An outsource lab calls me up and wants to send me some work...Do I... A) Bring it. Cant say no to money coming in. B) Do it, i'm flattered they thought about using my work and this can help pay some supply costs. C) Do it for a bit and only take the units I want. D) No, My business is built...
I'm curious how outsource labs are hurting our industry. They have a business model built around service instead of manufacturing and focus on those core competencies rather than product development. If they are able to pay full price for your product and then upcharge it to doctors then that means you have some opportunities to do the same.
If this particular lab is in your direct target market then it might not be in your best interest to provide them with your quality products, you would just be competing against yourself. There are of course other factors to also consider on whether this...See more would be a good business move as well. Strain on personnel, equipment, or space are important factors to think about.
Also, there are a lot of opportunities out there right now to hire strong technicians at good rates, the additional business this outsource group brings in short term might help you take advantage of this anomaly in our industry.
After evaluating all the pros and cons objectively you can best determine if it's the right move for you. And while Van Gogh likely never sold one of his paintings with someone else's name on it, I would be surprised if there haven't been countless mid-level artists over the years that have.
According to LMT's 2013 Dentist Survey, lab owners are sometimes hesitant to raise their fees, fearful of losing the account. Yet 53% of dentists surveyed feel it’s reasonable for a laboratory to increase prices once a year by an average of 3.3%. Twenty-nine percent think an increase—an average of 4.6—every two years is more acceptable.
LMT Original Research © 2010 - 2015
84 South Main St., Newtown CT 06470
203-426-4LMT · 203-491-2300 (fax)
LMT Communications delivers the business strategies, information, dental laboratory news and education that dental laboratory decision-makers need to succeed. Through LMT Magazine and our LAB DAY shows, LMT works to advance excellence in dental technology, enhance the products, services and communication of dental technicians, and give dental laboratory owners and managers the tools they need to flourish. Learn More »