The New Normal
Up until the economy turned upside down, over three years ago, the veterinary profession had been riding a wave. Even the most long established practices were seeing double-digit growth on an annual basis. The number of clients and transactions were constantly growing and the only issues with compliance came from the doctor or staffs as clients were relatively ready to accept the needs as presented by the doctor.
And then…the world, as we knew it, changed. Over the last three years or so, on average, the number of transactions that we are seeing is declining. The annual growth has flattened and in some cases there has been a retraction. Staff, including doctors, has been laid off or contracts not renewed. And the way we go about business has forced a whole new thought process
Everybody’s asking, “What can we change?” What should we do?
The answer…GET USED TO IT!!
Projections are for anywhere from seven to ten more years of similar uncertainty.
There are practices that have thrived (comparatively). What have they done?
- They have kept very close eye on the budgeted numbers for staff and inventory.
- They have cut back on the non-productive, non-engaged staff, and focused on fewer people who do a better job and are more committed.
- They have minimized their inventory to what is needed on hand and what is turning over. No more major buy-ins of product.
- They have focused their marketing budget on their existing clientele and reached out and touched them more often and with different modalities
- They have taken on the social media as a way of bonding their clients and relationship building
- They have accepted the new normal and are netting more while grossing less.
Here is the challenge---can you do the above AND continue to do the above after things start to straighten out? If so, then you have established a new set point, a new homeostasis, a new normal and you will be ready for the future.
Are you ready for the new normal? What are you doing to reset your set point? How are you getting by? What’s your new normal?
This is an interesting subject and I hope to get multiple comments.
ReplyDeleteHello. We are focusing on developing our human resources through training. We are training our doctors and support staff on communication skills and customer service. We need to improve customers compliance, and we are sure that better communication helps.
ReplyDeleteThat sounds interesting, Alex. How do you build a training program, though, on customer communication? Any books or sources you would recommend?
ReplyDeleteI used to have enough clients that cared that I had laser, ultrasound, gave all anesthetized patients fluids et. to keep me going. Not so anymore, so many now are price concious than before. Mnay clients now request fewer services and many have gone to the cheap place in the next town. It is worth it to them now to drive 60 miles for a $50 spay. We have lowered our spay and neuter prices some, we were higher than most in our area.
ReplyDeleteHi Hobson,
ReplyDeleteYours is a very common occurrence in business. What was enough before, no longer is. I feel that if we are to weather the storm, we will have to take innovative steps. I also believe that the answer lies outside our profession. Any comments?
Well put, Al.
ReplyDeleteWe need to learn how to change to the environment around us. Fees are one way. Increasing value, service and time are another. Hiring higher quality staff and taking the time to train them. It is NOT the time to lay low in your bunker. IT is the time to ask your clietns--WHAT IS IT THAT WE CAN DO FOR YOUR AND YOUR PET?
IT is all about relationships and trust.
I believe the situation is more perceived than real. Let me explain what I mean. Have you been to an Apple store recently? Have been both ticked off and at awe at how busy they are? Did you know Apple grew 15% in the last quarter? People have money to throw at the things they want and Apple us more than happy to cash in on it. It's time we stop playing victims and do something about the new reality. If all we do is copy from each other or make only marginal efforts, results are only going to improve marginally. There is so much opportunity out there and the spoils will go to those who take massive action. Show me a practice having taken massive action and I'll show you a successful business. Commiseration can only help so much.
ReplyDeleteWell, my opinion is that we should pay a lot more attention to what's working in other industries. I believe we have the tendency to copy from each other and maybe even to wait until the storm blows over. I personally don't buy into the belief that things cannot be better. They may not be as they have been before, but does that mean they have to be worse? I still see enough practices growing even in this economy and I think they have a huge advantage as those that do not adopt new strategies are going to see an even steeper uphill battle. We may see fewer practices, but those remaining will be more successful as they will be nimble, adaptable, business oriented, focused and non-compromising when it comes to client experience. I think an important question we can all ask ourselves is, "In what way am I different from the rest?" If nothing comes up, then how can our clients tell? If our clients cannot tell the difference, why should they pay more "for the same service"? I wouldn't. So?
ReplyDeleteClients in general behave differently than they did 5 years ago. Many former 'A" clients are now 'B' and "C' clients, coming in less frequently and declining services they once would readily chose. Many are downsizing their pets, not replacing ones that die, some going petless. The 'C' clients we used to let go elsewhere (Dr Cheapvet with his $50 spay) need to be courted to come back. We must be more competitive with shopped fees and wow them when they come back.
ReplyDeleteSome great points. Additional thoughts:
ReplyDelete1. Only employ the BEST people possible and don't add any new ones unless they fit your culture AND your budget.
2. As Hobson noted, focus your marketing budget on your existing clients
3. Stay competitive on shopped items but spend time and give value on the non-shopped items.
4. More time in the exam room can be translated into value and quality and thus can be charged more for.
5. Get'em. Wow'em. Keep'em--how? Communicate with them frequently and using modern media.
6. Keep your inventory to what you need NOW.
7. What industries are still working---higher end service industries.
8. What industries aren't working---those that can't figure out if they are going to be high end or low end and are stuck somewhere in the middle without providing service or value.
ANd I could go on...