What are we doing?

As we enter the season when many veterinary hospitals start discussing price increases, I find myself deeply concerned about the direction our industry is heading. It seems that the critical relationship between price and volume is being overlooked. We've told ourselves repeatedly that veterinary medicine is recession-proof, but I believe this notion is misleading and potentially dangerous.

The Reality of Price Increases

Let's consider the current economic climate. We know pet owners are dedicated to caring for their animals, but what happens when economic pressures mount and we continue to raise prices yearly? If veterinary medicine is to survive and thrive during tough economic times, we must be smart about managing our pricing. Yes, veterinary practices can weather a recession—but only if we focus on minimizing price increases or avoiding them altogether while improving our operational efficiency.

However, if we persist in raising prices without considering the impact on our clients, we risk forcing them to make heartbreaking choices between caring for their pets and meeting their basic needs. This will undoubtedly lead to a decline in our client base. And once that base erodes, the downstream effects could be catastrophic for our industry.

The Domino Effect

If we lose clients due to unaffordable pricing, the consequences will ripple through our practices. We may be forced to lay off veterinarians, technicians, and support personnel. In extreme cases, hospitals may have to close their doors entirely. And what happens then? With fewer jobs available, the attractiveness of our profession diminishes.

This is particularly concerning given the number of new veterinary schools to come online in the next five years. Where will these graduating doctors find work if we’ve priced ourselves out of the market and driven our clients away? By continuously outpacing regular inflation with our price increases, we inadvertently make pet ownership a luxury that only the wealthy can afford. This could strip the joy of pet companionship from countless individuals and families simply because they cannot afford the cost of care.

A Cautionary Tale: Starbucks

We don’t have to look far to see a parallel in another industry. Starbucks, once a symbol of affordable luxury, has faced significant challenges due to aggressive price increases. While its stock has fluctuated and it has implemented new strategies to retain customers, the reality is that many people now see Starbucks as overpriced. This has led to a decline in customer loyalty and foot traffic, particularly among those who are more budget-conscious. Starbucks' situation is a stark reminder of the risks associated with pricing strategies that fail to consider the broader economic context.

The Long-Term Risks

The risks of our current trajectory extend beyond losing clients. If we continue to raise prices without regard for the economic realities pet owners face, we could eventually draw the federal government's attention. If our industry is perceived as engaging in price gouging, we may become the target of regulatory scrutiny. Should that happen, the landscape of veterinary medicine could be altered irreparably, and not for the better.

A Call to Action

So, what are we doing? Who will take the first steps to keep prices steady this year? Who will focus on expanding their customer base by maintaining affordable prices? Who will innovate by lowering the cost of annual exams to drive volume, even if it takes a year or two to see the full benefits? Who will play the long game and work to have a large customer base ready when the economy improves?

The choices we make today will determine the future of our industry. Let’s be wise and ensure that veterinary medicine remains accessible to all who love their pets—not just those who can afford premium prices. By doing so, we can safeguard our profession, support our clients, and continue to provide the compassionate care that defines us.

It's time to reconsider our pricing strategies before it’s too late.