Dentaltown July 2020 - 30

Dr. Howard Farran: What would you say the median cost is for other sensors?
RH: Between the three primary players-Dexis, Schick and Carestream-the median
is about $8,500. When we were doing cost analysis and market mapping before getting
into this new business, it was crazy to see how close they had all hovered around that
protected price.
HF: Those three companies probably make up 80% of the U.S. X-ray market. Where
did you get the cojones to compete with the biggest 400-pound gorillas in all of dentistry?
RH: The vast majority of the dental market-85%-uses digital X-rays of some
shape or form. They paid $20,000-$30,000 to get their system installed, then they paid
for warranties for several years that were $1,500-$2,500 a year, but they didn't need
replacements, they didn't get software updates and they never called support, so they asked
themselves, "Why am I paying all this money?" Then the sensor fails after they've dropped
the warranty, and they realize why they paid the money-because now they're looking at
another $8,000-$10,000 bill. This model is prevalent throughout the market, so they're
frustrated by the money they're spending. They know that the parts to this sensor cost
$1,000, not $10, and the markup may be exorbitant.
We know how to make sensors and we don't have to ship out all that work-we do it
all in-house in San Jose, California-so we knew we could construct a model that didn't
have those layers of cost. ... We don't have huge operating and overhead expenses, which
gives us the ability to price down.
The idea behind the subscription is that the idea of sensor ownership is an illusion. I'll
get into this discussion often with doctors who want to talk about whether this arrangement
is a lease. I tell them, "I get it, I like to buy my cars-the difference is, when I'm done
paying for my car and my extended warranties come to an end, if something fails with the
car, I can have someone get it fi xed for a relatively inexpensive price." That's not the case
with digital X-ray sensors: Once they're dead, they're dead.
Across the industry, dental offices are starting to realize, "I'd much prefer a low
investment and I never have to worry about sensors again." It's kind of like when you
bought film: You didn't know how much you bought, but you knew it had to have it, and
it was a consumable with a per-patient kind of cost.
Now, instead of your capital expenditure dollars going toward sensors, why not spend
them on real capital expense items and let us handle your sensors? We plug right into
every major software-we know dental offices don't want to change their software-so
you could literally call us up, give us $1,999 and we send you the sensor, the key software,
we log in, we do all the installation and calibration so you maximize your image quality.
We make this kind of a no-brainer: Why would you spend $10,000 when you could
spend $2,000, and if you've got to pay for a warranty anyway, why not just have it on a
subscription and not worry about it?
HF: Wall Street is just in love with subscription models. I mean, they were valuing
Netflix the same as Disney just because it had that guaranteed monthly subscription; now
Amazon does it yearly. So, there's a $1,999 one-time setup fee-then how much a month?
RH: It's $139 a month. During that term, they get phone support, updates, and sensors
replaced if they fail. There's no deductible or additional warranty fee, because they're on

