April 20, 2025 • 16 mins
Welcome to the KC CHIROpulse Podcast.
This week’s topic: Keep Your Costs Low and Your Profits High
The KC CHIROpulse Podcast is designed for Chiropractic professionals ready to elevate their practice to new heights, and is hosted by Kats Consultants coaches Dr Michael Perusich and Dr Alex Kallio. Michael and Alex are both seasoned experts in Chiropractic business development. This podcast provides invaluable insights and actionable strategies to help you create a flourishing and sustainable Chiropractic business.
In this episode, we discuss:
- What is overhead and how to identify it
- Why maintaining good overhead controls is important to success
- How some expenses “creep” up on you over time
- Why a good business coach can help you manage overhead effectively
- …and so much more…
In each episode of KC CHIROpulse, we delve into crucial aspects of building a successful Chiropractic practice, covering topics such as establishing a strong foundation, adopting a patient-centric approach, mastering marketing techniques, achieving financial fitness, fostering effective team building and leadership, integrating technology and innovation, and navigating common challenges in the field.
Whether you're a seasoned chiropractor or just starting your practice, the KC CHIROpulse Podcast offers a wealth of knowledge and personalized practical advice to help you navigate the intricate world of Chiropractic business. Join us on this journey as we explore proven strategies, share success stories, and connect with industry experts to empower you in your pursuit of building a thriving Chiropractic practice.
Don't miss out on the latest insights and expert guidance. Subscribe now and unlock the secrets to taking your Chiropractic practice to the next level. Your success is our priority at Kats Chiropractic Business Advisors.
DISCLAIMER: The information presented in this broadcast is for educational purposes only and is not intended to offer legal, investment, accounting, or medical advice, and represents the opinions of the speakers. Seek the consultation of a professional for advice in those areas. And remember…your results using this information may be different than described.
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Transcript
Episode Transcript
Available transcripts are automatically generated. Complete accuracy is not guaranteed.
Dr. Michael Perusich (00:09):
Managing overhead is absolutely necessary
for your success.
Hi everybody.
Welcome to the KC Chiro Pulsepodcast, brought to you by Kats
Consultants and Chiro HealthUSA.
I'm your slightly hoarse host,Dr.
Michael Perusich, and I'm joinedby my guest host, Dr.
Alex Kallio.
Alex, you and I talk about thistopic all the time and how
(00:30):
important it is to manage youroverhead and we often see
doctors who get a little upsidedown with themselves when it
comes to the overhead.
I think in part just'cause theydon't understand it.
Dr. Alex Kallio (00:43):
Yeah.
It's one of those, there,there's two ways to grow the
office and be more profitable.
One is certainly get busier anddo more the other, lower the
overhead, yeah.
You can not grow and get moreprofitable by managing that
overhead.
So it's an extremely importantpart of the business.
When we look at how do we comeabout at managing that.
Dr. Michael Perusich (01:04):
Very much so let's just so we get the
audience on the same page withus, let's define what overhead
is and some of overhead isobvious.
Your rent, for example, or yourmortgage on your practices is
part of your overhead, andthat's one of those fixed.
Expenses.
And then we have variableexpenses, like for example, your
utilities.
It's not the same every month.
(01:26):
So we call those variableutilities.
So the fixed expenses are alittle easier to plan for.
Yeah, it's the variablessometimes that get away from us,
but so everybody should have alist of what all their expenses
are.
And if you don't think you do,you probably actually do,'cause
it's on your profit and lossstatement.
Dr. Alex Kallio (01:45):
That is maybe a little bit of cart before the
horse there too, is I hopeeverybody is using some sort of
accounting software to I hopeso.
Track a p and l and, have that,that there's some clients can
run to that, that haven't been.
It's an extremely importantpiece of staying on top of the
overhead component and beingable to track that.
Dr. Michael Perusich (02:05):
Yeah.
And you can't manage yourpractice by just looking at your
checking account and saying, oh,there's money in there this
week.
We must be in good shape.
We've gotta have a little bitmore control over it.
So we need to hear a word fromour sponsors real quick, but I
want to come back and I want todive into this topic of overhead
just a little bit deeper andtalk about how you really should
(02:25):
be managing it.
So hang on there, everybody.
We'll be right back.
ChiroHealth USA (02:32):
In today's economy, every dollar counts.
