Vet Clinic Fee Increases – 10 ways to make them more palatable for your clients so you can give your team a pay rise
Staff not feeling the love right now
Are staff motivation and clinic price increases connected? In this life according to Julie episode I’m going to show you how they are.
But first – some of the backstory so you can see how the dots are all connected 😊
We – VetStaff – have had a bit of a run of calls lately – starting just before Christmas and still going strong – from vets and nurses who’ve had their annual performance reviews – it’s that time of the year for some clinics and – the vets and nurses who’ve called us – have been told, when they’ve brought up the matter of a salary review – that “surely they can think of something other than the $ to come to work for” …
Hmmmm… now, if we’d only been told about a couple of some such conversations, I’d just pass it off as being “interesting” … but it’s not just a few … like I said, it’s enough for me to start noticing what could become a bit of a thing … a bit of a trend…
Further, these are vets and nurses who’ve been with their clinic for years… they’ve well and truly earned their stripes and demonstrated their loyalty… in today’s veterinary employment world, they’re very valuable assets.
But they’re just not feeling the love back from their clinic owners – whoever and wherever they are – and their loyalty is starting to get a little shaky.
Let’s get one thing clear – unless you’re a trust fund baby (and I’m not sure I know any) – we all go to work because we need to put a roof over our heads and food on the table. In other words, we all go to work for the money.
Some may not need to earn as much or work as long hours as others to make that happen – perhaps because they’ve got a spouse who’s the main income earner … or they’ve got their own successful side hustle going … but whether you’re going to work as the owner of the clinic to pay the wages and your clinic’s rent or mortgage, or as an employee, we’re pretty much all going to work for the money!
MOST of us need to work… and certainly ALL of the people who’ve been calling me lately NEED to work.
For the money!
It’s also very easy, in the 21st Century, where there’s lots of talk about how meaningful the work we do is what’s important – and it absolutely is! – but, don’t overlook the requirement to earn a good living is critical as well.
… where you – and/or your team – don’t have the constant thought in the back of your head about how you’re going to afford school uniforms and text books for your kids this year with the eye-wateringly high inflation we’re all living with right now …
… or have you got enough money to buy the new tyres that your car needs to get it’s upcoming Warrant and you need your car to get you to work …
… or you need your car to get your elderly parents or grandparents to their medical appointments …
… or have you got enough to buy your 10-trip or monthly bus ticket … or pay the power bill or phone or internet bill ..
Or even to buy decent food – because we all know it costs more to eat good, clean food, than it does highly processed plastic food of dubious origin…
Things are tough!
Our pay packets aren’t going anywhere near as far as they used to … in fact, they’re not going as far as they used to this time last year … remember those times?
Back when the whole country had been lifted from the Traffic Light levels and we could get away to the beach for our summer holidays…?
I’m sure you get the picture – right now, money in our back pockets is what’s important – for just about everyone.
The owners of clinics we’re speaking with are reluctant to raise their fees because they’re worried their clients won’t be able to afford health care for their pets … I get that, I really do … that’s a horrible predicament to be in.
But if you don’t increase your fees – and this was workshopped at the NZVAs Business Symposium in Christchurch last year – if you don’t increase your fees regularly you’re doing your team and your clients a disservice.
Why?
How?
You’re doing your priceless and currently-hard-to-replace team a disservice because you can’t give them a pay rise when they so desperately need it and you’re doing your clients a disservice because when you do increase your fees, it’s in big chunks that make them gasp.
We’re in a world now where we expect to have price increases passed onto us … we’re in inflationary times and that’s what happens.
Inflation is as foreign as Aliens to some of your team
But first – if you’ve got your fingers crossed that your team, right now, doesn’t have the cost of living front and foremost in their minds – here’s something to think about…
For many of your employees, they’re living in “foreign” times of high inflation. Maybe you are too.
You (maybe) and them (maybe) have never lived this way – it’s like how none of us have ever lived through a global pandemic before – it was all foreign, scary and unprecedented.
We didn’t know what to do, how long it was going to last and how to get through it….
According to the NZ Department of Statistics, the current (as at recording this episode) annual rate of inflation of 7.3% is at a 32-year all-time high.
Think about it – some of your team wasn’t even born in 1991! Or maybe they were, but were too young to remember what it was like … here’re some things to jog your memory or give you a history lesson:
Back in 1991 Dame Cath Tizard was our Governor General – may she RIP but we buried her a few years’ ago.
Jim Bolger was our Prime Minister.
The Mayor of Auckland was Les Mills – most people only know him for his successful global gym business – did you even know he was a former mayor?
Peter Burling was born – six years ago he was helmsman to win the America’s Cup. Six years’ ago.
Wheel of Fortune debuted on TV 2 – is it even still going? Who remembers that?
In July of 1991 we had that “thing” called The Mother of All Budgets – delivered by Ruth Richardson. That Mother of All Budgets is still referred to today!
