The president of Burger King calls the president of McDonald’s about getting together to talk about merging their restaurants. Does the president of McDonald’s accept or not accept the call? Does the president of McDonald’s want to know more about what the president of Burger King has in mind? Do they talk or do they not talk?
You’d better believe that the president of McDonald’s would always be ready to talk to the president of Burger King, Wendy’s, Pizza Hut or whatever. The reason, you ask? It’s called gaining “Market share.”
Market share is that portion of the marketplace that a business controls. It’s a result of building a recognized name in the community which brings an expectation of business, now and for many years in the future. How is market share established? It is built by creating name recognition through developing a satisfied customer base that leads to more referrals in the future.
Merging businesses is a very common method used to increase market share for the acquiring company. A loyal customer base can be transferred to the acquiring company thereby expanding that company’s customer base or market share. You will not find the president of McDonald’s telling the president of Burger King that he would not be interested in Burger King’s customers because “they aren’t our kind of customer.” New customers are always a welcome addition to any growing business.
The greater your market share, the better the future is for your business. Every astute businessperson understands the value of the market share and when the opportunity arises to improve market share they are always ready to listen and act. Market share is not just important; it is the backbone or core of all viable businesses.
Well, the same rule applies to the dental business. Dentistry is a business like any other business and market share considerations should be just as important to dentists as it is to the president of any Fortune 500 company. The dental marketplace is a lot more competitive today than it was 20 years ago. With capitation programs, Preferred Provider Organizations and HMOs infringing on the dental market, maintaining and expanding your practice market share becomes critical. When the opportunity to discuss a possible practice for merger arises, you owe it to yourself to at least listen to the details and explore the possibilities.
A practice merger can add thousands of fee-for-service patients to your practice overnight. This means up to several thousand more people in your market area will be coming to your practice for dental treatment rather than to your competitor. Also, they will be referring patients to your practice rather than to your competitor’s practice.
Acquiring a practice for merger also eliminates a competitor since the owner of the merged practice will retire or work for you for a number of years before retiring. You also prevent a more competitive dentist from buying that practice and competing with you. Practice mergers increase productivity, profitability and market share and can provide an opportunity to add another doctor to your practice to share the responsibility of ownership.
It’s time to start your quest for entrepreneurial dentistry, increase your market share and secure your financial future by calling AFTCO today 480-634-4803 or visit our website at www.AFTCO.net. It’s time to call AFTCO!