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Pricing in the Dental Technician Sector in Bulgaria

We continually discuss new technologies, service improvements, and the introduction of novelties (not only in dentistry and dental technology but in every sector as a whole). However, how do all these advancements affect the prices of services, products, and items? Is there a legal framework or regulatory regulation that governs pricing in the dental technician sector in Bulgaria? What should the price of a product include? What influences the price of a dental technician product? Prices concern not only dental technicians but also dentists and patients. Although the topic of pricing is extremely delicate and of interest to everyone in the chain—from the supplier of consumables and materials to the client—it is less frequently discussed, and many questions remain unclear.

Is there a regulation for pricing in Bulgaria?

Bulgaria is a free market economy, meaning that enterprises are free to form the prices of the products or services they offer. This implies that there is no specific regulation that determines the price range. Bulgaria, being a member of the European Union, adheres to regulations that govern “unfair pricing” Looking from the perspective of dentistry and dental technology, several examples can illustrate this point. From a patient’s viewpoint, for instance, they should have free access to the pricing of dental products and dental services to make an informed choice of specialist objectively.

The choice, of course, can be influenced not only by price but also by the quality of the service, the location of the dental practice, personal recommendations, and other subjective factors. From the dental technicians’ perspective, they should have free access to the price lists of suppliers of consumables, materials, and goods. Dentists should have access to the prices of dental products. Implementing a discount for loyal customers, for example, falls within the scope of personalized pricing. Personalized pricing is not illegal, but the customer has the right to be informed.

Formation of price

Pricing formation is a critical aspect of running a successful business in the dental laboratory sector. The electronic book by AMOSYS titled “7 Steps to Turn Your Laboratory into a Successful Business,” which can be downloaded from here, discusses the “Budgeting” section. This section outlines the types of expenses to consider, divided into “fixed costs” – those not affected by the volume of activity, and “variable costs,” which are influenced by the volume.

Fixed costs include expenses such as rent, heating, salaries, and insurance, while variable costs include those for consumables, fuel, and others that are more easily influenced by price dynamics and the volume of activity.

How do we determine the price of the dental prosthetic?
  • Materials Used: Typically, the cost of materials is included in the price once they move from “storage” to the manufacturing of an ordered product. Before materials are used, they are considered part of the laboratory’s assets. There may be waste or lost value in case of defective materials or expiration, which should be included in the risk factor cost. It’s a good practice to use consumption norms for materials based on the type of product being made.
  • Quality Standards and Certification: To reduce costs, some may choose materials without the necessary documentation from countries outside the European Union. These prices are indeed lower, but it’s important to note that this could lead to violations of European regulations. Using low-quality or dubious materials increases the risk factor, often underestimated, and does not automatically translate to lower prices. Laboratory certification according to industry standards also leads to higher business expenses and affects product pricing.
  • Labor Costs: The experience and qualification of the dental technician, the number of technicians in the laboratory, and the complexity of the products and manufacturing activities largely determine salary expenses. Experienced dental technicians command higher salaries and can be relied upon for a high degree of customization and handling complex cases.
  • Order Fulfillment Time: Shorter deadlines require higher expenses, and accordingly, the price of the product increases. Laboratories may charge more for rapid services when adhering to strict deadlines. Discounts may be offered on bulk orders.
Other seldom-mentioned factors in the cost formation of dental technician products include:
  • Costs for Material and Intangible Assets: Whether the premises and equipment have been purchased outright or are being leased every month affect costs. Utilities such as electricity, water, and household consumables like cleaning agents, gloves, etc., are distributed across the volume of products produced.
  • Warranty and After-sales Service: In cases of defects and the need for repairs, if a dental technician offers warranties for their products or provides after-sales service, this can reflect on the prices. In countries like Germany, for example, the risk factor—such as the risk of damage to the product during manufacture or some other production defect—is also included in the price of the dental product.
  • Technologies and Equipment: Dental laboratories that use modern technologies and equipment may initially have higher prices due to higher investment and maintenance costs of technological solutions. However, in the long term, this could reduce costs due to time savings, greater precision (i.e., fewer errors), and better competitiveness. Depreciation of equipment and subsequent repair activities are included in the product prices.
  • Geographic Location: In Bulgaria, the prices for dental technician products can vary depending on regional differences in the standard of living. In larger cities, the rent for premises and competition can be greater, which can also influence pricing. In smaller towns, where the market is not as large, and there are fewer specialists, prices will vary more. However, choosing products from another city would also require including the logistic cost.
  • Advertising: Expenses for advertising—online or through brochures, flyers, and others, website maintenance, and other variable costs, should also be accounted for.
P.S. “The Other Factors” and the ensuing discussion on pricing:

However, the discussion remains open as to whether dental laboratories have the opportunity to offer commercial discounts upon reaching a certain volume of orders for a month/year from a client dental practice. Are there any regulations in place, and what does actual practice show? Are there projects in which a dental laboratory can participate to finance a part of its activity, such as modernizing the technologies used? What other factors would you add that have influenced or you believe can influence your activity and accordingly prices?

Leave your comments and become part of the discussion! Share your experience and gain insights from your fellow dental technicians!

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