4 ways to cut dental supply costs and stay competitive

Your dental supply chain can help you strike the critical balance between profitability and competitiveness in the marketplace. Are you taking advantage of all the available opportunities to reduce your dental supply costs? 

In a Health Policy Institute (HPI) survey that examined challenges facing dental practices in 2024, rising overhead costs ranked in the top three.¹ Higher costs can force practices to increase fees, which jeopardizes their market competitiveness. But this can be avoided by managing certain overheads. While overhead costs include day-to-day fixed costs like your rent or mortgage, they also include variable costs such as the supplies you buy. This is where you can achieve cost savings.

Four strategies to manage your dental supply costs

Digital is the most efficient procurement method for dental products. Digital procurement enables service and price comparisons across multiple vendors without the legwork. It’s no secret there are price disparities between dental supply companies, and what you pay for an item depends greatly on where you source it from.

Finding a supplier that offers lower prices for the same dental products is a critical cost-saving strategy. But that’s just one. If you implement these additional four strategies, you’ll be well on your way to cutting your dental supply costs, becoming more competitive, and boosting your bottom line.

1. Set a specific and measurable dental supply budget.

While your monthly dental supply requirements may seem like a moving target based on the type and number of appointments scheduled, there is a budgetary benchmark that could work for your practice. The ADA suggests allocating “up to 6% of the prior month’s collections to dental supplies and inventory.”² Others have suggested up to 8%. The key is to set a budgetary ceiling for your business and hold all stakeholders to it. When practices have several hands that place orders, setting a dental supply budget that keeps costs below your critical threshold will help you protect profitability and remain competitive. 

2. Take all dental supply costs into account.

The cheapest option is not always the best. For example, finding a great price for nitrile gloves on a marketplace website may solve one particular need, but a busy dental practice has a multitude of needs. Additionally, there are many more costs involved in purchasing those gloves beyond price. Consider factors such as shipping costs, hours spent shopping and tracking shipments, and the risk of receiving factory seconds or knockoffs for that “great” price. 

Partnering with a dental-only supplier that consolidates your needs into one shop can streamline your workflow and reduce overhead. Look for a partner that offers competitive pricing, free shipping, and personalized support. A dedicated rep with real dental expertise can add surprising value, helping you avoid stockouts, identify smart substitutions, and make purchasing decisions with confidence.

3. Reduce your dental supply wastage rate.

Your dental supply wastage rate contributes to both budgetary and environmental waste. It refers to the number of supplies that are damaged, expired, spoiled, left over, or no longer needed and thus discarded. Proper inventory management—from ordering to storage to disposal—will reduce unnecessary waste and help you achieve that critical balance between inventory on hand and healthy cashflow. It will also eliminate the dreaded out of stocks that can disrupt appointments and negatively impact patient satisfaction.

4. Avoid complacency and check in on your dental supplier.

It’s easy to grow complacent with your preferred dental supplier while prices creep up and service levels decline. Take time to benchmark the market—ask colleagues what’s working for them, review competitor pricing, and evaluate whether your current vendor is still delivering value. Proven alternatives may offer fresher approaches, better digital tools, and responsive service designed to meet the realities of modern dental practice.

The bottom line

Managing dental supplies wisely isn’t just about saving money—it’s about running a more agile, future-ready practice. Whether you're reevaluating vendors, exploring digital procurement, or simply setting clearer inventory goals, now is the time to build a more strategic approach. Your bottom line—and your patients—will thank you.

Editor's note: This article appeared in the July 2025 print edition of RDH magazine. Dental hygienists in North America are eligible for a complimentary print subscription. Sign up here.

References

1. Economic outlook and emerging issues in dentistry. Insights from data from December 2023, released in 2024. Health Policy Institute. Accessed April 22, 2025. https://www.ada.org/resources/research/health-policy-institute/economic-outlook-and-emerging-issues

2. Dental supplies – inventory control. American Dental Association. Accessed April 22, 2025. https://www.ada.org/resources/practice/practice-management/dental-supplies-inventory-control