Within the last few years, dental practices and DSOs of all sizes have become quite familiar with price volatility when ordering supplies for their location(s).
Since 2020, dental supply costs have increased significantly, with some practices spending as much as 9% of their revenue on supplies (compared to about 6% pre-pandemic).
Supply chain disruptions, price fluctuations, and market uncertainties continue to drive these prices higher meaning practices must carefully consider their approach to purchasing.
But with so many factors out of their control, what can practice owners do?
In this post, we’ll talk through what these uncertainties mean and explore the best approach to protect your practice's financial health from a supply cost perspective.
Traditional ordering processes have given way to a more complex environment.
Inventory challenges both from the pricing and stock perspective stem from supply chain challenges that create both volatile pricing variations and inconsistent stock levels that affect practice profitability.
There are multiple factors at play here causing this.
In the case of current events—at least at the time of this writing—tariffs on countries that many suppliers source raw materials from or where factories are located can be one cause of price volatility.
Supply chain bottlenecks can be another. The "bullwhip effect", for instance, can be caused by over-ordering and wildly fluctuating demand. This effect results in persistent supply chain inefficiencies, keeping prices elevated even as demand stabilizes.
Recent data indicates dental practices experience price variations up to 30% on identical products, based on supplier relationships and purchase timing. Tariffs and trade disputes can cause this number to double or triple on some products depending on the trade policies in place.
Dental supplies, like any other manufactured goods, are part of an interconnected, global supply chain.
Changes in one area—whether from trade policies, manufacturing adjustments, or global events—create a ripple effect throughout the supply chain.
This is the cause of:
Much like during the pandemic, ongoing trade negotiations are very likely to affect dental practices nationwide almost immediately.
Suppliers adjust pricing strategies continuously, sometimes before actual cost increases occur.
This means practices often pay premium prices ahead of genuine market changes. These rapid fluctuations make budgeting and financial forecasting particularly challenging, with price variations of 15-25% on identical products within the same week.
Price increases are only the start of the issue.
To make sure they’re keeping the right amount of stock while keeping supply costs consistent, practice teams have to spend more time on building a supply order. That means additional time to searching for alternatives, comparing prices, and managing inventory.
This operational impact compounds the direct financial costs of higher-priced supplies, creating a cascade of challenges that practice owners must actively manage.
Many manufacturers and suppliers have already potentially invested in higher-priced inventory.
They'll need to sell through these existing stocks before prices can adjust downward.
What this means is that current supply chain challenges will influence prices well into the future, creating a lasting effect that extends beyond immediate market conditions.
Think of it like an echo. Even after the initial disruption subsides, its effects will continue to reverberate for the whole sector.
Suppliers who have modified their procurement patterns or shifted to new manufacturing sources may maintain these changes long-term, resulting in a new pricing baseline for many dental supplies.
This mirrors what we observed during the pandemic, where price normalization took 12-18 months after initial disruptions ended. Your practice needs to prepare for this extended timeline.
These structural changes in the supply chain mean practices must adapt their long-term budget planning and procurement strategies accordingly.
As of right now, every practice is in an uncertain dental supply market. The fact of the matter is: even after this storm passes, there will be another.
The best, strongest protection against unpredictable costs isn't panic buying in bulk or supplier loyalty programs.
Accurate, real-time data at the moment you place an order is the only way you can be sure you’re making informed decisions based on what is happening today as your team places an order.
Without accurate, real-time pricing data, your practice faces multiple challenges:
To protect your practice in today—and any day’s—volatile market:
This emphasizes the need of an effective procurement platform that allows you to tackle all of the above.
With a platform equipped with both inventory management and real-time supplier data, your team can spot pricing anomalies instantly. So if one supplier raises prices unexpectedly, you can immediately compare alternatives across a wider network without having to log into each individual website to check.
This real-time comparison prevents overpaying and helps identify the optimal time to place orders.
Dentists’ economic confidence has declined. According to one survey, only 35% of dentists expressed optimism about the U.S. economy in early 2025, reflecting broader economic volatility that impacts procurement decisions.
While a lack of confidence might be warranted given market conditions, practices aren’t at a loss of actions they can take.
Method has been advising all our clients to implement smart procurement practices and consistent cost monitoring to help create some level of stability week to week regardless of variable conditions.
Our platform is able to deliver instant insights into pricing trends, helping you make strategic purchasing decisions at the moment of order. You can track this information across multiple suppliers, validate price increases, and identify opportunities for savings all in real time.