Families are facing toughchoices, having to reconsider
what was once essential to them,but close to healthcare, no one
should have to compromise ontheir wellbeing because of
financial constraints.
That's where Chiro, health, USAsteps in the solution for your
practice.
We understand the financialpressures families are under.
Whether they're insured onMedicare or paying out of pocket
(02:56):
for treatment.
By offering discounts on care,you can ensure that your
patients can still afford thetreatment they need.
At Chiro Health USA, we'recommitted to making sure no
family has to sacrifice theirhealth due to financial
hardship.
We will work with you to createa game plan that keeps your
waiting room full and yourpractice thriving.
And here's the best part,offering affordable care not
(03:17):
only benefits your patients, butalso positively impacts your
bottom line.
So why wait?
Join Chiro Health USA Today andjoin the ranks of the most
successful practices becausewhen you put your patients
first, everyone wins.
Dr. Michael Perusich (03:42):
Welcome back to the KC ChiroPulse
podcast.
We are talking about managingoverhead, and Dr.
Alex, you brought it up.
We see a lot of doctors outthere who really aren't doing
much to manage their overheadand maybe it's because they just
don't have a basic understandingof accounting or, I know we're
all busy, but this is one ofthose components that we have to
manage.
Dr. Alex Kallio (04:02):
Yeah.
And part of it, starts withreally probably setting a little
bit of a budget, especially forthose variable expenses.
The, I think the big one thatgets away from people many
times.
Clinic supplies, you're orderingBiofreeze pillows or any of
these things, or we just, we seesomething, that catches our eye
in an ad and we just all of asudden go order things.
Where did that fit in the budgetfor the month?
(04:23):
What was the cash flow?
So sometimes having a little bitof a, an idea of again, what we
need to order, what are oncekind of thing.
Are we setting aside money forthose things, or do we have a
contingency.
Account set aside for thosetypes of purchases there's a
little more thought that needsto go into it many times than
just, oh, yep, I've got money onthe account.
Let's get it, thought process.
Dr. Michael Perusich (04:43):
So if you don't already have a budget,
it's really easy to do.
You can probably get youraccountant if you have one to
help you with it, but it'sliterally just making a list of
all the expenses.
And if you don't know how toread a p and l profit and loss
statement, or if you don't havea good accounting software set
up so you don't have one, atleast go through your bank
statements and your credit cardstatements, and you can pretty
(05:04):
much find.
99% of your expenses probably,but make a list of'em, make a
little spreadsheet and figureout what are we paying out every
month.
And then from there we gottamake sure, number one, that
we've got enough revenue comingin to cover.
And unfortunately we see a lotof doctors missing the boat on
that just a little bit.
(05:24):
And we see their profit perpatient visit is very minimal.
Sometimes it's negative.
They're actually giving moneyaway basically every time a
patient comes in the door.
Dr. Alex Kallio (05:33):
That ties back to, we have the conversations
all the time about proper feeschedule profit per visit.
What are we collecting per allof those statistic, I can't talk
here, statistical things thatkind of tie together that if we
don't know what those numbersare and how that all
interrelates.
It gets really hard to trackprofit and especially over time,
(05:54):
just success of the practice.
While we may think I don't needto worry about that, this all
kind of interrelates to eachother.
Dr. Michael Perusich (06:00):
Sure it does.
And we have things that creep inon us, like I.
I, I'll give you some personalexamples.
In our practice, every year ourtrash pickup would go up a
little bit and,$20 a monthdoesn't sound like much until
you are two or three years intoit.
And all of a sudden we're payingseveral hundred dollars more
than we started out paying.
(06:22):
Is there another service outthere that we could switch to
and save some money?
Our phone Bill, another greatexample.
We were paying over$700 a monthfor our phone system and our
landline system, and we went toa computer-based VOIP based
system and went from 700 a monthto$75 a month.
(06:43):
Yeah.
So we saved a ton of money.
But it was one of those thingswhere the phone expense didn't
start out at 700.
It just crept up over time.
And so you've really gotta watchthis.
So when we talk about budgets,when we talk about expenses and
those kind of things, there is acreep to it.
And they have a tendency toincrease every year.
So you've gotta constantly begoing back and really analyzing
(07:06):
your profit and loss from yearto year and seeing where things
are changing.
And it's not something you justdo once a year.
