Indie sector is ‘thriving’ despite ‘knee-jerk’ fear

A vet and pet insurance company boss has urged independent practitioners not to jeopardise client trust by making “knee-jerk reactions” on pricing.

The plea came after the inaugural Vetsure Indie Report found the sector was “thriving” with around three-quarters of participants reporting increased trust in their practices following the Competition and Markets Authority’s (CMA) investigation.

But while only 4 per cent identified price as a factor in shaping client loyalty, more than half (52.5 per cent) raised concerns about a potential “race to the bottom” in the area.

Vetsure founder and managing director Ashley Gray said: “The headline story is clear – trust has improved, teams feel valued and the independent model is thriving.

“However, I am concerned some practices are making knee-jerk reactions with their pricing. There is a real risk of throwing the baby out with the bathwater.”

Sector leaders

The report is based on a survey of 139 independent sector leaders, which was carried out by the research organisation Censuswide in August, prior to the CMA’s final remedies being implemented.

Although virtually all participants (97%) reported experiencing regulatory or compliance pressure, a similar proportion (96% said both that they had an opportunity to distinguish themselves from corporate competitors and their practices would grow in the coming year.

An overwhelming majority (92%) also forecast a successful year ahead for the independent sector, with 91 per cent arguing independence helped to create a stronger team environment and 84% seeing it as a benefit to recruitment.

Meanwhile, more than three-quarters (76%) said trust had increased after the CMA inquiry, including almost 26% who reported a significant jump, compared to just 2.9% which reported a fall.

‘Intense scrutiny’

Dr Gray said: “Independent practices are responding to intense scrutiny with confidence rather than retreat. They are strengthening transparency, investing in their teams and technology, and remaining focused on the personal relationships that make local veterinary care distinctive.

“For too long, the independent sector hasn’t really had a voice or been listened to as well as it should be. This report is about giving independent vets a voice – representing their experiences and opinions at the centre of the industry conversation.

Despite the broadly positive findings, the analysis did highlight concerns over the potential impact of AI with a majority (58.3%) of participants fearing its use could erode the “human touch” within independent practice and more than a third (38.9%) suggesting its adaptation could widen the competitive gap between independent and corporate providers.

Corporate acquisitions

The report also found no sign of a slowdown in corporate acquisition interest, with 71% of participants reporting they had been approached within the past year and 41% saying they had received more than one approach.

But Dr Gray cautioned against interpreting the figures as a sign little had changed from the CMA process, arguing its remedies could shift the “terms of competition” going forward.

He also highlighted the confidence expressed by the survey’s participants, adding: “When clients can clearly see who owns their practice, independence becomes something practices can communicate and compete on.”

The full report, which is expected to become an annual publication, is available online.