ROI in Detail

Scenario 1

1 Practitioner making 100 appointments/month

Cost of No Shows = Approx. 10% of appoints                                                                                       TOTAL = $1,750.00

• Direct cost = $100 x 10 = $1,000, lost revenue
• Indirect cost of not filling the time slot with a replacement (75%) or rejecting a client because all appointments full = $750

Cost of SMS reminders                                                                                                                                 TOTAL = $102.50

• For 100 appointments at $0.25 = $2.50
• Time it takes to email 100 clients yourself = 1 hours. At $100/hour = $100

Cost of Generating and Emailing Invoice                                                                                                 TOTAL = $300.00

• Time to generate and email invoices to 100 clients yourself = 3 hours. At $100/hour = $300

Cost of sending appointment Confirmation                                                                                           TOTAL = $350.00

• Time to email confirmations to 100 clients yourself = 3.5 hours. At $100/hour = $350

Cost of generating reports on all aspects of your business activities                                        TOTAL = $600.00

• Time it takes to enter data and generate reports each month = 6 hours. At $100/hour = $600

Cost of SMS & Email Marketing Campaign each month                                                                    TOTAL = $300.00

• Cost of sending data to consultancy firm and having them set up and administer campaign = $100
• Cost of Campaign = $200

Cost of Meeting & Introducing your business to other related health professionals                 TOTAL = $250.00

• Travel time, preparing marketing/media kit, making appointment, emailing and calling. Meeting 2/month and allocating at least 1 hour work for each =2 hours. At $100/hour = $200
• Cost of joining Local Business Group = $50 month.
• Able to do this quickly and efficiently for FREE, via PM 24/7’s Practitioner Referral Network

Cost of producing Monthly BAS                                                                                                                    TOTAL = $618.00

• Time to collate all income and expenses data, 2 hours at $100/hour = $200
• Cost of Bookkeeper = $198
• Cost of Accountant to produce and lodge $220

Cost of Telephone and Reception Costs                                                                                                    TOTAL = $3,720 – $5,620 

• Line Rental and Call costs based on 100 appointments = $120
• Receptionist full time = $5,500 OR Reception (Call centre) = $3,600 at $15/hour

Cost of Missing/Forgetting to invoice and/or chase up Non Payment                                              TOTAL = $200.00

• 2 appointment invoices missed or forgotten to be chased up per month

GRAND TOTALS PER MONTH = $4,470.50 (Average of 100 clients/month – no receptionist)

$1,117.63 for 25 clients/month

$9,020.50 with a full time receptionist

 

Scenario 2

Group Training – 1 x practitioner running 3 group classes per day, with 15 clients in each group.

E.g. Personal Trainer running a Boot Camp. That’s 6 groups training 3 times per week, 15 in each group. Therefore; 90 clients X 3 sessions/ week. (270 appoints x 6 weeks = 1,620)

 

 

Dumb thing practitioners have said…

Video with comments from Accountants, Business Coaches, Teachers, Bank Managers, Insurance Brokers, Lawyers, Clients, etc. intermixed with text “quotes” that randomly come up on the screen. Relate all comments to the points above (that we cannot get a direct $ cost for).

• David Pittorino + Other (Accountants)
• Rebecca Levy + Other (Business Coaches)
• Julie Laycock, Damien McRae + Other (Bank Manager)
• More…

Relate to:

• Cost of writing up repeating appointments in a diary? Cost of losing that diary or leaving it on the car when you drive off?
• Cost of not having access to client and business details when you need it, out of the office?
• Cost of not knowing who your most valuable clients are?
• Cost of Computer dying or you losing your laptop (non-cloud record keeping and security)
• Cost of not knowing exactly who owes you money?
• Cost of not knowing exactly how every one of your clients got to you?
• Cost of not knowing exactly how many appointments, revenue and no shows an individual has completed?
• Cost of not being able to look up every transaction an individual has made and the filter based on date, service, location, payment method, money outstanding, products purchased and who referred them?
• Cost of not being able to see all clients in one location?
• Cost of setting up groups, time tabling and sending weekly correspondence?
• Cost of not having any idea how to successfully run an Email and SMS marketing campaign?
• Cost of being blacklisted, because of poor email practices?
• Cost of not having a strong referral network of affiliated practitioners ready and available?
• Cost of thinking you will survive without referrals from other practitioners?
• Cost of not knowing your breakeven?
• Cost of not knowing where all of your revenue comes from?
• Cost of not knowing all of your expenses until after your BAS or worse; the end of the Financial Year?
• Cost of Moving? Phones, equip, printing, stationary, time out.
• Cost of Phones?
• Costs for Receptionist?
• Cost of not having a transportable 8 digit Business number?
• Cost of Unprofessionalism of using personal mobile and home phone?
• Cost of stock on hand going over used by date?

End with:

If you have said one of these things or even thought this was a good idea, you cannot afford not to use Practice Manger 24/7!

At the bottom of page:

What are some of the dumb things you have heard (or if you are brave enough – you have said). Please give us your feedback and help us help others just like you!  Open Forum for comments, replies on this one!