In the dental equipment industry, prices are generally not published. This makes it difficult for the dental practices to make price/value estimates when considering buying a new unit.
The market transparency is further obscured by an unhealthy discounting and campaign tradition – going up to as much as 20 or even 30% discount.
Of course, these discounts are not real. Nobody can do decent business while depending on such discounts. Both distributors and manufacturer must maintain a reasonable earning to be able to provide adequate service to the customers and to continuously develop their products and services. The Corona pandemic has decreased profitability in the dental practices due to stricter cross infection precautions in combination with fewer patients.
To address both above issues XO CARE decided in 2020 to decrease the suggested retail prices on XO FLEX units with about 25%. The price of a standard unit was decreased from about € 48.000[1] to about € 35.000! Gross margin reductions at both XO CARE and the XO Partners were necessary to realize this big price reduction.
At the same time volume discounts were introduced for dental practiced that would increase profitability by investing in more than one unit.
[1] Suggested retail prices from factory in Denmark without VAT, installation and freight
[2] See https://www.xo-care.com/products/xo-flex-2020/price-configurator/
Let’s talk about money!
To increase transparency about unit prices, the XO Price Configurator has been published on xo-care.com[2].
The newly published net prices are the “real” prices. Hence, dental practices should not expect to obtain discounts!
That is except for volume discounts when one end-customer invests in more than one XO unit:
We think that this new – unique – transparent pricing is an advantage for everybody:
- The end customer – who can make a true value/price consideration
- The XO Partners – who can maintain a decent gross profit and still have competitive pricing
- XO CARE – now earning less money per sold unit – but in general increase the profit due to a significantly increased sale volume
XO Price Configurator
Try it out for yourself – follow this link to the XO Price Configurator!