You really should do it probablyevery quarter.
Dr. Alex Kallio (07:14):
Yeah, absolutely.
And there's a couple other kindof hidden areas that can creep
like that.
One look in our personal livestoo, subscription.
What is the office signed up on?
How many things are you payingfor that you aren't really using
that creep up on you?
Yeah.
Yeah.
And credit card processing fees.
That's another one thatdepending if you have not
shopped fees or companies thatare running that, that can
(07:36):
really start to add up quite abit, even an extra 1% on.
20 to$30,000 adds up quick overthe course.
Those kinds of things.
Or potentially, is there othersolutions of.
Passing some of that along topatients, but we're applicable
or we're able to.
Sure.
There's just some thought thatneeds to go into that.
Dr. Michael Perusich (07:58):
Yeah, no, that's a great point.
The, those credit card feessneak up on you really fast and
they do mount up.
Another things that mount up arelittle things like supplies.
Do you use toilet paper andpaper towels and kleenex and
those kind of things in yourpractice?
Yeah.
You probably do.
So if we're gonna use aconsumable product, why don't we
buy in bulk so we can save somemoney?
(08:20):
I.
Maybe we need a Costcomembership or a Sam's Club
membership, or maybe just watchAmazon and, can we sign up for a
subscription program for paperproducts and get on, get them
cycling through the practice ona regular basis, number one.
But number two, can we si, canwe save some money by doing
that?
And you'd be shocked how muchmoney you can save by really
(08:41):
paying attention to those kindof things.
I
Dr. Alex Kallio (08:43):
said, it's one of those things that you don't
realize or necessarily noticethe 15 or$20 each, the time that
it happens, right?
But by the end of the year whenit's happened, even five or six
time in multiple categories, allof a sudden we're talking, you
talk thousands of dollars thatyou're, you've spent, that you
didn't even realize
Dr. Michael Perusich (09:02):
real quick.
Real quick.
Alright.
We gotta take another break hereand hear another message from
our sponsors.
But, so when we come back, Iwant to talk about creating a
mind shift in your practice andreally thinking about Profit
First.
So we'll be right back.
Kats Consultants (09:23):
Kats Chiropractic consultants, your
partner in chiropractic success.
We are dedicated with one-on-oneguidance to bring you all your
practice management needs.
Let's supercharge your practice.
Give us a call today.
Dr. Michael Perusich (09:50):
Everybody.
Welcome back to the KCChiroPulse podcast.
We're talking about managingoverhead, and Alex, we've talked
about some great things.
You know the fact that you can'tjust leave your expenses to
chance.
You have to manage it.
You can't just review yourexpenses once a year.
You've gotta manage it.
Probably every quarter you needa good accounting system.
You really need to have a goodaccountant as well, just helping
(10:13):
you manage those numbers.
But we need to be payingattention.
'cause there are things like andyou brought this up, Alex,
things like subscriptions thatjust kind yeah.
Sneak up on you and you set'emand forget'em and maybe have a
subscription to something you'repaying$49 a month for, which
doesn't sound like a lot ofmoney, but if you're not using
it, it's a lot of money.
Let's get rid of it.
Dr. Alex Kallio (10:33):
It's the piece of equipment that's sitting in
the room collecting dust, youknow that you're not, not using
or generating revenue with.
So we gotta look through allthat in the other spot I think
we, we forget about toosometimes is the personal
expenses that we will runthrough the business.
And have we overloaded that to apoint that it's a little out of
control or just, again, thingsthat, that.
(10:54):
Really shouldn't be there ornot.
And that's where having thataccountant comes in, being able
to have those conversations andend of the year, not just the
strategy of, oh, hey, you, yeah,you've, we need to buy some
equipment, or we need to do,that kind of thing.
Take some planning.
You need to have thoseconversations earlier than,
December 31st.
Dr. Michael Perusich (11:10):
And don't get too hung up on thinking
about the expense side of yourpractice.
We need to manage it.
We need to evaluate it.
But if you think about it toomuch, and I see this happen a
lot, then we start falling downthis curve of trying to manage
expenses and not managingprofits.
So we always have to have thatprofit first mentality in the
(11:31):
practice because if we don'thave profit, it doesn't matter
what our expenses are.
We're going down in flamesanyway.
That comes back to making surethat you have a good fee
strategy, making sure thatyou're covering your overhead
with your collections.
