Reasonable costs/fees

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I'm going to have to disagree with everybody here and say the practice charging $0 exam fees is pretty brilliant. They took the one item that they know every client will ask the price off, and made it their loss-leader.

All they are doing is taking a business approach to running their business. Lets assume they wanted to improve their practice's financial situation. They could either raise their prices to generate a larger profit margin on their current case load(which will likely shrink due to increased price). Or they could lower their prices to generate a smaller margin on an increasing case load (due to their lower price drawing in new clients). If the practice is already consistently maxed out with appointments, then the former is the logical direction to go. But if the practice is fairly slow and has a lot of under utilized labor, then the latter might be a good consideration. If you can't get the clients in the door for the exam, then its impossible to charge them for the vaccines, hw/4dx test, and fecal exam that make the exam profitable.

I thought about this, but not sure it applies here. They seem to have particularly low prices on the routine stuff, and apparently don't do the higher margin stuff like dentals and surgeries, etc. Otherwise I would agree that could be a good strategy.
 
I thought about this, but not sure it applies here. They seem to have particularly low prices on the routine stuff, and apparently don't do the higher margin stuff like dentals and surgeries, etc. Otherwise I would agree that could be a good strategy.

That's the part I'm a bit baffled about. I can see loss leaders - that's just a basic business strategy - but you have to have margin <somewhere>. I don't have any problem with the basic strategy itself, but I'm curious where that vet is making any money. The only really commonplace service (before you get into things like behavioral consults, rehab work, etc.) I didn't see on that list was (non neuter/spay) surgery.
 
Well, i live in Puerto Rico and people complain about high cost of veterinary visits here... However i feel like they are significantly cheaper.


Regular visit (between normal hours) 20-35

Emergency (holidays, after 9pm) 50

Spay/neuter both cats and dogs 150-300 depending on size

vaccines ~20

dental ~150 includes everything

I don't know about the microchip

fecal ~10
 
As a veterinarian who has practiced in a variety of settings, I'd like to point out that "low cost, high volume" practices (like we may be talking about with the guy mentioned above with the free office visit) often are MORE profitable than higher-priced clinics. Those sorts of clinics often have VERY low overhead due to shabbier facility, less advanced equipment, cheaper drugs, etc. You run people through like cattle, limit yourself to quick/easy procedures, and can make really good money doing it. If you're looking to get rich, the low-cost/high-volume model is great... which goes against the popular belief that those guys are doing it out of the goodness of their hearts. Many owners of your more advanced/high-tech veterinary practices are actually making LESS money than Dr. Cheap - they're just less willing to compromise on their quality of care. Quality medicine costs money.

I'm not necessarily saying that the specific doctor mentioned above is awful - maybe he funds his clinic through other sources and really does offer low costs for the good of the patients/clients (or his costs on the non-shopped fees are way higher than other vets in the area). I've worked in clinics with a $150 spay, though. You CAN'T include pre-anesthetic bloodwork, appropriate premeds, IV catheter, propofol, IV fluids, a sterile instrument pack, sterile gloves/gown, cap/mask, pulse ox/ECG/BP monitoring, dedicated anesthesia assistant, recovery monitoring, pain injection and pain meds to go home at that price. Providing quality care costs money. The $150 clinics are typically telazol induction without a catheter, surgery with only a pulse ox for monitoring, and then placed in the back to recover. It works (usually), but not a level of care that I'm comfortable providing. In my pre-vet days, I didn't see any problem with it and revered the Dr. Cheap I worked for as a god... now I've realized how much of what he did would be considered malpractice and how terrible his level of medicine really was!!

About eight months ago, I left a low-cost clinic and now practice at Banfield.... where our spays are about $350 but include everything that I consider important in a spay. I think we're the ONLY practice in our area that includes all of the items I mentioned as 'quality' above. Sure, many of our clients initially think we're priced ridiculously, but when I educate them on what questions to ask when they're calling around for price quotes (one practice in our area uses the same surgery pack of the entire day's surgeries!), most people actually ask for a sheet of paper and take notes on the questions I suggest asking, then they often end up calling back to schedule with us. Some don't - and that's okay, because at least they know what they're compromising on after I've educated them. I will flat out tell people "If money is your first priority, then yes - you can definitely have this surgery performed cheaper. If you're concerned about the level of care your pet gets, though, then here's a list of things I WOULDN'T be willing to compromise on...." Price comparisons are completely useless unless you're comparing apples vs. apples. There is WAY too much variation in quality of veterinary care to assume that a spay is remotely similar between two practices.
 
I'm going to have to disagree with everybody here and say the practice charging $0 exam fees is pretty brilliant. They took the one item that they know every client will ask the price off, and made it their loss-leader. .

Loss leaders have no place in a medical profession, in my opinion. It might lead to short term profits, but it devalues the professional, and the profession. I can only assume this vet sees himself as no different than the owner of a hardware or convenience store, but he's wrong - and promoting himself and his veterinary colleagues to the public that way will ultimately do himself, and the profession poorly.

Those of you planning on entering this profession in the future should think about what those business strategies will mean to you when you graduate in several years; because ideas like those will change the professional marketplace (and, as such, how you will be able to practice) severely. How many jobs (and what kinds of jobs) will be available if the public thinks our profession is worth nothing?
 
About eight months ago, I left a low-cost clinic and now practice at Banfield.... where our spays are about $350 but include everything that I consider important in a spay. I think we're the ONLY practice in our area that includes all of the items I mentioned as 'quality' above. Sure, many of our clients initially think we're priced ridiculously, but when I educate them on what questions to ask when they're calling around for price quotes (one practice in our area uses the same surgery pack of the entire day's surgeries!), most people actually ask for a sheet of paper and take notes on the questions I suggest asking, then they often end up calling back to schedule with us. Some don't - and that's okay, because at least they know what they're compromising on after I've educated them.

