Cheaper laboratory — what delays and reworks truly cost

Laboratory A: mills a crown for 180 PLN. Laboratory B: for 220 PLN. Difference: 40 PLN per unit. For 100 cases annually: a savings of 4000 PLN if choosing Laboratory A.

But wait. Laboratory A has a higher percentage of reworks. Laboratory B — lower. How much does it really cost?

TCO — Total Cost of Ownership of a laboratory

A laboratory's TCO is not just the price per unit (crown). It's the total cost of cooperation, including:

1. Basic cost of work — of course.

2. Rework costs — both the second job (which the laboratory performs for free), and the practice's operating costs (chair time, assistant's time, schedule).

3. Second try-in costs — if the first work doesn't fit, the patient has to return.

4. Delay costs — lost revenue from cancelled appointments, schedule destabilization, patient stress.

5. Communication costs — amount of assistant's time on calls with the laboratory (reworks, status, questions).

With full TCO — a laboratory that is cheaper on the price list may turn out to be more expensive overall.

Comparative model: Laboratory A vs Laboratory B

Laboratory A (cheaper) — parameters

Price per crown: 180 PLN.

Percentage of cases requiring reworks: 25%.

Percentage of cases requiring a second try-in: 15%.

Percentage of cases with delays (>5 days): 10%.

Communication time per patient (average): 8 minutes.

Laboratory B (more expensive) — parameters

Price per crown: 220 PLN.

Percentage of cases requiring reworks: 2%.

Percentage of cases requiring a second try-in: 1%.

Percentage of cases with delays (>5 days): 0.5%.

Communication time per patient (average): 2 minutes.

Breaking down additional costs for each laboratory

Costs of reworks and second try-ins

Laboratory A:

For 100 crowns annually:

— 25 cases requiring reworks × 645 PLN (cost of one rework from our article) = 16,125 PLN.

— 15 cases requiring a second try-in × 130 PLN = 1,950 PLN.

— 10 cases with delays × 500 PLN (lost revenue from appointment) = 5,000 PLN.

— Communication: 100 × 8 min × 0.83 PLN/min = 664 PLN.

Total additional costs: 16,125 + 1,950 + 5,000 + 664 = 23,739 PLN.

Laboratory B:

— 2 cases requiring reworks × 645 PLN = 1,290 PLN.

— 1 case requiring a second try-in × 130 PLN = 130 PLN.

— 0.5 case with delays × 500 PLN = 250 PLN.

— Communication: 100 × 2 min × 0.83 PLN/min = 166 PLN.

Total additional costs: 1,290 + 130 + 250 + 166 = 1,836 PLN.

Total cost comparison: Lab A vs Lab B

Laboratory A:

— Basic cost: 100 × 180 = 18,000 PLN.

— Additional costs: 23,739 PLN.

— Total cost: 41,739 PLN.

— Average cost per crown: 417 PLN.

Laboratory B:

— Basic cost: 100 × 220 = 22,000 PLN.

— Additional costs: 1,836 PLN.

— Total cost: 23,836 PLN.

— Average cost per crown: 238 PLN.

Difference: Laboratory B is cheaper by 41,739 — 23,836 = 17,903 PLN annually, which is ~179 PLN per crown!

The initial impression (Laboratory A cheaper by 40 PLN per crown) turns out to be an illusion. Taking TCO into account — the cheaper laboratory costs you almost 180 PLN more per unit.

Advice: how to choose a laboratory

1. Don't look at the price per unit. Calculate TCO: when does the laboratory ship on time? What percentage of cases require reworks? How much time does the assistant spend on the phone?

2. Ask for statistics. How many cases require reworks? What is the on-time percentage? How much time does communication take? A laboratory that is unwilling to provide these numbers — you already know something about its quality.

3. Do a pilot. Before transferring all production — send 10–20 test cases. Measure the percentage of reworks, communication time, on-time delivery. Calculate the TCO for these 20 cases. Extrapolate for a year.

4. Look for a laboratory with a digital protocol. A laboratory with PID (Protocol of Ideal Fit) has a higher cost per unit, but the TCO is usually the lowest. Digital verification eliminates guesswork and chaos.

With these parameters, switching from a Type A laboratory to a Type B could mean savings of around 18,000 PLN annually — solely on operating costs.