29 Q2 2022 | Animal Health Solutions
U.S. Department of Labor to calculate the healthcare
portion of the CPI.
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For veterinary practices, his expertise
and insights couldn't be more relevant.
What's the most effective way to increase prices today to
help protect the health of both your practice and patients?
Let's start with the obvious.
The rationale for raising prices
Inflation or not, owners will continue caring for their
pets. Indeed, eight in 10 owners consider their pets to be
members of the family.
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And many owners would pay a
veterinarian bill before their car or mortgage payment—
or even to keep the lights on.
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During the height of the
pandemic, you no doubt saw your local animal shelter
literally run out of pets as adoptions surged. Now more
than ever, there are more pets who need care—and pet
owners willing to pay for it.
You may have also experienced first-hand another impact
of the pandemic: a shortage of staff to care for the rising
number of pets. As a result, many veterinary practices have
needed to raise salaries and increase benefits to attract
and retain the best employees. These costs are already a
significant portion of a practice's budget. As they continue
to rise, your practice will need to offset them.
It's not a matter of whether to raise prices to help offset
inflation and rising labor costs, but how.
Even services companies
with an altruistic nature
such as animal hospitals
owe it to themselves and
their patients to stay
financially healthy during
inflationary periods. That
means making a profit and
protecting profit margins.
Brian Beaulieu, CEO
ITR Economics
