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Practice by Numbers · B2B · software for dental practices

Add analytics on top of the software dentists already use, not replace it

Became the wedge for the later all-in-one platform

Workedintegrations-marketplacespositioning-niche

What they did

Instead of replacing the dental PMS, sit on top of it: pull data from the PMS (Dentrix, Open Dental etc.), QuickBooks, phones and Google Analytics into business/revenue analytics that existed in medical but not dental. Integrate only with the five dominant PMS vendors, which cover the 70-80K target offices, rather than long-tail systems.

What happened

Became the wedge for the later all-in-one platform

In their words

How He Bootstrapped Dental Software to $16m

Play from 2:10

… acceptance, for example? What's going on? Is my sudden marketing working or not? Or am I spending money in the right place? Is my hygienist doing the right thing? There's a lot of little, little, little things that a business owner, like a dentist who's never really trained to be a business owner, they have to make all these decisions that they can't. And they don't have the right data. They don't have the right skills to make those decisions.

2:10

And that's what she would come to me. And I would run stretch sheets and I would run, you know, SQL queries for her in the database in the backend and try to figure out, give her answers. Which of these solutions did you build first? I'm sharing your website right now. The numbers part was built first, right? And the whole business analytics was built first, right? Business analytics, the practice IQ portion of it, the revenue analytics, be able to mine the data. This exists very heavily in the medical space. It just didn't in the dental space. So we built that on the dental space side.

2:41

What databases were you mining for data or what other tools in the space were you trying to connect with APIs and webhooks so that your wife could put together these dashboards? It's their PMS, their practice management systems, to be able to bring out all the information from their practice management system, from their QuickBooks, from the phones, from the Google Analytics. You try to bring this 360 degree view of the practice to understand …

… just can't move at the speed at which we can move. They don't have the technical skills or even the people to be able to build software the way we can. So one of the ways that I try to understand is someone truly the integrator of data in their space. So I just go to their footer or I go to their integrations page and I see how many they have listed. You only have five listed here. Do you actually have a lot more that you're just not listing?

5:48

So dentistry, even though it's quite fragmented, it is dominated by the five that we have listed. You could go integrate with somebody who has like a thousand locations. that doesn't really move the needle. So that's what we are focusing on right now is to get 70,000, 80,000 dental offices covered. What's the average dental practice paying you today? So at this point, we are reaching about $12,000, $13,000. And that's the average. Per year? Yes, per year. And some people reach almost all the way to like $17,000, $18,000.

6:23

Some customers who are paying us $100,000, right? So I'm talking about per location. And some customers have one location. Some customers have 40 locations. Okay. So your largest customer would be 40 locations times 18,000 per year, which would be 720,000 per year just from that one customer. Is that right? Not quite. Our largest customer is about 250,000 because they don't have all the features, right? Because you can build your package …

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Tags: analytics-wedge, system-of-record-layer, pms-integration, vertical-saas