5 Aug 2016
Building a profitable practice delivering quality care can sometimes seem like an impossible task. But clients still want the best when it comes to their pets, and most are prepared to pay a premium, says Kay Irvine.
Figure 3. Investing in the latest technologies means practices can offer owners optimum health care in a comprehensive and coordinated long-term programme.
In an increasingly consumer-driven marketplace it is no longer sufficient to just be a good clinical practice. Although there appear to be less clients and patients out there, they are out there. Practices must learn how to market themselves to capture not the largest proportion, but the best quality of the available pet market in their area, if they are to survive.
Likewise, the merchandise a practice chooses to sell reflects the quality of the medicine it provides. It is, therefore, vital to choose quality products your clinical team believe in – and are happy recommending.
If quality medical care – both in terms of a full service hospital and a staff of dedicated veterinarians with diverse backgrounds and many years of experience – matters most, then the phrase “quality counts” surely embodies most independent veterinary professionals’ approach to medicine.
But does it come across clearly in the way you communicate with your potential and existing clients?
As well as providing good customer service, nice premises and a strong brand, the products prescribed, sold and displayed in our veterinary practices go a long way to defining how customers perceive the practice they use. This is key to a practice’s success.
All too frequently, it seems the selection of veterinary care is based on cost rather than value – although, when asked, the majority of pet owners say they make their practice choice based on getting the best possible care for their pet and they are prepared to pay for that. But is this actually true, and how would we know?
Aggressive, low-cost marketing strategies focused on client growth – particularly by relative newcomers to the market, with extensive and national marketing budgets – are changing the traditional competitive landscape. In a static market, these “new” clients can only come from other practices’ established databases.
Typically, they use the classic “Four Ps” approach to marketing (Figure 1) and this can be an unbeatable strategy when resources are unlimited. However, as we experience extra pressures on staff, time and energy, does quality really count more than price?
Quality strategies are being rapidly eroded, however, by declining client and patient numbers – due to more clinics being established, staff shortages, even greater consumer demand for value and convenience, as well as increased competition between practices creating a downward pressure on quality veterinary care and prices.
Regardless of the reasons for falling clientele, preventive health care represents a standard of clinical excellence, one which our counterparts in human medicine and dentistry have practised successfully for some years and a standard that could go some way in alleviating the frequent “dinner party grumbling” about vet bills.
At Vet Dynamics what we are seeing is practices that are being run successfully, and will continue to be successful in the future, are moving away from these budget mind sets and investing in the “Four Qs” (Figure 2).
Namely, don’t sell vaccinations, don’t sell wormers and don’t sell flea control.
Instead, sell whole-of-life preventive health care packages to attract and bond a large, healthy patient base to the practice by using client-focused relationship marketing, concentrating on quality, value for money and convenience for the client.
Most of the time the vast majority of your clients own healthy animals and will have no perceived need for clinical veterinary services. Even if vaccinated as puppies or kittens, often owners will not come in for their pets’ annual vaccination and use home medication or alternative therapies instead.
Other needs can be acquired from sources such as pet shops, superstores and the internet at a better perceived value. Unless we can create the need for these clients to engage with the concept of preventive health care for their well pets they will remain unaware of the benefits of routine health care or continue to seek non-veterinary alternatives.
The importance of stocking only high-quality, proven medicines should not be underestimated. Whether this is ectoparasitics or vaccines, where exactly does your practice stand as far as your clients are concerned? The same goes for nutraceuticals and other supplementary products.
Diets, too, should come under consideration. When your team recommends high-quality food and lifestyle diets, their job is to explain why quality counts in a pet’s diet – resulting in the enormous benefits of the owner making an informed choice, rather than being influenced purely by price and heavy marketing/branding.
Is a higher priced product good for business? Yes, because it is the higher quality product and generally better for the pet. The higher the price the practice pays for that product – assuming a 20% to 30% mark-up – the more the product is sold for and the more profit a practice will make, if run properly.
Obviously, higher quality products may cost your business more, but, if you believe they work better, represent good value for money for the customer and the pet is getting a proven product that works, what’s stopping you shouting it from the rooftops? Surely better products, better outcomes, well pets and happy clients was your original purpose of starting a veterinary practice?
You may now be shouting “of course it is” at this page, but if you don’t have a written vision, plan or purpose, then you risk standing for nothing and you won’t get your “quality counts” message across as effectively as practices that do.
The important bit of any preventive health care offering is that it has to be the very best on the market at any given time. Your team’s buy-in, with an attitude of researching, embracing and pioneering the latest products, will reassure customers they are making the right decisions for their pet.
The quality of your team depends on the practice’s willingness to invest in staff training in interpersonal skills, client care for receptionists, nurses and vets, and making care and compassion a differentiating part of your competitive advantage.
Cost-effective, high-quality and accessible preventive health care plans throughout the pets’ life will deliver clear benefits for:
Whether investing in the latest technologies, such as K-Laser, digital imaging or specialising in new therapies, once you have a client on board it is the whole practice team that determines whether you will retain or lose that client in the future.
Good veterinary medicine will earn good money and good marketing will bring in more and better clients. However, it is excellent customer care that will convert them to engaged clients and it is high-quality medicine and products that will keep them coming back.
Finally, a good business plan and effective management will make your practice profitable.
In conclusion, as an independent practice owner, quality is the best weapon you have in your armoury – so use it wisely.