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Yikes, what a quote! How does it sit with the practice managers and independent #veterinaryclinic owners out there? So many prices in vet med are set based on cost alone. Drugs are marked up with relatively little thought to their value to the client and patient alike but with much thought to their underlying unit cost. Vaccines are generally treated no different and laboratory testing certainly isn't either. Even more difficult pricing decisions, such as pricing complex dental or surgical procedures, are also often built on a cost-based model. As Rafi notes in his book the 1% Windfall however, customers don't care what it cost you. Customers care about the value your goods and services provide them. Failing to take value into consideration can lead to disgruntled and overcharged clients as well as to leaving considerable amounts of profit on the table - sometimes even in the same transaction or even across different quantities of the same product! When did you last overhaul your clinic's prices? Was value a key consideration of these deliberations? Don't fear if you haven't taken a long hard look at pricing yet, we're here to help from simple, single category projects to a complete pricing overhaul. Reach out via DM today to learn more about our services and yes, about our own value-based consulting fees as well.

  • "A price that's based on cost bears no relation to what customers might pay"

-R. Mohammed

Interesting! I’m getting more and more intrigued by this Rafi Mohammed guy’s writing. A corollary to this is the erroneous belief that customers who object to the cost of certain services and products have simply failed to comprehend the *value.* While this is certainly true in some cases, it does not apply to all. Sometimes the price is so high that a customer just can’t afford what you’re selling, period. They may totally understand the value, they may very well really *want* to buy your product or service, but it’s financially out of reach. This is like understanding the value and benefits of owning a Mercedes, but the luxury class category of automobiles does not fit your budget - unless you win the lottery. I think this is often a problem with veterinary pricing - the belief that if only clients truly understood the value, they’d be willing to pay. That assumption fails to take into account another essential consideration, which is the client’s ability to pay. The art of pricing means taking into consideration a number of variables - not just the cost to the clinic, as you’re stating here - but also the clients willingness AND ability to pay. For an *excellent* article on WTP/ATP by Jason Cohen, DM me for link.

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