The amount you spend on supplies can vary depending on the size of your practice, your team, the procedures you offer, and the number of patients you see.
Budgets are crucial to running a successful dental practice, but are you spending too much on supplies?
As a practice owner, you know supplies are a critical part of providing quality patient care. However, it can be difficult to work out how much you should be spending on supplies, and when you’re spending too much.
Unfortunately, there isn’t a one-size-fits-all answer to this. The amount you spend can vary depending on the size of your practice, the specialism of your dentists, the procedures you offer, and the number of patients you see.
That said, there are some general guidelines you can follow to work out whether you’re overspending on dental supplies.
Firstly, it’s worth establishing a budget for dental supplies based on the practice’s actual needs. This budget should be reviewed periodically to make sure it’s still reasonable and realistic. One way to avoid overspending is to review pricing and products regularly, but be careful not to sacrifice quality for a lower price.
How much should I be spending on supplies?
The answer depends largely on the size of your practice, and it’s worth looking at lab and general dental supplies separately.
According to Christie’s Dental Report¹, lab spend sat at around 9% of revenue before the pandemic and has since risen to an average of 15%. This increase is largely down to suppliers raising prices to cover rising labour and shipping costs, along with higher raw material costs for manufacturers.
General dental supplies (excluding lab) make up a smaller share of turnover, currently averaging around 6% for the typical practice in 2026.
While these reflect current market averages, they shouldn’t be taken as the norm. Dental group purchasing organisations (GPOs) like Dentstock are helping members bring general supply spend down below 4.5%, and in many cases below 4%.
Budgeting for supplies
Suppliers don’t typically offer discounts to individual practices simply for buying in bulk. Instead, they offer better terms to organisations with genuine purchasing power, such as a GPO. One of the most effective ways to reduce costs is to make use of that collective buying power.
Many dental supply companies offer discounts for larger orders, which can be a cost-effective way to buy what you need. A GPO negotiates these deals on your behalf.
It’s also essential to keep track of inventory levels, so you avoid over-ordering or under-ordering. Ordering too much leads to waste, while ordering too little can cause shortages and delays in patient care.
While reviewing your inventory, look for supplies you can cut back on or remove altogether. Identify what’s genuinely essential to your practice.
Go back through the past year’s expenses. This will help you understand how much your practice has actually been spending on supplies, and how often you’re purchasing items.
Set a spending target for the year ahead. Make it realistic, taking into account anything that might affect your practice’s finances, such as new hires or a growing diary. Keep monitoring your expenses regularly to make sure you’re staying within budget, and adjust it where needed, since your practice’s finances or supply needs may change unexpectedly.
So, am I spending too much?
Ultimately, there’s no fixed amount that every dental practice should spend on supplies. But by setting a budget, comparing prices, buying in bulk where sensible, tracking inventory levels, and using digital tools to manage stock, your practice can avoid overspending.
While there’s no single target figure, since every practice is different, it’s worth setting yourself a goal. General supply spend has moved from around 5% to between 6% and 7% of turnover for the average practice, but realistically, most practices should be aiming for between 3.5% and 4.5%. Dentstock can help you get there by negotiating better prices on your behalf.
Stay mindful of your spending on supplies, and build a budget around your practice’s actual needs. Make use of collective purchasing power, compare prices, track inventory, and use digital tools to manage stock so you avoid overspending. By following these steps, your practice can strike the right balance between quality patient care and well-managed costs.
1. Christie’s Dental Report,2024 ,link
