Balancing Client Expectations and Price Sensitivity in Veterinary Care
By: Max Truesdel
Pet owners today expect high-quality veterinary care, but rising costs and economic uncertainty make it challenging to balance affordability with profitability. For veterinary practices, finding the right pricing strategy is essential to maintain financial stability while ensuring pets receive the care they need. In this guide, we’ll explore how to implement price increases effectively, manage inflation’s impact, and maintain client trust during transitions.
When and How to Implement Price Increases in Veterinary Practices
Frequency of Price Adjustments
Price increases should be a strategic part of financial planning, not an afterthought. Many successful veterinary practices adjust prices at least once per year, with some evaluating pricing twice a year to respond to economic conditions. The key is to make incremental adjustments rather than large, sudden jumps that could alienate clients.
Timing Considerations for Veterinary Pricing
- Annual Review: Evaluate pricing at the start of each fiscal year, considering inflation rates and operational costs.
- Mid-Year Adjustments: If inflation spikes or vendor costs rise unexpectedly, a mid-year review can help protect profit margins.
- Service-Specific Increases: Prioritize adjustments in areas where costs have escalated, such as pharmaceuticals, diagnostics, and specialty procedures.
- Client Sensitivity: Avoid implementing price increases during financially stressful times (e.g., post-holiday months). Instead, time adjustments during periods of stable client spending behavior.
How Inflation Affects Veterinary Practice Pricing and Profitability
Inflation impacts nearly every aspect of veterinary practice operations, including:
- Supply Costs: Steady price increases for pharmaceuticals, medical equipment, and consumables.
- Staff Wages: Competitive salaries are necessary to retain skilled veterinarians and technicians.
- Facility Expenses: Rising costs for rent, utilities, and insurance premiums.
Without regular price adjustments, these rising costs can erode profit margins, making it difficult to invest in advanced medical technology, staff training, and client experience improvements.
Maintaining Client Trust During Veterinary Price Increases
Transparency is key when implementing price increases. Here’s how to help clients understand and accept necessary adjustments:
- Clear Communication: Inform clients in advance about price changes, explaining the reasons behind them. Use email, social media, and in-practice signage to ensure awareness.
- Value Emphasis: Highlight the quality of care, expertise, and advanced technology your practice offers. Clients are more likely to accept price increases when they understand the value they’re receiving.
- Proactive Staff Training: Equip your team with scripts and responses to address client concerns about pricing. Focus on the benefits of your services rather than justifying cost hikes.
- Gradual Adjustments: Introduce smaller, more frequent price increases to minimize sticker shock.
- Transparent Billing Practices: Provide detailed invoices that break down the cost of services, helping clients understand exactly what they’re paying for.
- Flexible Payment Solutions: Offer financing options, wellness plans, and preventive care packages to help clients manage costs more effectively.
Conclusion: Balancing Profitability and Client Satisfaction in Veterinary Care
Managing client expectations while maintaining profitability requires a strategic approach to pricing, cost management, and communication. By implementing regular price evaluations, carefully timing increases, and focusing on transparency, veterinary practices can continue providing exceptional care without compromising financial stability.
Omni Practice Group specializes in helping veterinary practices assess pricing strategies and financial health. Let us help you create a balanced and sustainable approach for your practice.
Read MoreFrom Outdated to Outstanding: The Risks and Rewards of Buying a Fixer-Upper Veterinary Practice
By: Max Truesdel
The idea of buying a fixer-upper veterinary practice might remind you of those popular home renovation shows—where vision, investment, and hard work transform a dated property into a dream space. Similarly, purchasing a veterinary practice in need of upgrades can be a rewarding venture, but it comes with its own set of opportunities and challenges. If you’re considering this path, here’s how to approach it wisely.
Why a Fixer-Upper Might Be Right for You
For many aspiring practice owners, a fixer-upper veterinary clinic offers a unique opportunity to enter the market at a lower cost while building a practice tailored to their vision. These practices often come with a lower upfront price tag compared to turnkey operations, making ownership more accessible.
One reason for this lower cost is the reduced competition. Many buyers are looking for fully operational, modern clinics, which means fixer-uppers often attract fewer offers. With fewer buyers vying for these opportunities, you may have more room to negotiate favorable terms and secure a deal that works for you.
One of the most appealing aspects of a fixer-upper is the chance to customize the practice to your exact needs. Whether it’s modernizing outdated equipment, refreshing the clinic’s branding, or redesigning the facility layout, you have the freedom to shape the practice into a space that truly reflects your vision and values. Additionally, these practices often have untapped potential. By introducing modern tools, efficient workflows, and effective marketing strategies, you can significantly boost profitability and client satisfaction.
