45% of practices increase their fees annually
If you cringe at the thought of raising your prices and the potential of losing clients as a result, keep in mind that 45% of practices do, according to Financial and Productivity Pulsepoints: Vital Statistics for Your Veterinary Practice. It’s part of staying profitable as the cost of goods, services, and labor increase.
Additionally, keep in mind that clients don’t leave a practice because of higher fees. They leave because they move, they want a more convenient location, or they don’t perceive enough value for the price.
To assess whether it makes sense for your practice to raise its fees, review your fee schedule bi-annually to assess whether a price increase is justified. (And be sure to update product costs in your practice management software regularly.)
You can also assess other areas of your practice for profitability should you decide that raising fees is not an option. Financial and Productivity Pulsepoints: Vital Statistics for Your Veterinary Practice will enable you to do that.
It provides information on what other practices in your geographic and demographic area are doing, such as the average transaction charge, number of clients and patients they see, laboratory income-to-expense ratio, and more over a calendar year. Financial and Productivity Pulsepoints: Vital Statistics for Your Veterinary Practice is loaded with charts and graphs, each of which includes a definition, analysis, and next steps your practice can take to boost its profitability.
Photo credit: © iStock/zoom-zoom