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573% Return on Investment for Preventive Maintenance 

Every dental office recommends it to their patients. Every manufacturer shares they wouldn't go without it. Preventive Maintenance (PM) that is. The biggest reason is that it has an amazing ROI.


We have looked at reports in many industries and they all point to PM ROI between 500-600%. This means for every $1 spent on preventive maintenance they get $5-6 in value. I wonder what the ROI is for annual exams and hygiene appointments? Probably pretty high.


Regarding your equipment, we have enough data and history to determine the ROI for PM (Reach Recare) in a dental office.


The average Recare costs $836 a year in labor and trip charges (Parts needed are dependent on manufacturer requirements and equipment age).

So what value do you get?

1. Extended Equipment Life - data shows PM extends life 3+ years. For an average office of $230k in equipment, taking life from 12 years to 15 years means a cost/year drop of $3833 ($19,166 to $15,333).

2. Emergencies Avoided - One emergency of 4 hours will cost the avg office approx. $4,350 - lost production and at least a 2 hour Urgent service call. Over 12 years of equipment life, this cost is $362/year.

3. Reduced Regular Repairs - We have found that clients on Recare have a reduction in regular service calls of approx. 33%. From 12calls/yr to 8. Four fewer calls at 1 hour each saves approx. $750/year.

4. Peace of Mind and Removal of Nuisances - PRICELESS.


To calculate ROI - ($3833+$362+$750)/$836 = 573%. For every $1 you spend on preventive maintenance you get back $5.73.


If you are on Reach Recare, Congrats - you are getting a great ROI. If you are not on it yet, check this out or ask your Reach technician to share more about it.


We love to promote Preventive Maintenance to our clients because it is the right thing to do and gives an amazing ROI.

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Guest
Nov 16, 2023
Rated 5 out of 5 stars.

Very enlightening. Thank you.


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