Help your veterinary practice walk the financial tightrope
You've got questions, we've got answers. Here's what you need to know to understand the business you work for.
Jan 01, 2013
You're in the business of animal health, and your training until now has probably been focused on providing patient care and offering stellar customer service. Yet understanding the financial side of the small business you work for can help you help your practice—and it's part of your job. Consider these common questions and learn more about the serious financial concerns your practice owner must balance every day to keep your practice afloat.
What's the difference between the practice's gross revenue and net profit?
Why do we charge so much?
To remain competitive, practices traditionally charge less money for things like physical examinations, spays, neuters, and all the procedures that are shopped, says Bash Halow, CVPM, LVT, a Firstline board member and the owner of Halow Consulting.
"To make up for the money they save clients in one area, they charge more money in others," Halow says. "No, it's not fair, but it's a pricing strategy that is designed to be most acceptable and appealing to our clients."
"If you haven't been educated about pricing, you might think, 'Wow, $20 for a nail trim, that's a lot.' But you should also think, 'But it's only $50 for an exam. That's a deal,'" Halow says.