Perhaps the biggest advantage is the existing client base. Unlike starting from scratch, a fixer-upper comes with a built-in roster of clients. With the right improvements and a focus on exceptional service, you can enhance their experience, build loyalty, and attract new clients—all while avoiding the challenges of building a practice from the ground up.
What to Watch Out For
While the opportunities are compelling, buying a fixer-upper practice isn’t without its risks. One of the most common pitfalls is underestimating the costs involved. Renovating a practice can quickly become expensive, with equipment upgrades, facility repairs, and software investments adding up. Before committing, it’s essential to conduct a thorough financial analysis and consult with experts to understand the full scope of costs.
Another potential challenge is structural or zoning issues. If the building requires major repairs or isn’t zoned for veterinary use, you could face unexpected expenses and delays. Always have the facility inspected and verify zoning regulations before finalizing the purchase.
Reputation can also be a hurdle. If the practice has a history of poor service or outdated practices, rebuilding trust with clients will take time. Research online reviews, talk to current clients, and develop a plan to address any negative perceptions.
Staffing concerns are another factor to consider. A struggling practice may have overworked employees, outdated training, or high turnover. Assess the current team’s strengths and weaknesses, and plan for training or hiring to align with your vision.
Finally, rapid or drastic changes can unsettle long-time clients. A thoughtful transition plan—with clear communication and gradual improvements—can help retain their trust and loyalty during the transformation.
Navigating the Process Successfully
To turn a fixer-upper practice into a thriving business, careful planning and execution are key. Start by performing thorough due diligence. Review financial records, client retention rates, and facility conditions. Partnering with an experienced veterinary practice broker can provide valuable insights into the practice’s strengths and weaknesses.
Once you’ve assessed the practice, create a detailed renovation and investment plan. Identify immediate needs versus long-term goals, and prioritize upgrades that improve patient care and client experience. For example, modernizing medical equipment or refreshing the waiting area can have an immediate impact.
Securing financing is another critical step. Account for the purchase price, renovation costs, and working capital to cover expenses during the transition. Work with a lender familiar with veterinary practice financing to ensure you have the resources needed to succeed.
Engaging the current team and clients is equally important. Involve staff in the transition process, listen to their feedback, and address their concerns. Clear communication and a shared vision can help build trust and buy-in. Similarly, keep clients informed about the changes and reassure them that their care remains a top priority.
Finally, focus on marketing and branding to showcase your revitalized practice. Update your website, social media, and local listings to highlight improvements and attract new clients. A strong digital presence can help position your practice as a modern, client-focused destination.
Final Thoughts
Buying a fixer-upper veterinary practice can be a rewarding investment if approached strategically. With careful planning, the right financial approach, and a commitment to revitalization, you can transform an underperforming clinic into a thriving, modern practice. Much like the home renovation shows we love, success comes from vision, persistence, and a well-executed plan.
If you’re considering this path, Omni Practice Group can help you navigate the process, from valuation to transition strategy, ensuring your dream practice becomes a reality.
Read MoreGiving Back: Supporting Communities Near and Far
At Omni Practice Group, making a positive impact is at the heart of our mission. By partnering with incredible organizations across various causes, we strive to uplift communities, protect animals, and inspire positive change. Through financial contributions and hands-on involvement, we’re committed to fostering a brighter future.
Here’s how we give back:
Each Thanksgiving, we join the Eastside Basket Brigade in providing holiday meals to families in need. Since 2012, this initiative has grown from feeding 50 families to serving over 200 families annually, reaching up to 1,000 individuals. With 100% of donations going directly to families, the program ensures that every meal is a gesture of care and community spirit.
We proudly support Everyone for Veterans (E4V), a nonprofit empowering U.S. veterans through critical resources and free dental care. Founded by Dr. Theresa Cheng, E4V connects veterans and their spouses to a network of pro-bono dental professionals. Through this partnership, we contribute to improving the lives of those who have selflessly served our nation.
Atlas Free works to end sexual exploitation by supporting anti-trafficking initiatives worldwide. With over a decade of experience, they collaborate with local organizations to provide resources for aftercare, prevention, and intervention programs. Their efforts have positively impacted more than one million individuals.
Climb for Captives partners with Atlas Free to raise funds for the fight against human trafficking. This platform empowers individuals to turn outdoor adventures into fundraisers. Participants have raised over $1.5 million to support survivors.
Animal welfare remains close to our hearts. Our contributions to the American Society for the Prevention of Cruelty to Animals (ASPCA) and the Humane Society for Tacoma & Pierce County provide life-saving care for animals. These organizations rescue, rehabilitate, and rehome thousands of animals every year, fostering compassion within our communities.
In our own backyard, we support the Resilient Project, a nonprofit mentoring at-risk youth in Washington State. By empowering children to rise above adversity, this program helps them discover their potential and develop the confidence needed to succeed.