And it's not just your overhead,it's overhead plus some profit
in the practice.
'cause we want to be able togrow on the profit side.
(11:52):
Have we allocated enough in ourbudget for hidden things like
taxes that only come upperiodically?
Are we really watching theexpenses and making sure that,
if things are creeping up toomuch, can we find an alternative
way?
Like I talked about with thephone system can we find a
different methodology thatallows us to be more profitable?
(12:12):
But yeah, I love this quote, andI think it was Napoleon Hill
that said this.
What you think about comesabout.
I.
If we are constantly laboringover our expenses, so there's a
difference between laboring overit and managing them.
So if we're constantly thinking,oh my gosh, my overhead's too
high, how am I gonna pay forthis?
I gotta get our expenses down.
(12:32):
If you're constantly thinkingabout that, you'll never get
profits first.
You'll only think aboutexpenses.
And guess what?
The more you think aboutexpenses.
The more expenses incur.
Dr. Alex Kallio (12:43):
You think slope of the paralysis, by analysis
yeah, exactly.
If you go down that road tooheavy and get stuck there, yes.
We lose sight of the ultimategoal.
But we wanna make sure we have aPulsee on it.
We know where things arehappening and then pay attention
to the details.
Things we go back to, eventhings like nutrition products.
Have you changed your retailpricing on that?
(13:04):
If you're, the cost of all thosegoods goes up, at least usually
annually that you're buying,have you changed and raised your
prices right to match thoseincreases?
And it just little things likethat, again, that can add up
over time.
I.
Dr. Michael Perusich (13:16):
Very quickly.
Very quickly.
So go through your expenses.
What can you live without?
What can you replace with acheaper service?
For example talk to your yoursuppliers.
Can we buy in bulk and getthings cheaper?
Can we look at options withAmazon and Costco and places
like that just to get our.
(13:37):
Just to,
Dr. Alex Kallio (13:38):
Check your practice against things.
I've been amazed some of thestuff that I've, have always
ordered through certainsuppliers and as, as much as
maybe some people want tocomplain about Amazon, you can
find a lot of those thingssometimes cheaper, through that
service or through anothersupplier, that's out there.
Shop those things periodically.
Dr. Michael Perusich (13:56):
Talk to your suppliers about.
Analgesic.
If you offer analgesic in yourpractice, if you buy 20 cases of
it, do you get a huge pricebreak?
20 cases sounds like a lot, butI'm telling you, if you have
that much product in yourpractice, you're gonna move it
too.
So there's, it's a double-edgedsword.
So it's only are you savingmoney, but now you're more
profitable with it.
(14:16):
Pillows we used to buy pillows.
Buy.
I think we would buy four casesat a time of pillows.
I don't know, there's maybe 10pillows in a case, and we get a
huge discount on it.
Can I make more profit when Isell pillows now if I get a
discount on my order?
Absolutely.
Am I motivated to sell morepillows?
Absolutely.
I've got too many of'em in myoffice.
I gotta push'em.
(14:37):
We gotta get'em out the door.
So there's really a benefit tostocking up sometimes on things
like that, especially if it's aproduct that you sell or a
consumable that you use in theoffice.
Dr. Alex Kallio (14:48):
And an easy way to peek at that.
Just look back at your year, youknow how many did you sell last
year?
Were you ordering them five at atime?
Once a month.
And paying separate shipping, oneach one of those right over
your expenses.
Out where, okay, let's orderthat even, six months at a time
to, to have for that period.
You said you're probably end uprunning out at four months
because you are pushing themmore, making more profit on
(15:10):
that.
So it's just, again, think wethink outside the box of how
we've approached some of thisand approach it just a little
differently.
Yeah.
And that's where many times wecome in and helping to look at
that from a different angle thanwhat you maybe have thought of
on your own.
Dr. Michael Perusich (15:24):
Yeah.
And, having a great coach withwith business experience and
statistical analysis experienceand those kind of things is
really important for yourpractice because it is a lot to
manage sometimes, and that's oneof the great things that I think
we do for our clients is reallyhelping them.
I.
Manage the numbers.
We talk about stats all thetime, but it's also helping you
manage your profit and loss,helping you manage your
(15:45):
overhead, those kind of things.
Helping be a sounding board ifyou think you need to buy a
piece of equipment, okay, let'slook at the return on investment
that you might be able to get.
