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Leveraging the Growing Love of Animals and Pets. Veterinary industry revenues totaled $35.73 billion for 2015, and are forecast to total $37.30 billion for 2016, a 4.4% increase. There were 105,358 veterinarians in the US as of the end of 2015, a 2.7% increase from 2014.
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Leveraging the Growing Love of Animals and Pets • Veterinary industry revenues totaled $35.73 billion for 2015, and are forecast to total $37.30 billion for 2016, a 4.4% increase. There were 105,358 veterinarians in the US as of the end of 2015, a 2.7% increase from 2014. • According to the American Pet Products Association, pet owners spent $15.42 billion on veterinary care during 2015, a 2.5% increase from 2014, and are projected to spend $15.92 billion during 2016, increasing another 3.2%. • Expenditures for US veterinary services are forecast to increase at 4.2% CAGR from 2015 through 2021, with the increasing humanization of pets, pet lifespan and the aging senior population, which spends the most on pets, as the primary drivers.
Money Matters • According to the State of the Profession 2015 survey from dvm360.com, 69% of the participating veterinarians said that their 2015 gross revenues were larger than 2014 revenues and 63% said their 2015 net practice revenues were larger than 2014’s. • Of those participating in the survey, 53% said they expected their 2016 revenues to increase, 41% remain the same and 6% decrease. • The survey also found that a veterinarian earns more in a practice with 7 or more doctors, or $201,667, compared to $87,788 in a solo practice; $105,413, 2-to-5 doctor practice; and $116,125, 4-to-5 doctor practice.
Vet Business Buzz • In the dvm360.com State of the Profession 2015 survey, 70% of respondents said they didn’t aspire to own a veterinary practice, with the personal time required to be an owner as the biggest reason, at 43%. • Survey respondents said Internet sales Websites, at 62%, were their largest source of competitive business pressure; followed by traditional veterinary clinics and spay-neuter clinics, both at 52%, and vaccination clinics, 49%. • According to the survey results, 70% of respondents said they take all paying clients and provide them with most service while 23% said their practice primarily offers high-quality diagnostic and surgical services to clients who are willing to pay the fees.
Understanding Pet Owners’ Perspectives • The dvm360.com State of the Profession 2015 survey also reported that respondents had an average client base of 4,976, compared to 5,240 during 2012, and that their current average client transaction was $162.48. • Since 2012, the average client transaction had increased 15% or more for 16% of respondents; increased a little, 15%; decreased a little, 5%; decreased significantly, 3%; and remained approximately the same, 61%. • According to an analysis of quarterly veterinary visits and expenditures per visit for 2005–2014, visits and expenditures were greater during Q1, Q2, and Q3 than Q4, with revenue percentages of Q1, 27.9%; Q2, 28.6%; Q3, 24.9%; and Q4, 18.5%.
Vet Technicians Have Their Say • In The National Association of Veterinary Technicians in America (NAVTA) 2016 Demographic Study, 40% of respondents said the greatest challenge in the practice was office dynamics/communications/personnel, with client non-compliance second, at 39%. • Of those responding to the survey, 51.3% said “I am very satisfied and will stay in veterinary technology” and 28.6% said they will “probably stay”; however, 54% said low salary and benefits were the top factors negatively affecting their job. • In terms of digital media use in the practice, Facebook, at 88.5%, and a Website, at 87.8%, dominated, with Twitter just 15.3%; Instagram, 10.1%; Google+, 9.8%; and a blog or e-newsletter, 0.5%.
Advertising Strategies • Larger veterinarian practices with the ad resources to use TV should emphasize the “one-stop” nature of their services, so prospective clients are less likely to require visits to more than one vet for any required services. • Since various products generate only small percentages of veterinary practices’ revenues, practices may want to promote a discounted bundle of sample products with every regular/annual exam to increase clients’ awareness of those products and their benefits. • With pets living longer, a veterinary practice may want to brand itself as a specialist in aging pets, emphasizing nutritional counseling and educational seminars/classes to teach pet owners what they can do to maximize their older pets’ quality of life.
New Media Strategies • Since only 0.5% of veterinary practices utilize a blog or e-newsletter, a local practice that actively uses these channels can establish a competitive advantage. These channels are more likely to create the personal connection that clients want with their veterinarian. • Stories in a video format is one of the strongest types of social media content, so veterinarians should encourage, and even incentivize, their clients to post short video stories of their life with their pet. • Social media and email campaigns are perfect channels for an enterprising veterinarian to announce a monthly surprise visit to a local dog park where he or she hosts an impromptu educational session, quick examination of dogs’ teeth, exercise tips, etc.