30

JULY 2020 // dentaltown.com

DT0720_JazzImaging-Podcast_AG.indd 30

6/22/20 12:19 PM


http://www.dentaltown.com

Dentaltown July 2020

Table of Contents for the Digital Edition of Dentaltown July 2020

Dentaltown July 2020 - Intro
Dentaltown July 2020 - Cover1
Dentaltown July 2020 - Cover2
Dentaltown July 2020 - 1
Dentaltown July 2020 - 2
Dentaltown July 2020 - 3
Dentaltown July 2020 - 4
Dentaltown July 2020 - 5
Dentaltown July 2020 - 6
Dentaltown July 2020 - 7
Dentaltown July 2020 - 8
Dentaltown July 2020 - 9
Dentaltown July 2020 - 10
Dentaltown July 2020 - 11
Dentaltown July 2020 - 12
Dentaltown July 2020 - 13
Dentaltown July 2020 - 14
Dentaltown July 2020 - 15
Dentaltown July 2020 - 16
Dentaltown July 2020 - 17
Dentaltown July 2020 - 18
Dentaltown July 2020 - 19
Dentaltown July 2020 - 20
Dentaltown July 2020 - 21
Dentaltown July 2020 - 22
Dentaltown July 2020 - 23
Dentaltown July 2020 - 24
Dentaltown July 2020 - 25
Dentaltown July 2020 - 26
Dentaltown July 2020 - 27
Dentaltown July 2020 - 28
Dentaltown July 2020 - 29
Dentaltown July 2020 - 30
Dentaltown July 2020 - 31
Dentaltown July 2020 - 32
Dentaltown July 2020 - 33
Dentaltown July 2020 - 34
Dentaltown July 2020 - 35
Dentaltown July 2020 - 36
Dentaltown July 2020 - 37
Dentaltown July 2020 - 38
Dentaltown July 2020 - 39
Dentaltown July 2020 - 40
Dentaltown July 2020 - 41
Dentaltown July 2020 - 42
Dentaltown July 2020 - 43
Dentaltown July 2020 - 44
Dentaltown July 2020 - 45
Dentaltown July 2020 - 46
Dentaltown July 2020 - 47
Dentaltown July 2020 - 48
Dentaltown July 2020 - 49
Dentaltown July 2020 - 50
Dentaltown July 2020 - 51
Dentaltown July 2020 - 52
Dentaltown July 2020 - 53
Dentaltown July 2020 - 54
Dentaltown July 2020 - 55
Dentaltown July 2020 - 56
Dentaltown July 2020 - 57
Dentaltown July 2020 - 58
Dentaltown July 2020 - 59
Dentaltown July 2020 - 60
Dentaltown July 2020 - 61
Dentaltown July 2020 - 62
Dentaltown July 2020 - 63
Dentaltown July 2020 - 64
Dentaltown July 2020 - Cover3
Dentaltown July 2020 - Cover4
https://www.nxtbook.com/farran/dentaltown/2020NewGrad
https://www.nxtbook.com/farran/dentaltown/2020October
https://www.nxtbook.com/farran/dentaltown/2020September
https://www.nxtbook.com/farran/dentaltown/2020August
https://www.nxtbook.com/farran/dentaltown/2020July
https://www.nxtbook.com/farran/dentaltown/2020June
https://www.nxtbook.com/farran/dentaltown/2020May
https://www.nxtbook.com/farran/dentaltown/2020April
https://www.nxtbook.com/farran/dentaltown/2020March
https://www.nxtbook.com/farran/dentaltown/2020February
https://www.nxtbook.com/farran/dentaltown/2020January
https://www.nxtbook.com/farran/dentaltown/2019December
https://www.nxtbook.com/farran/dentaltown/2019November
https://www.nxtbook.com/farran/dentaltownuk/2019OctoberNovember
https://www.nxtbook.com/farran/dentaltown/2019October
https://www.nxtbook.com/farran/dentaltown/2019NewGrad
https://www.nxtbook.com/farran/dentaltown/2019September
https://www.nxtbook.com/farran/dentaltown/2019August
https://www.nxtbook.com/farran/dentaltown/2019July
https://www.nxtbook.com/farran/dentaltownuk/2019JuneJuly
https://www.nxtbook.com/farran/dentaltown/2019June
https://www.nxtbook.com/farran/dentaltown/2019May
https://www.nxtbook.com/farran/dentaltownuk/2019AprilMay
https://www.nxtbook.com/farran/dentaltown/2019April
https://www.nxtbook.com/farran/dentaltown/2019March
https://www.nxtbook.com/farran/dentaltown/2019February
https://www.nxtbook.com/farran/dentaltownuk/2019FebruaryMarch
https://www.nxtbook.com/farran/dentaltown/2019January
https://www.nxtbook.com/farran/dentaltownuk/2018Winter
https://www.nxtbook.com/farran/dentaltown/2018December
https://www.nxtbook.com/farran/dentaltown/2018November
https://www.nxtbook.com/farran/dentaltownuk/2018November
https://www.nxtbook.com/farran/dentaltown/2018October
https://www.nxtbook.com/farran/dentaltownuk/2018October
https://www.nxtbook.com/farran/dentaltown/2018NewGrad
https://www.nxtbook.com/farran/dentaltown/2018September
https://www.nxtbook.com/farran/dentaltownuk/2018September
https://www.nxtbook.com/farran/dentaltown/2018August
https://www.nxtbook.com/farran/dentaltownuk/2018July
https://www.nxtbook.com/farran/dentaltown/2018July
https://www.nxtbook.com/farran/dentaltownuk/2018June
https://www.nxtbook.com/farran/dentaltown/2018June
https://www.nxtbook.com/farran/dentaltownuk/2018May
https://www.nxtbook.com/farran/dentaltown/2018May
https://www.nxtbook.com/farran/dentaltownuk/2018April
