1. Gross hearing aid revenue as a percentage of gross revenue.
Hearing aid sales generate more revenue per clinical hour than follow-up services or other product sales. Between 70% and 90% of your business’s gross revenue should be generated by hearing aid sales.
2. Gross margin percentage of net hearing aid revenue.
The percentage of profit your business makes on the sale of a hearing aid should be around 65%. That margin allows your business to operate at a profit even after expenses like payroll, rent, and supplies.
3. Net profit percentage of net hearing aid revenue
Your net profit is the defining metric for any business. This is essentially the measure of whether your business is making money. Generally speaking, audiology businesses should aim for a 20% net profit, substantially higher than the industry average of 12%.
4. Average patient net revenue
Knowing the fiscal value of each patient allows your business to set key performance indicators and determine marketing budgets. The ideal value per patient is around $4,200, although the industry average is closer to $3,000 per patient.
5. Conversion rate percentage
In audiology, your conversion rate is generally measured by the number of curious or casual clients who actually purchase a hearing aid. Depending on how you choose to define a conversion – percentage of visitors who make a purchase following a hearing aid evaluation appointment, for instance – you should target converting around two-thirds of potential clients.