Is it worth it?
And so utilizing coaches in thatmanner where you have a sounding
board can really be beneficialand profitable to your practice.
Dr. Alex Kallio (16:04):
And we just had this discussion, yesterday with
somebody else of, do you knowthe metrics?
Do you know your, all the keypoints of, whether or not to buy
that equipment, to, buy all theextra stock kind of thing.
And that is again, where havingsomebody who's familiar in that
realm to help man, help guideyou down that road becomes so
important.
Dr. Michael Perusich (16:22):
Huge.
It's huge.
All right, Dr.
Alex, thanks for being on heretoday.
Great discussion about managingyour overhead.
Go check.
Check us out@Katsconsultants.com.
You can see all the great thingsthat we're doing to help clients
out there and maybe we can helpyou too.
Give us a call.
Alright, everybody, be sure tosubscribe and share our podcast.
We appreciate you tuning inevery week and we'll see you
(16:42):
next time.
Managing overhead is absolutely necessary
for your success.
Hi everybody.
Welcome to the KC Chiro Pulsepodcast, brought to you by Kats
Consultants and Chiro HealthUSA.
I'm your slightly hoarse host,Dr.
Michael Perusich, and I'm joinedby my guest host, Dr.
Alex Kallio.
Alex, you and I talk about thistopic all the time and how
(00:30):
important it is to manage youroverhead and we often see
doctors who get a little upsidedown with themselves when it
comes to the overhead.
I think in part just'cause theydon't understand it.
Dr. Alex Kallio (00:43):
Yeah.
It's one of those, there,there's two ways to grow the
office and be more profitable.
One is certainly get busier anddo more the other, lower the
overhead, yeah.
You can not grow and get moreprofitable by managing that
overhead.
So it's an extremely importantpart of the business.
When we look at how do we comeabout at managing that.
Dr. Michael Perusich (01:04):
Very much so let's just so we get the
audience on the same page withus, let's define what overhead
is and some of overhead isobvious.
Your rent, for example, or yourmortgage on your practices is
part of your overhead, andthat's one of those fixed.
Expenses.
And then we have variableexpenses, like for example, your
utilities.
It's not the same every month.
(01:26):
So we call those variableutilities.
So the fixed expenses are alittle easier to plan for.
Yeah, it's the variablessometimes that get away from us,
but so everybody should have alist of what all their expenses
are.
And if you don't think you do,you probably actually do,'cause
it's on your profit and lossstatement.
Dr. Alex Kallio (01:45):
That is maybe a little bit of cart before the
horse there too, is I hopeeverybody is using some sort of
accounting software to I hopeso.
Track a p and l and, have that,that there's some clients can
run to that, that haven't been.
It's an extremely importantpiece of staying on top of the
overhead component and beingable to track that.
Dr. Michael Perusich (02:05):
Yeah.
And you can't manage yourpractice by just looking at your
checking account and saying, oh,there's money in there this
week.
We must be in good shape.
We've gotta have a little bitmore control over it.
So we need to hear a word fromour sponsors real quick, but I
want to come back and I want todive into this topic of overhead
just a little bit deeper andtalk about how you really should
(02:25):
be managing it.
So hang on there, everybody.
We'll be right back.
ChiroHealth USA (02:32):
In today's economy, every dollar counts.
Families are facing toughchoices, having to reconsider
what was once essential to them,but close to healthcare, no one
should have to compromise ontheir wellbeing because of
financial constraints.
That's where Chiro, health, USAsteps in the solution for your
practice.
We understand the financialpressures families are under.
Whether they're insured onMedicare or paying out of pocket
(02:56):
for treatment.
By offering discounts on care,you can ensure that your
patients can still afford thetreatment they need.
At Chiro Health USA, we'recommitted to making sure no
family has to sacrifice theirhealth due to financial
hardship.
We will work with you to createa game plan that keeps your
waiting room full and yourpractice thriving.
And here's the best part,offering affordable care not
(03:17):
only benefits your patients, butalso positively impacts your
bottom line.
So why wait?
Join Chiro Health USA Today andjoin the ranks of the most
successful practices becausewhen you put your patients
first, everyone wins.
Dr. Michael Perusich (03:42):
Welcome back to the KC ChiroPulse
podcast.
We are talking about managingoverhead, and Dr.
