Practice by Numbers · B2B · software for dental practices
Grow one tool into an all-in-one suite sold as packages
~$12-13K per location a year on average; up to ~$18-19K
What they did
What happened
In their words
How He Bootstrapped Dental Software to $16m
… analytics, the depth of... Now, obviously, practice by numbers is not just an analytic system anymore, right? Because what it is, is an all-in-one system, because we cover all the white space, right? So think about it this way. A dental office would have a PMS, right? A dentrix or an open metal. They would have an analytic system, maybe in the last 10 years, then they would have online booking system. They would have form intake. They would have
a phone like a VoIP, like a Nextiva or a Vonage. They would have a payment POS terminal. They would have websites. So what we're trying to get done is take all that white space and give them a practice in the box. Sit on top of the PMS and then give them everything. And that's what PBN has built out now. And now what PBN is doing from this point on is trying to add all the AR. So being able to, so for example, the phones, every single phone gets recorded, transcribed. We understand what their intent is,
what their sentiment was. And then the AR receptionist is going to come out. So what we, the speed at which we move. So the question for you that you asked is, how come these dentrics and open up? Because they 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 …
… 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.
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 accordingly. You can layer on voice. You can layer on AI. You can layer on payments.
as you keep layering on everything, you get to about $18,000, $18,000, $19,000. Do you have an upsell motion that's tied to jobs that you're actually doing for the dental offices? You know, number of intake forms completed, number of new customers, number of phone calls resolved, things like that. No, we are not charging outcome-based in terms of number of events. That's an interesting thought. We have not really thought about it. I don't know if …
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More from this episode
- Grow on dentist referrals, great support and a few trade showsARR ~$2M -> $12.5M from 2021 to 2025
- Stay bootstrapped and grow 35-40% a year instead of buying revenue$12.5M ARR, 22-24% EBITDA, ~$1.5M free cash flow in 2025
- Add analytics on top of the software dentists already use, not replace itBecame the wedge for the later all-in-one platform
- Call existing customers to switch their card payments to you for a cut~$190M processed of ~$2B possible; profitable but switching is hard
- Charge a percentage of the practice's revenue instead of per-feature fees
- Answer a real business owner's data questions by hand before building
Tags: all-in-one, modular-packages, platform-expansion