Keep Pets and Profits Healthy
Keeping pets healthy isn’t business—it’s your passion.
So, raising fees?
That’s not exactly at the top of your to-do list over things like diagnosing, surgery, and care plans.
But then…
You feel the financial pinch every time your practice needs new equipment because you don’t have the profit to reinvest.
You and your staff are putting in long hours, but your profit margin doesn’t match.
The cost of living keeps rising, and your practice falls further and further behind on employee pay, equipment upgrades, and the industry standard.
Raising fees needs to be done.
Think about how the cost of living has increased just over the last year. If you haven’t upped your fees in the last 5 years, think how behind you are.
For maximized profitability, raise fees beyond just keeping up with the Cost Of Living.
My recommendation: raise fees incrementally every year by:
The cost of living + your desired profit margin.
That way, you keep your profit margin up and have the profitability to invest in better care.
Use my formula for quarterly increases in my guide to setting up incremental fee increases in your practice.
FAQs
How often should a veterinary practice raise fees?
Ideally, veterinary practices should review and adjust fees annually. Regular, incremental increases are typically easier for clients to accept than large increases made after several years of stagnant pricing.
Will raising fees drive clients away?
Most clients expect prices to increase over time due to inflation and rising operating costs. Clear communication and gradual adjustments can help maintain trust while ensuring your practice remains financially healthy.
How much should I increase my fees each year?
A good starting point is to increase fees by the current cost of living or inflation rate plus your desired profit margin. This approach helps your practice keep pace with rising expenses while generating the profit needed to invest in your team, equipment, and patient care.
Why is profitability important for a veterinary practice?
Healthy profit margins allow practices to invest in updated equipment, competitive staff compensation, continuing education, technology, and improved patient care. Profitability creates the financial stability needed to support both your team and the pets you serve.