Raising fees only takes you so far

For too long, practitioners undervalued their services, charged too little and often gave away care for free. Though this may still be true for some, others digested the message about a healthy business supporting good medicine and raised their fees. But to make this equation work, you need to raise the level of service, too.

Between 1997 and 2003, veterinarians' average incomes increased 41 percent, according to the 2004 AVMA-Pfizer Business Practices study. And the vast majority of this income came from fee increases. That's good. Veterinarians needed to raise fees. But there's a limit. After a certain point, you must also raise the level of service you're providing. If your service and prices don't equate, clients will look elsewhere.

Americans will pay for what they value, and they definitely value their pets. I don't doubt that even with rising prices people will continue to opt for pet ownership. But will pet owners continue to accept average transaction fees in excess of $100—or even $200—every time they bring in their pet for care?

Improve service to improve value

People are more knowledgeable than ever about medicine, yet few clients can truly judge the quality of medicine you provide. What they're judging is the service you provide—your explanations about what you're doing for the pet, why this treatment is best, and the consequences if you perform less than this treatment or procedure.

Let's just say for a minute that you're the best in the world at client education. Your team could still probably improve. And they should be playing an ever-greater role in basic client education.

Do your team members know how to answer the most-common questions clients ask? Most pet owners first direct their questions to staff members. And far too frequently, nondoctor team members aren't given the knowledge and skills they need to provide clear medical explanations.

So, pet owners evaluate your care based on service and client education. And everyone in the practice creates the impression of value. In fact, pet owners are likely influenced more by staff members than by doctors. Which means you must educate your staff members so they in turn can educate clients.

Here's the rub: Veterinary practices continue to pay support staff wages below those provided by many more glamorous, albeit potentially less rewarding, careers. Then we wonder why turnover is high or why team members seem less invested in their jobs.

Take time to evaluate your approach

Think about the service you and your team members deliver. Can you shorten the time pet owners wait on hold? Can you cut the time they wait to see a doctor? You don't make them wait to pay, do you? Does your practice make it more convenient for pet owners to visit compared to 10 years ago?

Do pet owners understand that dental care is essential to preventing disease? Do you educate your clients about nutrition? Do you offer them a chance to ask questions?

Pet owners will pay for great pet care. But they increasingly balk at paying for poor service, indifferent attitudes, and lack of education and explanation about what their pets need. How can clients accept top-quality care when they don't even understand the benefits? And why would they pay more for it?

Roger Cummings, cvpm

Veterinary Economics Editorial Advisory Board member Roger Cummings, CVPM, is a consultant with Brakke Consulting Inc. in Dallas. Send questions or comments to ve@advanstar.com