Overhead Ratio Analysis
Overhead control determines profitability. Understand benchmarks and identify improvement opportunities.
Industry Benchmarks
| Category | Target % | Range |
|---|---|---|
| Staff Costs | 24-28% | 22-30% |
| Rent | 5-7% | 4-9% |
| Dental Supplies | 5-7% | 4-9% |
| Lab Fees | 8-12% | 6-14% |
| Marketing | 2-4% | 1-5% |
| Total Overhead | 60-70% | 55-75% |
High Overhead Solutions
- Staff efficiency improvements
- Supply cost reduction
- Lab fee negotiation
- Technology investments
Analysis Tips
- Compare to industry standards
- Trend over 3 years
- Identify outliers
- Calculate impact of changes
Bottom Line
Overhead >70% requires attention. Target 60-65% for strong profitability. Every percentage point matters.
Overhead analysis help? Contact DentalBridge.