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To: Swordmaker
Let me put it this way. . . seeing as how your Freepname has a DR. to begin it, I will assume you are in the medical field. Let's further assume you have 1000 patients. The cost to bring a new patient in the door is $200 in advertising, outreach, patient spiffs, etc. That gets you 1001 patients. Cost, $200. To double your patient load,

However, to double your patient load to 2000 patients, you will have to increase your advertising, patient outreach, really up your game. . . and it may actually cost you a lot more to get to 4000 patients in advertising costs. However, your office expenses don't necessarily go up to service those patients. However, your per patient cost to bring them in the door went up to $250 because of the increase in all the effort you put in to double your patient load. Cost to get that extra 1000 patients was $250,000 . . .

One patient = $200 and little effort.

1000 patients = $250,000 and a lot of effort.

Do you see?

Now suppose you only had ONE patient. It still costs $200 to bring a new patient in the door. But you DOUBLED your patient load for $200. . . and you can perhaps do it in one day.

If you had 1000 patients, it would cost you $250,000 to DOUBLE your patient load. . . and it may take you a year or two.

That's the law of Large Numbers.

35 posted on 02/09/2015 11:13:46 PM PST by Swordmaker (This tag line is a Microsoft insult free zone... but if the insults to Mac users contnue...)
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To: Swordmaker
Let me put it this way. . . seeing as how your Freepname has a DR. to begin it, I will assume you are in the medical field.

BAAANNNNNKKKKK! I am Doctor of Philosophy! In Physics! As I explained some years ago on this forum, this was an appellation assigned to me by a coworker, circa 1980, which was meant as a sort of a dig, but I liked it.

One patient = $200 and little effort.

1000 patients = $250,000 and a lot of effort.

Do you see?

Yeah, I see! $200/patient vs. $250/patient ... the Law of diminishing returns as expressed in patients per dollar !

37 posted on 02/09/2015 11:29:32 PM PST by dr_lew
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