Alex, you brought it up.
We see a lot of doctors outthere who really aren't doing
much to manage their overheadand maybe it's because they just
don't have a basic understandingof accounting or, I know we're
all busy, but this is one ofthose components that we have to
manage.
Dr. Alex Kallio (04:02):
Yeah.
And part of it, starts withreally probably setting a little
bit of a budget, especially forthose variable expenses.
The, I think the big one thatgets away from people many
times.
Clinic supplies, you're orderingBiofreeze pillows or any of
these things, or we just, we seesomething, that catches our eye
in an ad and we just all of asudden go order things.
Where did that fit in the budgetfor the month?
(04:23):
What was the cash flow?
So sometimes having a little bitof a, an idea of again, what we
need to order, what are oncekind of thing.
Are we setting aside money forthose things, or do we have a
contingency.
Account set aside for thosetypes of purchases there's a
little more thought that needsto go into it many times than
just, oh, yep, I've got money onthe account.
Let's get it, thought process.
Dr. Michael Perusich (04:43):
So if you don't already have a budget,
it's really easy to do.
You can probably get youraccountant if you have one to
help you with it, but it'sliterally just making a list of
all the expenses.
And if you don't know how toread a p and l profit and loss
statement, or if you don't havea good accounting software set
up so you don't have one, atleast go through your bank
statements and your credit cardstatements, and you can pretty
(05:04):
much find.
99% of your expenses probably,but make a list of'em, make a
little spreadsheet and figureout what are we paying out every
month.
And then from there we gottamake sure, number one, that
we've got enough revenue comingin to cover.
And unfortunately we see a lotof doctors missing the boat on
that just a little bit.
(05:24):
And we see their profit perpatient visit is very minimal.
Sometimes it's negative.
They're actually giving moneyaway basically every time a
patient comes in the door.
Dr. Alex Kallio (05:33):
That ties back to, we have the conversations
all the time about proper feeschedule profit per visit.
What are we collecting per allof those statistic, I can't talk
here, statistical things thatkind of tie together that if we
don't know what those numbersare and how that all
interrelates.
It gets really hard to trackprofit and especially over time,
(05:54):
just success of the practice.
While we may think I don't needto worry about that, this all
kind of interrelates to eachother.
Dr. Michael Perusich (06:00):
Sure it does.
And we have things that creep inon us, like I.
I, I'll give you some personalexamples.
In our practice, every year ourtrash pickup would go up a
little bit and,$20 a monthdoesn't sound like much until
you are two or three years intoit.
And all of a sudden we're payingseveral hundred dollars more
than we started out paying.
(06:22):
Is there another service outthere that we could switch to
and save some money?
Our phone Bill, another greatexample.
We were paying over$700 a monthfor our phone system and our
landline system, and we went toa computer-based VOIP based
system and went from 700 a monthto$75 a month.
(06:43):
Yeah.
So we saved a ton of money.
But it was one of those thingswhere the phone expense didn't
start out at 700.
It just crept up over time.
And so you've really gotta watchthis.
So when we talk about budgets,when we talk about expenses and
those kind of things, there is acreep to it.
And they have a tendency toincrease every year.
So you've gotta constantly begoing back and really analyzing
(07:06):
your profit and loss from yearto year and seeing where things
are changing.
And it's not something you justdo once a year.
You really should do it probablyevery quarter.
Dr. Alex Kallio (07:14):
Yeah, absolutely.
And there's a couple other kindof hidden areas that can creep
like that.
One look in our personal livestoo, subscription.
What is the office signed up on?
How many things are you payingfor that you aren't really using
that creep up on you?
Yeah.
Yeah.
And credit card processing fees.
That's another one thatdepending if you have not
shopped fees or companies thatare running that, that can
(07:36):
really start to add up quite abit, even an extra 1% on.
20 to$30,000 adds up quick overthe course.
Those kinds of things.
Or potentially, is there othersolutions of.
Passing some of that along topatients, but we're applicable
or we're able to.
Sure.
There's just some thought thatneeds to go into that.
Dr. Michael Perusich (07:58):
Yeah, no, that's a great point.
The, those credit card feessneak up on you really fast and
they do mount up.
Another things that mount up arelittle things like supplies.
Do you use toilet paper andpaper towels and kleenex and
those kind of things in yourpractice?
