Top Challenges in the Laboratory and How to Tackle Them
Posted Feb 12, 2025 in LMT Surveys
CHALLENGE: As corporate dentistry grows, I’d like to look into working with DSOs as a means to get more work in the door. What do I need to consider?
ADVICE: About 11% of laboratory owners have contracts with DSOs, according to LMT’s 2025 State of the Industry Survey. A prime example is Jay Collins, CEO of The Dental Lab in Bristol, PA, whose Cornerstone Dental Lab division has been focused on the DSO market for over 15 years. Today, the lab has a dozen DSO contracts servicing about 250 dentists. Here are some of the points he advises to consider:
Tight profit margins. Collins’ margins are 6 to 8% for his DSO clients. Also, some DSO contracts are one-sided, meaning you may have to commit to pricing and turnaround time without being guaranteed a certain volume of work.
Consequently, Collins is strategic when formulating his contracts, service offerings and pricing in order to maximize profits. In addition,...