I will point you in the right direction!