We’re passionate about protecting nature for future generations. Through the World Wildlife Fund, we sponsor an adopted elephant and support global efforts to conserve wildlife habitats, address climate change, and rebuild ecosystems.
Oral Cancer Foundation
The Oral Cancer Foundation is dedicated to reducing the incidence of oral and oropharyngeal cancers. By funding research, raising awareness, and supporting patients, they help improve health outcomes. Omni’s contributions align with their mission to promote early detection and treatment.
Homelessness is a growing crisis, and we’re proud to partner with Seattle’s Union Gospel Mission. Their programs address root causes and provide lasting solutions to homelessness by offering urgent care, long-term recovery services, and a message of hope and love.
Additional Causes We Support
Omni also extends support to local and state veterinary, dental, and chiropractic societies across our nation that enrich communities and address local needs. We are committed to fostering positive impacts and supporting initiatives that strengthen our professional communities.
Join Us in Making a Difference
At Omni, giving back is more than a responsibility- it’s a privilege. By standing with these remarkable organizations, we’re honored to play a small part in their transformative work.
Together, we can build stronger, more compassionate communities.
Read MoreThe Veterinary Future: Why Young Veterinarians Should Consider Practice Ownership
By: Jen Bennett
As the veterinary landscape continues to evolve, a growing number of young veterinarians find themselves at a crossroads: to remain employees in established practices or take the bold step towards ownership. While the security of a salaried position can be appealing, there are compelling reasons for young veterinarians to consider purchasing a practice. This article explores the benefits of ownership and why taking the initiative to invest in one’s future can lead to both personal and professional fulfillment.
The Shift Toward Ownership
The veterinary profession is witnessing a significant shift, with many seasoned practitioners nearing retirement and looking to sell their practices. This transition presents a unique opportunity for young veterinarians to step in and take the reins of an existing practice or establish a new one. By seizing this chance, young professionals can shape their careers and influence the future of veterinarians in their community.
Financial Independence and Potential for Wealth
One of the most enticing aspects of practice ownership is the potential for financial independence. As an employee, a veterinarian’s income is often capped by the salary set by the practice owner. In contrast, owning a practice allows for direct control over earnings. With the right strategies, a practice can become a significant source of wealth, providing not only a sustainable income but also the potential for long-term financial growth. Practice owners have the opportunity to build equity, which can be leveraged for future investments or retirement.
Autonomy and Professional Satisfaction
Ownership brings a level of autonomy that is hard to achieve as an employee. As a practice owner, veterinarians have the freedom to make decisions about the practice’s direction, from the services offered to the marketing strategies employed. This autonomy fosters a greater sense of professional satisfaction and pride. Young veterinarians can create a work environment that aligns with their values and vision, leading to increased job satisfaction and a more fulfilling career.
Building Patient Relationships
In a practice ownership scenario, veterinarians can cultivate long-term relationships with their patients. This continuity of care allows for a deeper understanding of patient needs and preferences, ultimately leading to improved patient outcomes and loyalty. As an employee, transitioning from one practice to another can disrupt these relationships, while ownership allows for the establishment of a dedicated patient base that can be nurtured over time.
Enhanced Career Development
Owning a practice provides young veterinarians with invaluable experience in various aspects of business management, including financial planning, marketing, human resources, and patient care. This multifaceted experience not only enhances their clinical skills but also equips them with essential business acumen. As the healthcare landscape becomes increasingly complex, these skills will be invaluable for navigating the challenges and opportunities that lie ahead.
Flexibility and Work-Life Balance
While practice ownership can be demanding, it also offers the potential for greater flexibility. Owners can create their schedules and determine the number of hours they wish to work, allowing for a better work-life balance. This flexibility is particularly appealing to young veterinarians who may want to prioritize family, personal interests, or community involvement alongside their careers.
Overcoming Challenges
It’s important to acknowledge that ownership comes with its own set of challenges, including financial risk, the responsibility of managing staff, and the need for effective business strategies. However, with the right support systems in place, such as mentorship, networking, and continuing education, young veterinarians can navigate these challenges successfully. Investing in a practice management program or seeking guidance from experienced colleagues can provide the necessary tools for success.
Conclusion
As the veterinary profession evolves, young professionals have a unique opportunity to shape their futures through practice ownership. The benefits of financial independence, autonomy, patient relationship building, and professional development far outweigh the challenges. By taking the initiative to purchase their practice, young veterinarians can create a fulfilling career that reflects their values, goals, and aspirations. In doing so, they will not only secure their financial future but also contribute positively to the ever-changing veterinary landscape. Embracing ownership is not just a career choice; it’s a bold step toward creating a legacy in the veterinary field.
