Stop Guessing: Build Procedure Prices That Actually Make Money

Pricing should be a math problem, not a mood. Yet many clinical teams still set fees by copying a neighbor, accepting an insurer’s number, or tacking on a round figure that “feels right.” That approach can leave profitable time blocks underpriced and difficult cases subsidized by everything else.

We’ve seen this happen across multiple specialties—dermatology, dental, and podiatry alike. The details look different, but the underlying problem is the same: what looks profitable on paper often isn’t once the math is done.

Dermatology & Aesthetics

A dermatology practice offered multi-syringe filler packages priced years earlier by simply matching a nearby clinic. Patients were booking heavily, but when we helped the team analyze their costs, they discovered each filler package was actually earning less profit per hour than a quick Botox session. The combination of high consumable costs (fillers are expensive), longer appointment times, and staff support made this “premium” service less efficient than expected.

Similarly, a med spa realized their laser hair removal packages weren’t delivering the margins they thought. Once equipment costs, disposables, and room time were factored in, they saw that facials and peels often outperformed lasers on a per-hour basis.

Dental

A dental practice learned the same lesson with whitening packages. At $500, they seemed profitable—until disposable trays, gels, staff time, and marketing were accounted for. Compared to hygiene visits, whitening brought in far less per hour.

Another practice discovered implants were priced as a “prestige” service but didn’t deliver the same profitability per hour as crowns. Multiple visits and surgical chair time tipped the scales. Once they adjusted their implant pricing and rebalanced scheduling, their revenue mix improved.

Podiatry

In podiatry, custom orthotics often present the same issue. One clinic realized the lab fees plus fitting time left very little margin compared to routine diabetic foot checks. Patients saw orthotics as expensive, but the practice’s per-hour return was weak.

Another podiatry group found that in-office nail avulsions tied up staff and rooms for 45 minutes but were billed at nearly the same rate as a 20-minute diabetic foot exam. Until they restructured pricing, their “procedures” were actually dragging down efficiency.

The Core Problem Across Specialties

Whether it’s filler, implants, or orthotics, the trap is the same:

• Consumables creep up year over year, shrinking margins.

• Setup and turnover time gets ignored, but ten “invisible” minutes repeated all day erodes profit.

• Competitor copying creates false confidence—your neighbor’s numbers don’t reflect your costs.

• High sticker prices mislead—a glamorous procedure isn’t always the most profitable.

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The Solution: A Simple Model

You can rebuild pricing for any procedure in under fifteen minutes using four building blocks:

1. Consumables – List items consumed per case and calculate true per-unit cost, including wastage.

2. Labor – Convert provider and staff minutes (including setup and documentation) into cost.

3. Commission/Performance Pay – Factor in any incentives or case-level bonuses.

4. Overhead Spread – Allocate the fair share of rent, admin, marketing, and software costs.

Once the math is done, add your target margin. Then compare profit per hour: what does this procedure earn compared to your bread-and-butter services? If a “premium” procedure lags behind routine ones, you have three levers: adjust the price, shorten the time, or schedule selectively.

A Quick Sprint to Try

Choose five high-volume procedures. Rebuild each fee from the cost up, apply your target margin, and compare profit per hour against your current pricing. Roll out the changes with clear gain and minimal pushback, then expand the process next quarter.

The Payoff

Across dermatology, dental, and podiatry practices, we’ve seen the same outcome: once procedures are priced based on math rather than mood, teams stop overloading low-yield work and start scheduling strategically. Slight adjustments unlock meaningful margin improvements—and those improvements fund better staff pay, new technology, and practice growth.

Pricing isn’t about charging more—it’s about ensuring every hour pays for excellent care and a resilient future. When your numbers reflect reality, you can move forward with confidence—because the math supports the mission.