In this edition of Q&A with Dr. Q. we'd like to discuss pricing practices for animal hospitals. You might be surprised about how many factors are involved, and what influences the differences in pricing from vet to vet!
The primary source for pricing guidelines for all veterinary practices is the Ontario Veterinary Medical Association (OVMA). The OVMA has come up with pricing standards based standard expenses for an animal hospital, including supplies, rent and utilities, and employee wages.
This is, of course, a guideline, and there are variations based on any number of factors. A veterinary practice in downtown Toronto, for instance, will have higher property costs than a location in rural Ontario. The cost of living in different areas will affect what practice owners need to pay their employees.
A lot of veterinary professionals looking to manage their own practice end up letting emotion drive some of their pricing decisions. They don't want to let costs get in the way of proper care for their clients' pets. They may be concerned about being criticized for being overpriced. While that can be understandable given their industry and passion for animal care, this is not a way to run a business.
Setting pricing is one of the most challenging yet important elements of starting a veterinary practice. The best advice I can give you, based on my years in the pet care business, is to take those pricing guidelines from the OVMA, carefully review your own overhead, and make your pricing decisions based on those. Then you're well on your way to setting up a successful animal hospital!