I agree that the Banfield spay/neuter estimates include necessary things that other clinics won't include.... but $350 is seriously astounding to me. I work at a Banfield currently and ours range from $195-230, and include the same care and protocol as any other Banfield practice. Obviously different areas have different economic conditions that contribute to pricing but it would seem like the profit margin is being upped or something with that high of an estimate.

I will flat out tell people "If money is your first priority, then yes - you can definitely have this surgery performed cheaper. If you're concerned about the level of care your pet gets, though, then here's a list of things I WOULDN'T be willing to compromise on...." Price comparisons are completely useless unless you're comparing apples vs. apples. There is WAY too much variation in quality of veterinary care to assume that a spay is remotely similar between two practices.

I agree with this statement to a point- I will be the first to admit that I hate dealing with penny pinchers and people who think we run the clinic off of giggles and laughs.... however, if I was quoted $350 to get my dog spayed, I would definitely seek a second estimate elsewhere. I agree wholeheartedly that you get what you pay for a lot of times and just like you don't go around to find the cheapest tattoo shop to permanently ink your body, you wouldn't want to go to the dollar store for a spay either. But, just because someone isn't dipping into their 401K to get their dog spayed doesn't necessarily mean quality is going to be sacrificed. It's very true that there are large variations in care from practice to practice but there are still many practices out there that are reasonably priced and have excellent doctors and technicians running them.
 
I may not be 100% accurate on the $350 estimate (quoting spay/neuter prices is my assistants' job), but if I recall correctly that was the price last time we checked for an adult dog spay over 50 lbs. Obviously, puppies & small dogs are significantly less.
 
Loss leaders have no place in a medical profession, in my opinion. It might lead to short term profits, but it devalues the professional, and the profession. I can only assume this vet sees himself as no different than the owner of a hardware or convenience store, but he's wrong - and promoting himself and his veterinary colleagues to the public that way will ultimately do himself, and the profession poorly.

Those of you planning on entering this profession in the future should think about what those business strategies will mean to you when you graduate in several years; because ideas like those will change the professional marketplace (and, as such, how you will be able to practice) severely. How many jobs (and what kinds of jobs) will be available if the public thinks our profession is worth nothing?

We already do it though. Most general practices wouldn't be able to maintain their current exam fees if they were no longer able maintain their current margins on vaccines, prescription drug, food, and other sales that are generated from the exam.

Isn't one of the big issues were currently facing in veterinary medicine exactly this? For years vets subsidized everything in their practice with profits generated from flea and heartworm meds, and now that the online pharmacies and retail stores are eating into this and now they are feeling the pinch?

Similar concerns with vaccines labeled for 3 years instead of 1.

It's important to think long term regarding whats best for the profession, but at the same time some are more worried about whats necessary to keep the doors open, and the bills and loans paid.
 
We already do it though. Most general practices wouldn't be able to maintain their current exam fees if they were no longer able maintain their current margins on vaccines, prescription drug, food, and other sales that are generated from the exam.

Most of the sales I see generated from the exam are items whose need or utility is generated from the exam. The rest of the sales are generated from the owner's wishes (eg nail trims - I might not think they're medically needed, but the owner wants us to do it). Good medicine is good business, and loss leaders shouldn't be necessary to trick clients into spending more. Maybe where you are, exam prices generally are unrealistically low in an effort to lure clients in for supplementary sales, but I haven't seen much of that where I work (and I am a relief vet who works in 8 or 10 different practices a year). Perhaps it's a difference in regional culture or professional regulations? I know a few clinics who use loss leaders for telephone shopped items (including exam fees), but those are the minority; I don't think it's appropriate for them either, and I think it's bad for the state of the profession.

Actually, food has relatively little markup and generates very little profit for the clinic. Clinics generally carry it as a convenience for their clients and not as a profit centre, so in that sense it might be considered the "loss leader" to get clients in the door for other retail items.
 
Most of the sales I see generated from the exam are items whose need or utility is generated from the exam. The rest of the sales are generated from the owner's wishes (eg nail trims - I might not think they're medically needed, but the owner wants us to do it). Good medicine is good business, and loss leaders shouldn't be necessary to trick clients into spending more. Maybe where you are, exam prices generally are unrealistically low in an effort to lure clients in for supplementary sales, but I haven't seen much of that where I work (and I am a relief vet who works in 8 or 10 different practices a year). Perhaps it's a difference in regional culture or professional regulations? I know a few clinics who use loss leaders for telephone shopped items (including exam fees), but those are the minority; I don't think it's appropriate.

As a side note on "optional" services, the SA general practice I work in makes $10k a year on toenail trims.
 
As a side note on "optional" services, the SA general practice I work in makes $10k a year on toenail trims.

I wonder what it costs them in staff time?

I know of one vet clinic that stopped doing canine nail trims - they said they didn't like doing them, the dogs didn't like getting them done, and they thought they had better things to do than be a groomer for the clients' convenience. Brave of them, and I don't know how it's worked for them with respect to finances or client retention, so I don't know the moral of the story.....but I thought it was interesting.
 
This has been a super interesting discussion to follow! Lots of great insights, guys 😀

The hospital I work at is in a fairly affluent area of California. All surgeries include the works (e.g. pre-anesthetic blood, IVF, etc) and are based on size.

Office visit: $54 (dogs, cats) $63 (exotics)
Spay: $500-600
Neuter: $300-400? not sure
Vaccination: $70 (for 3 vax)
Dental: $600-700
Fecal: not sure
Microchip: $50 by itself, $40 during surgeries
 
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