Financial Trends from the Trenches
Description
Thanks for tuning in to VetBusiness, presented by the Veterinary Hospital Managers Association and sister show to its VHMA podcast, where expertise and innovation shape the future of veterinary management!
Your host Brian Conrad, in our first episode, discusses how the veterinary industry has truly been through a whirlwind in recent years, including rising costs, economic uncertainty, and staffing challenges, all of which have put practice owners in a tough spot. How do you keep your doors open, pay your team fairly, and still make pet care affordable for clients? Joining him to help him explore this is Terry O’Neil, a CPA and valuation expert who has spent years analyzing veterinary practices.
Terry shares his perspective on what’s really happening in the industry right now. Are practices panicking? No, but they are definitely being cautious, with prices having climbed significantly in the past few years. While those increases were necessary, they also raise a critical question: how much is too much? Terry proposes a smarter way to approach pricing, one that avoids knee-jerk reactions and instead leans on data, efficiency, and even A.I.
We also talk about one of the biggest challenges facing practices today: staffing. If you have ever struggled to keep your team engaged (or just keep them, period), Terry has some great advice on why old-school management approaches aren't working anymore.
We hope that you will enjoy this episode, as it is packed with amazing insights into pricing strategy, efficiency, and leadership in veterinary medicine, and welcome to VetBusiness!
Show Notes:
[2:47 ] - Terry points out how many vet practice owners are concerned about the economy and clients' ability to afford services.
[4:22 ] - Rising staff wages have led to increased service costs.
[7:50 ] - Terry argues that vet hospitals should review declined recommendations to get a better sense of pricing flexibility.
[10:27 ] - Vet practice values are ultimately affected by market shifts, with acquisitions starting to pick up again.
[12:00 ] - Terry explains how pay rates vary by location, causing businesses to have to balance competitive wages with their prices.
[15:31 ] - Clinics must find ways to attract clients despite rising costs by strategically adjusting fees.
[16:06 ] - Vet practices need to analyze client retention, offer first-visit incentives, and also put monthly payment plans into place.
[18:56 ] - Terry argues that monthly payment plans help clients budget for pet care and should include a premium fee.
[20:53 ] - Vet staff should also be allowed to work schedules that support their mental health and job satisfaction.
[23:05 ] - Leadership requires flexibility, the ability to adjust strategies, and keeping an eye on key performance metrics to drive business success.
[24:12 ] - Terry states that veterinary hospitals need to focus on client visits, pricing strategies, labor efficiency, etc.
Thank you for listening. Remember you are not in this alone. Visit our website for more resources.
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