{"id":951,"date":"2011-05-27T14:20:32","date_gmt":"2011-05-27T18:20:32","guid":{"rendered":"http:\/\/vetnetwork.com\/blog\/?p=951"},"modified":"2011-06-27T15:58:59","modified_gmt":"2011-06-27T19:58:59","slug":"pricing-your-services-for-profit-and-value","status":"publish","type":"post","link":"https:\/\/vetnetwork.com\/blog\/2011\/05\/pricing-your-services-for-profit-and-value\/","title":{"rendered":"Pricing Veterinary Services for Profit and Value"},"content":{"rendered":"

You can be at the top of your profession as a veterinarian, but still have a struggling practice<\/a> if you don\u00e2\u20ac\u2122t make business and marketing<\/a> operations top priorities.<\/p>\n

Studies show that far too few veterinarians understand that effective use of financial concepts is as critical to their success as providing quality care. And yet, the same studies reveal, those who do become experts in utilizing the powerful tools available to increase profitability enjoy superior success among their peers.<\/p>\n

A 2011 report by Bayer Health Care\u00e2\u20ac\u2122s Animal Health Division and the National Commission on Veterinary Economic Issues examines decreasing client visits and the resulting loss of revenue at veterinary hospitals nationwide.<\/p>\n

The Bayer Veterinary Care Usage Study reveals that 62 percent of practices do not use financial concepts to manage their business and that the practices that do employ a range of financial concepts, such as pricing strategies, are two-thirds more profitable.<\/p>\n

This demonstrates that what is true for all professionals is also true for veterinarians: There\u00e2\u20ac\u2122s no such thing as a good business without a business plan including good financial concepts.<\/p>\n

Pricing as a Priority<\/h3>\n

Researchers with The Bayer Veterinary Care Usage Study found that when compared to other professions such as CPAs, chiropractors, dentists, and physical therapists, veterinarians came in dead last in terms of profit margin at an average of 10.5 percent.<\/p>\n

The study identifies six key factors limiting client visits, four of which can be impacted by veterinarians. Of the four, pricing stands out the most. In fact, clients said that the frequency and amount of price increases for animal care affected their spending decisions, and that veterinary costs usually were much higher than they expected.<\/p>\n

In slang terms, clients described the experience of \u00e2\u20ac\u02dcsticker shock.\u00e2\u20ac\u2122 By contrast, they said they would visit the veterinarian\u00e2\u20ac\u2122s office more regularly, particularly for preventive care, if they were aware of ways to save money while retaining quality.<\/p>\n

It stands to reason that increased visits translate into greater profit. So the question becomes: what can a veterinarian do to satisfy the client\u00e2\u20ac\u2122s need for value, and in turn, get them to come in more?<\/p>\n

Just like you, your clients have high expectations for flexibility and personalized services, especially when it comes to pricing and payment. They want options that meet their needs and make them feel valued. They also will respond favorably if they believe they are getting a better deal than what is offered at competing practices.<\/p>\n

However, don\u00e2\u20ac\u2122t confuse pricing strategies with undercutting or a competition for offering the lowest prices. Rather, you want clients to know that your practice\u00e2\u20ac\u2122s cost and quality as a package make for a good value when it comes to money spent.<\/p>\n

Pricing Strategies<\/h3>\n

Though some of the following pricing strategies<\/a> are underutilized in the veterinary community, they are embraced and successful for nearly every other type of business.<\/p>\n

Strategies to consider are:<\/strong><\/p>\n