https://www.nxtbook.com/farran/dentaltown/2018April
https://www.nxtbook.com/farran/dentaltown/2018March
https://www.nxtbook.com/farran/dentaltownuk/2018March
https://www.nxtbook.com/farran/dentaltown/2018February
https://www.nxtbook.com/farran/dentaltownuk/2018February
https://www.nxtbook.com/farran/dentaltown/2018January
https://www.nxtbook.com/farran/dentaltown/2017December
https://www.nxtbook.com/farran/dentaltownuk/2017Winter
https://www.nxtbook.com/farran/dentaltown/2017November
https://www.nxtbook.com/farran/dentaltown/2017October
https://www.nxtbook.com/farran/dentaltownuk/2017october
https://www.nxtbook.com/farran/dentaltown/NewGrad2017
https://www.nxtbook.com/farran/dentaltown/2017September
https://www.nxtbook.com/farran/dentaltownuk/2017September
https://www.nxtbook.com/farran/dentaltownuk/2017August
https://www.nxtbook.com/farran/dentaltown/2017August
https://www.nxtbook.com/farran/dentaltown/2017July
https://www.nxtbook.com/farran/dentaltownuk/2017July
https://www.nxtbook.com/farran/dentaltown/2017June
https://www.nxtbook.com/farran/dentaltownuk/2017may
https://www.nxtbook.com/farran/dentaltown/2017May
https://www.nxtbook.com/farran/dentaltownuk/2017April
https://www.nxtbook.com/farran/dentaltown/2017April
https://www.nxtbook.com/farran/dentaltown/2017March
https://www.nxtbook.com/farran/dentaltownuk/dentaltownuk/2017march
https://www.nxtbook.com/farran/dentaltown/February2017
https://www.nxtbook.com/farran/dentaltown/2017January
https://www.nxtbook.com/farran/dentaltown/2016December
https://www.nxtbook.com/farran/dentaltown/2016November
https://www.nxtbook.com/farran/dentaltown/2016October
https://www.nxtbook.com/farran/dentaltown/2016nge
https://www.nxtbook.com/farran/dentaltown/2016september
https://www.nxtbook.com/farran/dentaltown/2016august
https://www.nxtbook.com/farran/dentaltown/2016july
https://www.nxtbook.com/farran/dentaltown/2016june
https://www.nxtbook.com/farran/dentaltown/2016may
https://www.nxtbook.com/farran/dentaltown/2016april
https://www.nxtbook.com/farran/dentaltown/2016march
https://www.nxtbook.com/farran/dentaltown/2016february
https://www.nxtbook.com/farran/dentaltown/2016january
https://www.nxtbook.com/farran/dentaltown/2015december
https://www.nxtbook.com/farran/dentaltown/2015november
https://www.nxtbook.com/farran/dentaltown/2015october
https://www.nxtbook.com/farran/dentaltown/2015nge
https://www.nxtbook.com/farran/dentaltown/2015september
https://www.nxtbook.com/farran/dentaltown/2015august
https://www.nxtbook.com/farran/dentaltown/2015july
https://www.nxtbook.com/farran/dentaltown/2015june
https://www.nxtbook.com/farran/dentaltown/2015may
https://www.nxtbook.com/farran/dentaltown/2015april
https://www.nxtbook.com/farran/dentaltown/2015march
https://www.nxtbook.com/farran/dentaltown/2015february
https://www.nxtbook.com/farran/dentaltown/2015january
https://www.nxtbook.com/farran/dentaltown/2014december
https://www.nxtbook.com/farran/dentaltown/2014decemberb
https://www.nxtbook.com/farran/dentaltown/2014november
https://www.nxtbook.com/farran/dentaltown/2014october
https://www.nxtbook.com/farran/dentaltown/2014newgrad
https://www.nxtbook.com/farran/dentaltown/2014september
https://www.nxtbook.com/farran/dentaltown/2014august
https://www.nxtbook.com/farran/dentaltown/2014july
https://www.nxtbook.com/farran/dentaltown/2014june
https://www.nxtbook.com/farran/dentaltown/2014may
https://www.nxtbook.com/farran/dentaltown/2014april
https://www.nxtbook.com/farran/dentaltown/2014march
https://www.nxtbook.com/farran/dentaltown/2014february
https://www.nxtbook.com/farran/dentaltown/2014january
https://www.nxtbook.com/farran/dentaltown/2013december
https://www.nxtbook.com/farran/dentaltown/2013november
https://www.nxtbook.com/farran/dentaltown/2013october
https://www.nxtbook.com/farran/dentaltown/2013newgrad
https://www.nxtbook.com/farran/dentaltown/2013september
https://www.nxtbook.com/farran/dentaltown/2013august
https://www.nxtbook.com/farran/dentaltown/2013july
https://www.nxtbook.com/farran/dentaltown/2013june
https://www.nxtbook.com/farran/dentaltown/2013may
https://www.nxtbook.com/farran/dentaltown/2013april
https://www.nxtbook.com/farran/dentaltown/2013march
https://www.nxtbook.com/farran/dentaltown/2013february
https://www.nxtbook.com/farran/dentaltown/2013january
https://www.nxtbook.com/farran/dentaltown/2012december
https://www.nxtbook.com/farran/dentaltown/2012November
https://www.nxtbookmedia.com