Chair cost is the dollar amount it costs us every time we see a patient just to breakeven.
Breakeven is what it will cost to cover your expenses before you make a profit.
You will often hear us use both of these terms. Simply to reiterate, your breakeven is the dollar amount you must generate to pay for expenses before money can be put to the bottom line to grow the practice and chair cost is your breakeven amount per patient.
Why is this important to you? Well, it can mean the difference between whether or not your practice will have the ability to invest in the latest technology, it determines the ability of whether or not you are able to give or receive raises and/or bonuses, and most importantly, being profitable gives us the ability to save for the unexpected.
You will hear us refer to chair cost and breakeven often throughout the OSC library.