A Changing
Business Environment
UK veterinary practices are facing a rapidly
changing business environment. The DTI Supply of Relevant Medicinal
Products Order and the new Veterinary Medicine Regulations (which
came into effect on 31st October 2005) are combining to change the
way practices operate and earn income from their clients.
Competition Commission remedies mean the pet-owning British public
and UK farmers have the option to source animal medicines from alternative
outlets, such as registered pharmacies and competitor vet practices
once they have a prescription from their vet. Opening up of competition
means gone are the days when practices can rely on a healthy margin
on medicinal products prescribed and supplied.
In the large animal sector, vets are putting more of an emphasis
on herd and flock health planning where an ability to demonstrate
the financial benefits of more proactive programmes will be crucial
to success. In small animal practice, an ability to recognise the
lifetime value of the client relationship and implement effective
service initiatives that keep pet owners ’sold’ will
be the route to better profitability.
As a result, practices are now turning increasingly to marketing
principles and more effective communication to demonstrate the value
of their total service offering. After all, if you develop and sustain
an excellent working relationship with the client, it is unlikely
they will want to source their animal health consultancy input and
medicinal supplies from anyone else.
This new business environment creates good communication opportunities
for market-orientated veterinary practices. The veterinary profession
recognises the need to become more business-focused and marketing
aware, but also recognises that it needs help. Effective communication
becomes ever more important in this sector and it is the organisations
and veterinary practices that do it well that will thrive.
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