AVMA tool can help inform practices' business planning
AVMA members now have access to a tool that makes it easier to estimate the potential size of their local companion animal veterinary market and to estimate the share of that market they serve. The new AVMA Market Share Estimator tool, which debuted in mid-March, can be used to support business planning, including by tracking a practice's performance over time or identifying whether a practice is over- or underperforming.
The Market Share Estimator (PDF) is a downloadable worksheet that walks users through how to calculate market share and the potential veterinary business in their area. The formulas provided in the worksheet take into account the specific location of the clinic and the animal species that it treats.
The tool was developed on the basis of AVMA research on pet ownership patterns, including the spending habits of pet owners, which also appears in the 2017-18 edition of the AVMA Pet Ownership and Demographics Sourcebook. The worksheet goes through the following steps:
- Identify the practice's service area.
- Estimate the number of households in the area.
- Estimate the total number of pets, by species.
- Estimate the total number of patients, veterinary visits, and revenue potential for the service area.
- Calculate the practice's estimated share of the potential market.
The tool produces an estimate of market share on the basis of national averages. With this information, owners or managers can then assess their practice's current share of the market and identify areas for improvement.