Read MoreA Tale of Two Vets
The following is a story about two veterinarians who had dreams of owning their own practice. While the story may seem a bit farfetched, it is based on true events. In fact, we have seen this story multiple times in today’s environment. Maybe this happened to you?
Shawn and Lilly graduated from the same veterinary school in 2010. They were good friends and always enjoyed talking about their plans after graduating from Veterinary school. Shawn had dreams of owning a practice in his hometown of Yakima, WA. Lilly had a goal of opening a large practice in Portland, Oregon.
Upon graduation, both had lined up associate veterinary jobs in their hometowns. Shawn worked for a veterinary clinic owned by a solo/single veterinarian. Lilly got an associate job working for Happy Pet, a corporate-owned practice with 25 locations on the West Coast. Shawn enjoyed his job working in his hometown. The doctor that owned his practice was a nice man, gave back to his community, and was fairly generous with Shawn as well. Lilly was not as happy as Shawn. Her corporate job required her to work weekends. She also worked on a lot of reptiles as the manager and one of the techs, whom they knew didn’t like her, also knew she didn’t enjoy working on reptiles. Yet, Lilly continued to go to work every day in the practice with a grin on her face. A fake grin, but a grin, nonetheless.
After three years, Lilly was asked to take the emergency calls for the rest of the summer. This was after Lilly had planned and paid for a two-week vacation in the Bahamas. Lilly went home and decided, enough is enough. “I’m going to buy my own practice, work when I want to work, and on what animals I want to work on.”
Lilly immediately went online and searched for practices for sale in Portland. Happy Pet wasn’t smart enough to have her sign a non-compete agreement, so she could buy a practice anywhere. Lilly saw three potential practices listed with Omni Practice Group. She called her local broker. They were very helpful and explained the pros and cons of each practice. They showed her each of the practices. Lilly loved one that was across town from Happy Pet. The broker represented the seller but still helped Lilly with due diligence, obtain financing, and referred her to a good veterinary attorney.
Within a few days of closing on the sale of her practice, Lilly’s love for veterinarian work returned. She loved seeing the pets that came in. She adored her staff. There was an assistant that mutually parted ways, but Lilly hired a new assistant who was friendly and amazing. Lilly also adjusted the hours to work a schedule that allowed her to also have a personal life. After a couple of years, the practice was doing so well, that she hired an associate in her practice and expanded hours. The associate actually enjoyed working weekends! Lilly ended up paying off her practice loan of $500,000 in under 5 years.
Meanwhile back in Yakima, Shawn is content working his job for the owner-veterinarian. Sure, the owner has told him he would sell him the practice “when that time came”. But the owner is only 52, so it may be another 10 or 15 years. Shawn had an opportunity to purchase another practice that came up for sale 7 miles away from the practice. But the owner was smarter than Happy Pet. The owner had Shawn sign a 20 mile and 5-year non-compete agreement. Ouch! Shawn’s salary when he started in Yakima was $60,000 per year. Over the past 5 years, he had worked up to $70,000 per year with medical benefits! Shawn, of course, had no equity in the practice.
At the 10-year class reunion, Shawn and Lilly ran into each other. Lilly asked Shawn how things were going? Had he achieved his goal of practice ownership in Yakima? Shawn told her, “No, but I’m hoping to buy the practice I’m currently in someday.” He told her that the seller had promised him he would sell it to him when he retires.
Shawn asked Lilly if she had purchased a practice in Portland? Lilly lit up. “Yes! I purchased a practice 7 years ago. I paid it off in 5 years. I have an associate working for me that enjoys doing those things that I don’t like. I have an amazing staff that we get along so well that we occasionally hang out together outside of work. I was recently offered $2.5 million for my practice from a corporate buyer. I’m not sure I’m going to accept the offer though. I’m taking home $175,000 per year, I’m loving what I do, love my staff and associate, it’s what I dreamed of when I wanted to own my own clinic…” Lilly quickly shut up as she realized she was sounding like a braggart and felt somewhat sorry for Shawn. She told Shawn that she would be happy to introduce him to her broker, who would help him find a practice of his own. Shawn said he would think about it.
Fast forward three more years. Lilly receives a “Just Sold” postcard stating that the practice in Yakima that Shawn worked at and had been told he could buy when the seller was instead sold to a corporate group practice. To make matters worse, the corporate buyer was Happy Pet – the same group that Lilly had worked for and didn’t enjoy their management style. Poor Shawn, Lilly thought. If only he would have taken me up on my offer to meet my broker at Omni. He would have gotten him into a practice right away and Shawn would be enjoying practice ownership.
Don’t let this story happen to you. Fulfill your dream of practice ownership. Give Omni a call today for a free practice purchase consultation.
