From Overheads to Opportunities: Turning Fixed Costs into Profit Drivers

In most dental practices, fixed costs — rent, rates, utilities, insurance — are seen as unavoidable expenses. They keep the lights on and the doors open, but they’re often treated as “just another bill to pay.”

The most profitable practices try to see things differently. They actively manage their overheads to create competitive advantages and even new revenue opportunities.

1. Review and Renegotiate Regularly

Fixed costs aren’t set in stone. Many practices lock into long-term contracts and never review them again. Utilities, equipment leases, and insurance policies can often be renegotiated or switched for better rates.

Example:
A £500/month saving on premises costs adds £6,000 to your annual profit — without seeing a single extra patient.

2. Make Your Space Work Harder

Your premises are one of your biggest expenses. Instead of thinking of it purely as a cost, ask: “How can this space generate more revenue?”

Ideas include:

Renting a surgery to a visiting specialist on unused days.
Hosting CPD events for local dentists.
Offering chair time to hygienists or therapists on a percentage split.

3. Invest in Efficiency-Boosting Upgrades

Some overheads can be reduced by making targeted investments.

Energy-efficient lighting and equipment cut utility bills over time.
Digital processes reduce paper, printing, and postage costs.
Cloud-based phone systems lower call costs and make patient communication easier.

These improvements save money month after month — and often improve the patient experience.

4. Turn Staff-Related Overheads into Growth

Staff wages are a major fixed cost, but they can be profit drivers when linked to productivity and service expansion. Upskilling team members to deliver new treatments, take on additional responsibilities, or improve patient conversion rates can generate a strong return on the same wage bill.

Hands down the single most important for increasing both revenue and profits.

5. Monitor Overhead Ratio as a KPI

Track your total fixed costs as a percentage of revenue each month.
- If the percentage is creeping up, review each category to identify why.
- Compare to industry benchmarks so you know if you’re over-spending.
Even a 2–3% improvement in your overhead ratio can translate into tens of thousands of pounds over a year.

The Takeaway

Fixed costs will always be part of running a dental practice — but they don’t have to be a drag on your profits. By reviewing, renegotiating, and finding ways to make each pound work harder, you can turn overheads into genuine growth opportunities.

Action Step:
Pick one fixed cost from your last month’s accounts and ask: “Can I renegotiate this, reduce it, or make it generate more revenue?” Take action within the next 30 days.