Practice by Numbers · B2B · software for dental practices
Call existing customers to switch their card payments to you for a cut
~$190M processed of ~$2B possible; profitable but switching is hard
What they did
What happened
In their words
How He Bootstrapped Dental Software to $16m
… this point. And as the number of locations grow, that GMV opportunity also grows. How do you know the opportunity is $2 billion? Because we are able to look at what their collections is, right? And we are able to figure that math out to say, hey, this is the number of locations. This is the average number of collections per location. We have to do a little bit of fuzzy math because not all the money is GMB because a lot of the money is coming in
from insurance carriers. So they come in as a check- Medicare, Medicaid. Right? Because it doesn't, it's not quite gets run through the credit card terminal. Are you installing the physical credit card terminals or do you use third-party software, I mean, hardware with your software installed? So we are working with companies like Adyen and Stripe. And so we do install the credit card terminal through them. And we have a take rate through Adyen and Stripe. And it's quite profitable. The 1.8 billion of GMV that you see on your system that you're not processing directly
yet, you're only processing 200 million, you said. How are they currently processing it? And how do you get them to switch over to you? It's an upsell motion. We are strapped for resources. So we're trying to hire the right people so we can actually drive that upsell to be able to call these offices because the offices are on autopilot, right? They have whatever they have through Costco or through Bank of America. And they're really not super interested in switching unless you show them the value. And there's significant value having integrated payments, right? Because we can do card on file,
You can become PCI compliant. You can do payment plans. There's a lot of value in being integrated, but getting through and making them switch is the hardest. And then change management in the small business is the hardest thing to do. How many individual customers, not locations, but the top level customers are you working with today? So the top level customers, we have about 13 to 1400 top level customers. Okay. And that represents what, about …
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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
- Grow one tool into an all-in-one suite sold as packages~$12-13K per location a year on average; up to ~$18-19K
- 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: embedded-payments, take-rate, installed-base-upsell