Raise Fees Without Risking Loyalty
Your exam tables are outdated, your staff has to fidget with them to get them to work, but you can’t afford new ones.
You also can’t invest in that state-of-the-art x-ray machine, an updated version of your aged electronic medical record system, or hire a new admin for your understaffed front desk.
But you won’t raise fees out of fear of losing client and employee loyalty.
Fee increases can burden clients with unexpectedly higher costs.
Fee increases can burden receptionists and vet techs by forcing them to explain the reason for the fee increase to clients.
Without fee increases, though, you can’t provide your staff with better technology that smooths out client communication or updated equipment that improves the level of care you provide patients.
Be transparent with your team about the reasons.
If you aren’t transparent with your team about the need for these increases and how they are being reinvested, you risk everyone turning on you.
Take these steps to raise fees without alienating your staff and your clients:
Acknowledge that fee raises can place a burden on clients. Help your team understand that while you recognize the financial pressure increases might put on clients, you're also thinking about the medical record system that takes 15 minutes to load patient history. Emphasize that the goal is not to unnecessarily charge clients but to ensure the practice’s financial stability, maintain high-quality care, and provide an optimal working environment for the team.
Clearly communicate how the revenue from fee raises will be reinvested back into the practice. Your staff will immediately empathize if you tell them the fee increase is to upgrade that clunky, outdated X-ray machine. Even if it is not that specific, discuss possible areas where the income will be utilized, such as acquiring new technology, enhancing employee benefits, providing salary raises, investing in staff training or improving the overall client experience.
Even with this open communication, no one will be happy if you try to raise fees by 50%, or even 10%, tomorrow.
Set up incremental increases to avoid the burden of a huge increase overnight.
You still need to communicate with your team, but you make the increases more palatable by increasing yearly or quarterly.
Communicate with your staff and use my formula for quarterly increases in my guide on How to Set Up Incremental Fee Increases in your practice.
FAQs
How do I raise fees without losing loyal clients?
You can reduce client resistance by implementing smaller, incremental fee increases and ensuring your team can clearly explain the value clients receive in return. Consistent communication and high-quality care help maintain trust even when prices increase.
How do I explain fee increases to my veterinary team?
You should be transparent about why fees are increasing and how the additional revenue will be used. When your team understands that increases support better equipment, improved technology, staff development, and practice sustainability, they are more likely to support the change.
How often should I increase fees in my practice?
Many practices find that smaller annual or quarterly increases are easier for clients and staff to accept than large increases every few years. Regular adjustments can help you keep pace with rising costs while avoiding significant pricing shocks.
How can fee increases improve my veterinary practice?
When managed properly, fee increases can provide the resources needed to upgrade equipment, improve workflows, invest in staff training, increase compensation, and enhance the client experience. These improvements can benefit both your team and your patients.
What happens if I avoid raising fees for too long?
If you delay fee increases for too long, you may struggle to invest in technology, equipment, staffing, and employee compensation. Over time, this can create operational challenges that negatively affect both client service and team satisfaction.