Practice Tip 06 - Fees

FEES… WHAT TO OR NOT TO CHARGE FOR

I had the luxury of buying a practice in the highest per capita income community of the nation and initially thought (and so did my colleagues) that fees will be no problem. I was very quickly awoken by the fact that this community, despite it’s material wealth, in many cases watched where it spent each & every dollar. I had to develop a fee guide that would not scare price-shopping clients away but would keep me profitable at the same time. Some of my best clients, that paid 10’s of thousands of dollars over the years, came in on a price shopping call. But remember this too: It’s hard to make up in volume when you charge below cost!

Here’s what works:
Make a list of your most commonly price-shopped items - vaccines, spays, neuters, Advantage etc… These are called your Front-end Items. (Do not include X-rays, lab work, major surgery etc… as clients rarely shop for these). Keep these prices low or a maximum of 10% above the pack (neighboring colleagues) so you don’t block the entrance to your practice. Also, don’t go too low as clients then question your safety and value.

Make a list or your remaining Back-end procedures and break each of these higher ticket items into smaller priced items. Make sure there is a fee for everything you do. If it’s not defined, you won’t charge for it. Charge for these back-end fees at a higher price point (profit).

When making estimates and bills up, bundle the back-end items together to make a larger profitable bill. Most veterinary management software systems allow for creating these bundled items.

When going over the estimate with the client make sure you explain every line, one at a time, checking for understanding with the client. If the client looks confused - then back up. Don’t go too fast. Get the clients agreement on every point.

Work out the payment after you have their agreement.

Questions? Give me a call.
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