We came across an article in Entrepreneur Magazine called Quantity Versus Quantity.

A reader of the magazine wrote into the “What’s Your Problem?” section with an intriguing question.

“I own a film and production company, and I shot 100 videos last year-70 weddings and 30 corporate, totaling $330,000 in revenue. The corporate videos are more profitable, but weddings are always happening. I don’t want to turn off a constant source of revenue, but should I spend more time pursuing corporate events to grow my business?”

The expert in charge of responding to reader’s questions stated the question differently: “To grow sustainably, is it better to take on projects that are frequent and reliable, or sparse but lucrative?” His recommendation was that the reader answer some key questions before making an either or choice regarding how many and what type of event would make the business more profitable.

  1. Should you charge more for each video?
  2. How many clients did you turn down last year?
  3. Could you have taken them on if you had extra help?
  4. Can you maintain your current output while trimming production costs?

Conclusion: What makes the most money on a per-item basis is not necessarily what will make you the most profit in the long run.

We’ve said all of this before. Growth and sustainability in orthodontic practice comes down to a few simple principles:

  1. Commit to the price that will provide you with growth in volume – your results will let you know when you arrive at the correct price
  2. Modulate service to match your price
  3. Know your strengths and avoid your weaknesses – avoid things that don’t fit into your delivery model

This has nothing to do with quality, plain and simple. It is merely good business practice.

Marc Ackerman

Ben Burris