Why discounts don’t work

Some time ago I was interstate.

I noticed that there were advertisements on the back of buses for discounted or even “free” dental services.

Free check up and x-rays for new patients.

Free cleaning with all new patient check-ups.

50% off your first visit to XYZ dental clinic.

I’m going to give you four reasons why I think it is a very bad idea to discount your services.

1. It attracts the wrong type of patients
   When I visited one of these discount clinics I found many of the patients who came in for treatment were ultra price sensitive. For example, they frequently refused necessary x-rays because “I had some done a while ago.” (i.e. 10 years ago.)

2. It scares away the right type of patients
   I asked a friend who lives locally to the discount clinics if they would consider going there for their treatment. Their firm answer was: “No! I’d rather pay and get it done right.” Good patients often perceive discount clinics as being low quality.

3. It annoys your existing patients
   Every practice has good, loyal regular patients. If anyone deserves a discount or reward it is your regulars. These regulars often get annoyed by you offering new patients discounts: “Why are you giving these newbies a discount and I miss out?”

4. It makes patients skeptical about your fees
   If you can discount one fee, then why can’t you discount others? The message that discounting sends is that your fees are arbitrary and malleable. Next thing you know patients are regularly asking for discounts on your crown fees.

My suggestion is to set your fees at a good, honest, fair level then stick to them.

If you need more new patients, discounting is not the answer.