When “Generosity” Costs You More Than You Think
Before we dive in, let me make one thing clear:
This example is about a dental practice—but the lesson applies toeveryservice-based business on the planet.
If you deliver expertise, time, skill, or labor… this is for you.
And it’s not just for owners.
Your entire team needs to understand this concept so they grasp the why, the impact, and thevalue behind the work they do.
When people understand the math, they instantly start valuing their worth.
The Hidden Cost of “Free” in a Service Business
A patient pushes for a discount.
A loyal patient expects “special treatment.”
Someone raises their voice.
Or someone in your dental office just wants to be “nice.”
It feels small in the moment.
But the math says otherwise.
In retail, they call thisshrink—loss, damage, or theft.
Every lost unit requiresmultiplenew units sold just to get back to even.
Service businesses follow the same rule… except the financial impact is even more severe.
The Actual Math (Where the Wake-Up Call Happens)
Let’s use a common example:
A$1,500 treatment fee.
After insurance write-offs, typical collection:70%→$1,050
Overhead:60%→ operational cost per treatment:$630
Profit per paying treatment:$420
Now… what happens when you give that treatment away for free?
You collect$0, but still eat the$630in overhead.
And you lose the$420in profit youshouldhave earned.
Total financial loss:
630+420=1,050630 + 420 = 1{,}050630+420=1,050
To recover that $1,050, you need profit-producing appointments.
Each paying treatment generates$420in profit.
1,050÷420=2.51{,}050 \div 420 = 2.5 1,050÷420=2.5
Round up (because you can’t see half a patient):
👉You need three additional full-fee treatments just to get back to zero.
But here’s the part nobody thinks about…
**Giving away one treatment means you effectively worked FOUR treatment appointments…
…to net $0.**
1 free treatment (loss)
3 paid treatments (recovery)
=4 appointments
=$0 in net gain
You traded four units of work for zero progress.
If your team understood this, discounting would disappear overnight.
Why Your Team Needs to Understand This
In every service business—dental, legal, real estate, consulting, HVAC, hospitality—you’ll find:
People who believe prices are negotiable
People who try to guilt their way into discounts
People who pressure your staff
People who simply don’t understand your costs or expertise
If your team doesn’t know the math, they will say “yes” when they should say “no,” simply because they’re trying to be helpful.
Teaching this perspective creates:
Stronger boundaries
Better confidence
Higher perceived value
A team that protects the business instead of accidentally draining it
Understanding value is the first step to defending it.
Generosity Is Powerful—When It’s Intentional
Let me be very clear:
I’m not telling you to stop helping people.
In fact, I fully supportstrategic generosity.
Helping someone who is truly in need—someone dealing with circumstances beyond their control—creates goodwill, gratitude, and community impact.
That kind of generosity feeds energy back into the practice.
But giving away treatment because someone pushes hard enough?
That’s fear.
And fear is the most expensive discount you’ll ever give.
The Part Most Owners Never See
When I ask dental offices to run their discount and write-off reports patient by patient, I routinely see:
$50,000… $100,000… and even $200,000+given away annually.
For many practices, that means:
Severalweeksof labor essentially performed for free
And for some, nearlytwo monthsof the year given away
And that’s just thedirect loss.
Now that you understand thatone free treatment requires THREE paid treatments just to recover, let me ask you:
What does the real number look like when you apply that multiplier to $50,000… $100,000… or even $200,000 a year?
The answer is staggering.
And completely preventable.
One More Question for You
If you're ready to stop trading four units of work for zero gain…
If you're ready to eliminate fear-based discounting…
If you're ready to build a team that understands value and defends your worth…
Then the only real question left is this:
Are you ready to change your freedom and your future—starting now?
If the answer is yes, it’s time we talk.