Yeah.
You probably do.
So if we're gonna use aconsumable product, why don't we
buy in bulk so we can save somemoney?
(08:20):
I.
Maybe we need a Costcomembership or a Sam's Club
membership, or maybe just watchAmazon and, can we sign up for a
subscription program for paperproducts and get on, get them
cycling through the practice ona regular basis, number one.
But number two, can we si, canwe save some money by doing
that?
And you'd be shocked how muchmoney you can save by really
(08:41):
paying attention to those kindof things.
I
Dr. Alex Kallio (08:43):
said, it's one of those things that you don't
realize or necessarily noticethe 15 or$20 each, the time that
it happens, right?
But by the end of the year whenit's happened, even five or six
time in multiple categories, allof a sudden we're talking, you
talk thousands of dollars thatyou're, you've spent, that you
didn't even realize
Dr. Michael Perusich (09:02):
real quick.
Real quick.
Alright.
We gotta take another break hereand hear another message from
our sponsors.
But, so when we come back, Iwant to talk about creating a
mind shift in your practice andreally thinking about Profit
First.
So we'll be right back.
Kats Consultants (09:23):
Kats Chiropractic consultants, your
partner in chiropractic success.
We are dedicated with one-on-oneguidance to bring you all your
practice management needs.
Let's supercharge your practice.
Give us a call today.
Dr. Michael Perusich (09:50):
Everybody.
Welcome back to the KCChiroPulse podcast.
We're talking about managingoverhead, and Alex, we've talked
about some great things.
You know the fact that you can'tjust leave your expenses to
chance.
You have to manage it.
You can't just review yourexpenses once a year.
You've gotta manage it.
Probably every quarter you needa good accounting system.
You really need to have a goodaccountant as well, just helping
(10:13):
you manage those numbers.
But we need to be payingattention.
'cause there are things like andyou brought this up, Alex,
things like subscriptions thatjust kind yeah.
Sneak up on you and you set'emand forget'em and maybe have a
subscription to something you'repaying$49 a month for, which
doesn't sound like a lot ofmoney, but if you're not using
it, it's a lot of money.
Let's get rid of it.
Dr. Alex Kallio (10:33):
It's the piece of equipment that's sitting in
the room collecting dust, youknow that you're not, not using
or generating revenue with.
So we gotta look through allthat in the other spot I think
we, we forget about toosometimes is the personal
expenses that we will runthrough the business.
And have we overloaded that to apoint that it's a little out of
control or just, again, thingsthat, that.
(10:54):
Really shouldn't be there ornot.
And that's where having thataccountant comes in, being able
to have those conversations andend of the year, not just the
strategy of, oh, hey, you, yeah,you've, we need to buy some
equipment, or we need to do,that kind of thing.
Take some planning.
You need to have thoseconversations earlier than,
December 31st.
Dr. Michael Perusich (11:10):
And don't get too hung up on thinking
about the expense side of yourpractice.
We need to manage it.
We need to evaluate it.
But if you think about it toomuch, and I see this happen a
lot, then we start falling downthis curve of trying to manage
expenses and not managingprofits.
So we always have to have thatprofit first mentality in the
(11:31):
practice because if we don'thave profit, it doesn't matter
what our expenses are.
We're going down in flamesanyway.
That comes back to making surethat you have a good fee
strategy, making sure thatyou're covering your overhead
with your collections.
And it's not just your overhead,it's overhead plus some profit
in the practice.
'cause we want to be able togrow on the profit side.
(11:52):
Have we allocated enough in ourbudget for hidden things like
taxes that only come upperiodically?
Are we really watching theexpenses and making sure that,
if things are creeping up toomuch, can we find an alternative
way?
Like I talked about with thephone system can we find a
different methodology thatallows us to be more profitable?
(12:12):
But yeah, I love this quote, andI think it was Napoleon Hill
that said this.
What you think about comesabout.
I.
If we are constantly laboringover our expenses, so there's a
difference between laboring overit and managing them.
So if we're constantly thinking,oh my gosh, my overhead's too
high, how am I gonna pay forthis?
I gotta get our expenses down.
(12:32):
If you're constantly thinkingabout that, you'll never get
profits first.
You'll only think aboutexpenses.
And guess what?
The more you think aboutexpenses.
The more expenses incur.
