The Financing Deal-Breaker of Lost Cases

In my fourth book for orthodontic case acceptance, No to Lost Cases, I spent most of an entire chapter outlining my opposition to what to this day remains the worst tactic that I have seen used within your profession: the use of a credit check to score, and then determine, the minimum down payment required for a family to begin treatment at the practice.

I cited numerous reasons for my opposition to this, but the bottom line is that, in terms of new patient starts, practices that do this are quietly riding a case-acceptance train wreck, all to avoid an occasional uncollected debt which happens, statistically, less than five percent of the time.

The reason isn’t complicated. You have too much competition to successfully dictate payment terms, and, speaking from personal  observation of hundreds of recorded client consults, I can tell you that a high down payment requirement – specifically, $1000 and up – is a shock to the system for many of your visitors. Keep in mind that these people do not know what to expect, financing-wise,  when they are investigating orthodontic treatment, and many do not have a thousand dollars set aside, or stuffed in a mattress somewhere, in anticipation of beginning treatment.

Compounding the problem with losing these cases is the fact that, especially with just one spouse frequently present, visitors frequently do not voice a concern with the high down payment. The response instead is usually “let me talk to my spouse” (translation: “we’re done here”), so there is no opportunity for negotiation. And you will never see them again.

Unless, of course, you happen to visit your competitor’s clinic during the next year or two.

How does your practice avoid losing cases to the down-payment-deal-breaker? Here are some options that are effective and worth considering, all in the name of mitigating financial pain:

• For aligner cases, offer a fourth financing option that splits the lab fee into two consecutive monthly payments, with the aligners delivered after the second payment is made in 30 days.
• For braces, always have a third, low down payment option between $500 and $800 dollars.
• To gain immediate commitment, accept a portion of the down payment on the spot as a records fee – perhaps half of the amount due – with the balance due (and billed to the card or account on file) the day before the appliances are placed.

There are other options not listed here; the key is to be willing to experiment. Nothing you try comes with a “no turning back” clause. Give any modification to your terms at least ninety days (and preferably six months), monitor your progress, and adjust the sails accordingly. Also remember that there are many people, including me, who prefer to get this out expense out of the way as quickly as possible. Continue to offer payment-in-full and high down payment options as well as options with a low barrier to entry.

In other words, don’t shoot yourself in the foot by being difficult to do business with.