Pricing is a crucial part of practice success. When implemented strategically, not only does it benefit our bottom line, it also helps clients understand the real worth of veterinary services and encourages regular veterinary care. The key to successful pricing is to set it according to value, not cost. This model is called value-based pricing, and the AVMA has a new resource to help you implement it in your practice.
4 steps to value-based pricing
Value-based pricing focuses on the tangible worth of products and services to clients, rather than what it costs us as veterinarians. It demonstrates to clients the importance of veterinary care and enhances the way they perceive the value we provide. It also can help us build a more successful and sustainable profession overall.
Our webpage avma.org/Pricing guides you through four steps to bring a value-based pricing model to your organization. They are:
- Focus on a single market segment.
- Compare your offerings with those of your next-best competitor.
- Understand what makes you different.
- Place a dollar amount on what differentiates your practice.
You’ll also find helpful information on these pricing strategies:
- Bundled pricing, in which several products or services are sold as a group for a reduced price
- Preferred pricing, where a client may receive a discount as a reward for previous services or an incentive for later ones
- Tips to communicate pricing with clients
Whether you’re a one-person shop, an independent practice with a few veterinarians, or a larger clinic, AVMA has resources to help you build financial stability and sharpen your competitive edge.
Explore more tools at avma.org/PracticeManagement.