Dr. Alex Kallio (12:43):
You think slope of the paralysis, by analysis
yeah, exactly.
If you go down that road tooheavy and get stuck there, yes.
We lose sight of the ultimategoal.
But we wanna make sure we have aPulsee on it.
We know where things arehappening and then pay attention
to the details.
Things we go back to, eventhings like nutrition products.
Have you changed your retailpricing on that?
(13:04):
If you're, the cost of all thosegoods goes up, at least usually
annually that you're buying,have you changed and raised your
prices right to match thoseincreases?
And it just little things likethat, again, that can add up
over time.
I.
Dr. Michael Perusich (13:16):
Very quickly.
Very quickly.
So go through your expenses.
What can you live without?
What can you replace with acheaper service?
For example talk to your yoursuppliers.
Can we buy in bulk and getthings cheaper?
Can we look at options withAmazon and Costco and places
like that just to get our.
(13:37):
Just to,
Dr. Alex Kallio (13:38):
Check your practice against things.
I've been amazed some of thestuff that I've, have always
ordered through certainsuppliers and as, as much as
maybe some people want tocomplain about Amazon, you can
find a lot of those thingssometimes cheaper, through that
service or through anothersupplier, that's out there.
Shop those things periodically.
Dr. Michael Perusich (13:56):
Talk to your suppliers about.
Analgesic.
If you offer analgesic in yourpractice, if you buy 20 cases of
it, do you get a huge pricebreak?
20 cases sounds like a lot, butI'm telling you, if you have
that much product in yourpractice, you're gonna move it
too.
So there's, it's a double-edgedsword.
So it's only are you savingmoney, but now you're more
profitable with it.
(14:16):
Pillows we used to buy pillows.
Buy.
I think we would buy four casesat a time of pillows.
I don't know, there's maybe 10pillows in a case, and we get a
huge discount on it.
Can I make more profit when Isell pillows now if I get a
discount on my order?
Absolutely.
Am I motivated to sell morepillows?
Absolutely.
I've got too many of'em in myoffice.
I gotta push'em.
(14:37):
We gotta get'em out the door.
So there's really a benefit tostocking up sometimes on things
like that, especially if it's aproduct that you sell or a
consumable that you use in theoffice.
Dr. Alex Kallio (14:48):
And an easy way to peek at that.
Just look back at your year, youknow how many did you sell last
year?
Were you ordering them five at atime?
Once a month.
And paying separate shipping, oneach one of those right over
your expenses.
Out where, okay, let's orderthat even, six months at a time
to, to have for that period.
You said you're probably end uprunning out at four months
because you are pushing themmore, making more profit on
(15:10):
that.
So it's just, again, think wethink outside the box of how
we've approached some of thisand approach it just a little
differently.
Yeah.
And that's where many times wecome in and helping to look at
that from a different angle thanwhat you maybe have thought of
on your own.
Dr. Michael Perusich (15:24):
Yeah.
And, having a great coach withwith business experience and
statistical analysis experienceand those kind of things is
really important for yourpractice because it is a lot to
manage sometimes, and that's oneof the great things that I think
we do for our clients is reallyhelping them.
I.
Manage the numbers.
We talk about stats all thetime, but it's also helping you
manage your profit and loss,helping you manage your
(15:45):
overhead, those kind of things.
Helping be a sounding board ifyou think you need to buy a
piece of equipment, okay, let'slook at the return on investment
that you might be able to get.
Is it worth it?
And so utilizing coaches in thatmanner where you have a sounding
board can really be beneficialand profitable to your practice.
Dr. Alex Kallio (16:04):
And we just had this discussion, yesterday with
somebody else of, do you knowthe metrics?
Do you know your, all the keypoints of, whether or not to buy
that equipment, to, buy all theextra stock kind of thing.
And that is again, where havingsomebody who's familiar in that
realm to help man, help guideyou down that road becomes so
important.
Dr. Michael Perusich (16:22):
Huge.
It's huge.
All right, Dr.
Alex, thanks for being on heretoday.
Great discussion about managingyour overhead.
Go check.
Check us out@Katsconsultants.com.
You can see all the great thingsthat we're doing to help clients
out there and maybe we can helpyou too.
Give us a call.
Alright, everybody, be sure tosubscribe and share our podcast.
We appreciate you tuning inevery week and we'll see you
(16:42):
next time.
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