Your Overhead Is 62%. Industry Average Is 58%. Here's Why You're Bleeding Money.

Your Overhead Is 62%. Industry Average Is 58%. Here's Why You're Bleeding Money.

Labor costs are eating practices alive. DSOs are reporting 35-40% labor as a percentage of production. Independents are hitting 45-50% because they don't have purchasing scale. Rent alone runs 8-12% in most markets.

If you're above 65% overhead, you're not managing supply costs or staffing efficiency. Most practices waste 6-10% on redundant software, unused vendor contracts, and overstaffing slow periods.

Do an overhead audit now. Cut one software subscription, negotiate supplies with a new vendor, and right-size your team to production hours. A 3-5% overhead reduction on $800K production is $24K-40K in pure profit. That's an associate's salary. That's a new chair. That's real money.