“Veterinary hospital multi-unit price consistency is vital to the foundation of a successful veterinary practice.” Says Dr. Jeff Brant, Chief of Business Development at Hippo Manager.
And therefore the role of your practice management software is integral to having price consistency and avoiding issues caused by inconsistencies. Yet, many hospitals still suffer from the pitfalls of inconsistent pricing. Not having consistent pricing for items or services across locations can lead to many problems.
What practice owners would want to open their business up to profitability black holes or a loss in customer loyalty?
Of Course! So, we’ll cover four reasons to keep pricing consistent across multi-unit veterinary hospitals and why it’s important.
(TLDR; all the pitfalls of inconsistent pricing can be reversed with a unified practice management platform like Hippo Manager, across all multi-units – let’s show you how)
Why Veterinary Hospital Multi-Unit Price Consistency is IMPORTANT
The answer seems obvious. Because it is. PROFITS. BUT, it still remains a hot topic for veterinary practices looking at an acquisition or those managing providers across locations. Because, although there could be a good strategy behind pricing differences at veterinary hospitals, the end result leads to complications and missed profit growth opportunities.
Let’s take a look at some of these.
4 Reasons to Keep Veterinary Hospital Prices Consistent
All four items below have a direct impact on the profit margins at any veterinary practice. Because not only is pricing consistency important for the bottom line, it is also for indirect problems related to the bottom line.
KPI and accurate benchmark measurability
Prepare for being purchased
Avoid client confusion and therefore, reduced loyalty
Accurate comparing between locations
Multi-Unit Price Consistency Affects KPIs and Achieving Benchmarks.
The performance benchmarks set forth in veterinary industry standards are relevant because they take into effect common factors between practice types. These common factors are the same ones your veterinary hospital should be operating on.
Having all practices on the same system, charging for the same services with the same pricing across locations is imperative in properly measuring your KPI successes.
It is very difficult to understand your veterinary hospital KPIs and compare one location to another if the pricing structure is different and service lists aren’t the same. Because, pulling reports that are different names location to location, while still trying to reflect the same data at each location when those data points differ, is truly challenging.
Getting on the same practice management platform at each location is the solution. Being able to pull the same new client report, year over year revenue comparisons and more is the key to identifying where your practice lies on achieving these industry standards.
Problem: Inconsistent pricing and lists amongst multi-units lead to problems pulling consistent reports and understanding KPI successes.
Solution: Bring all locations under one practice management software, so all reports pull the same exact data points and can be easily compared to industry standards. Learn about data migrations to Hippo Manager, here.
Prepare for Purchase
Price consistency plays a big role when a veterinary practice or, multi-unit hospital is undergoing preparations for purchase. It is likely that the hospital is undercharging or, not charging at all for several items. This leads to a loss in revenue, loss in profitability and furthermore, a loss in overall practice value.
Imagine how out of hand that could get at a hospital with many locations, each operating on a different PiMS????
A common service list and price consistency is a must. It seems obvious to state that, however, to prepare a veterinary practice for purchase, it’s important to have consistency in pricing. This is so that the transition of goods and services is as smooth as possible during acquisition. A direct correlation between the value of the goods and services list can be made to the addition of the total practice value.
Problem: If charges are being missed or, items are being under-charged at a veterinary hospital, this could cause a decreased valuation.
Solution: Prepare for purchase with a common list of services and keep veterinary hospital prices consistent.
Avoiding Client Confusion
Clients who visit multiple locations within a veterinary hospital brand are “stickier“. They visit with their pets for all areas of care and are invested in the consistency of care given across the locations. These clients are interested in receiving a uniform experience and having confidence in what to expect at each visit. These type of clients are highly loyal and provide great value in referral marketing efforts.
One of the quickest ways to decrease customer loyalty is by confusing clients with inconsistency in pricing associated with care. Items and services that are uniform at multi-units, but do not reflect consistent prices will cause client confusion, a decrease in trust and reduced loyalty.
Reduced client loyalty means fewer visits. This puts patient care in jeopardy as well as affects practice profits.
Veterinary hospitals work so hard at building a strong customer base, why wouldn’t a focus on consistent experiences that includes pricing be at the top of EVERY LIST?
Presenting a consistent offering to consumers is a MUST in today’s competitive environment.
Problem: Inconsistent pricing across multi-unit veterinary hospital leads to an unreliable experience, client confusion and possibly, a loss in loyalty.
Solution: Use the same terms for all items and services at all locations. Ensure consistent pricing for all procedures, and items under the common term umbrella.
Accurately Comparing Location Performance
Veterinary hospital managers cannot fairly compare one location to another if they are on different systems. Because if multi-units are using different service lists and having a different pricing structure the baseline information isn’t the same.
In order to properly evaluate things like provider production, profit performance and standards between locations, a common pricing structure is integral.
Because it’s unfair to managers at multi-units when their locations can’t be effectively compared to hospital standards because of a lack of pricing consistency.
Problem: Multi-units could appear to be underperforming or, have inflated performance. This is because inconsistent pricing for common items and services doesn’t exist across all locations.
Solution: Giving managers the power to perform consistently against standards that are the same.
Pulling provider production reports and performance data at each location should be seamless within multi-units. This way, providers can be easily rewarded for successes. Also, hospital managers can quickly identify areas that need help and implement strategies across all locations. That’s great business efficiency!
See how Hippo Manager can provide pricing consistency across veterinary hospital multi-units and meet your KPI goals. Get a free trial today.