If any of those things are unfamiliar to you or your team, then please – cut them some slack – because high inflation is foreign to them … they’ve never had to do it before and don’t know how.
So it’s no wonder the $$ are important to them right now.
Millennials and Gen-Z
If you’re a Millennial or a Gen-Z-er – or you’ve got a team comprising Millennials or Gen Z’s, this is unheard of for them!
So it’s no wonder that, right now, the dollars are important!
The Gen-Xers and young Baby Boomers will remember having a mortgage rate of 16% or so, but today that’s unheard of.
I’d just started work when mortgage rates hit an all-time high at 18.45%… back then, everyone was motivated by the $$ as well.
It’s no wonder 5Y vets who’re on $95k are getting a little antsy about whether you love them enough or not, when today’s new grads are starting – for the most part – on $75kpa.
Now – let’s look at ways you can make increasing your fees a less bitter pill to swallow so when your team lets you know they are motivated by the $$, hopefully, you’ve got a way to make it a win/win discussion.
I’m coming at price increases for possibly, a completely different way than you might be used to … I’m wearing my Marketing Hat to give you different ideas that’ll help reinforce to your clients they’ve made the right choice to be one of your clients – rather than the clinic down the road that might be cheaper.
#1 – showcase your team’s professional credentials
Let’s start with showcasing your professional skills. I’ve said this numerous times on this podcast – shoutout your teams’ skills and qualifications – through the language you use and how you charge – especially your nurses’ skills.
Do you have your teams qualifications front and centre on display at your clinic for everyone to see? If not, why not? It cost them thousands of dollars + blood, sweat and tears to get the qualification they have – show them off!
What about post grad studies? What about areas of specialisation they’ve developed along the way?
Who on your team has done advanced dentistry study? Or ultrasound? Or rehab? Show them off as well!
When your clients can see that their fur babies are being treated by people who more than know what they’re doing – who have advanced qualifications – they’ll be less inclined to moan about the fee.
#2 – Tech and Equipment
How often do you let your clients know when you’ve invested in an expensive and super-sophisticated piece of technology or equipment? An easy way of doing this is through newsletters. It might be something you take for granted – but your clients deserve to know their fur babies’ diagnoses is made possible because of whatever it is you’ve just invested in.
Also – even if you’ve had the equipment for a while but it’s the first time since the client was in last – still get excited about it. Because it’s still new for them.
One way you can bring attention to all the sophistication you have on board is to write “favourite gadget” posts / articles. Each week invite a different person on your team to share their favourite gadget and why. Turn it into something that looks sharp and frame it – put it on the wall in reception – or on the tv screen in reception – for people to read about while they’re waiting.
#3 – what other services do you offer your clients might not know about?
What other complementary services can you offer your clients? This lets them know you’re more than “just the vet clinic”. You could also be the place where they can bring in their dogs to be pampered and groomed.
Or to see a behaviour vet.
Or for physiotherapy.
Pick a “service of the month” or week – and talk about that on all your social media channels – invite client testimonials.
The more your clients perceive that you’re offering a great service, the less inclined they’ll be to whinge and moan about price increases.
#4 – upcoming training and development
I mentioned showcasing the qualifications your team already has – including CPD type study. You can also be excited about sharing what’s on your clinic’s educational agenda as well.
Doing this means you can start growing a waitlist of clients who can benefit from this training.
Let’s say you’re doing brachycephalic surgery training – let your clients know why this is important, who’s doing it and when. Create educational posts and information about the benefits – and not just for the current clients who would definitely benefit but for others as well.
The reason you shout it loud from your rooftops is because – in the case of the brachycephalic example – you don’t know who’s thinking about buying a brachy-breed … you’re helping to give them more information about what they might be in for.
The more you can educate your clients and demonstrate your professional expertise – the more ‘okay’ they’ll be about you increasing your fees.
Now, I’m not saying they’ll like it, but it makes it more palatable for them to swallow.
#5 – showcase your reviews and testimonials
Some clinics showcase Pets of the Month – you can also showcase a Review of the Week, with its backstory.
Again – you’re demonstrating your clinic’s professional expertise.
#6 – your clinic’s presentation
Clients will be more inclined to whinge and moan if your clinic and team don’t look sharp, clean and well-presented.
If your clinic has a bit of a dilapidated look about it, clients will be more inclined to think that you’re only in it for the money – because you’re charging enough but you’re obviously – rightly or not – not reinvesting it back into the clinic to benefit them.
So sharpen up your look.
Take a critical look around your clinic. Assume the eyes of a client. What do you see? Are there boxes that need to be put away that you’ve been meaning to, but haven’t and now you don’t see them any more?
What does your carpark look like?
What about your signage – is it fresh or does it look beaten up?
Are your windows clean? Are the nose prints fresh or old? The vinyl on the floor.
One very objective way to see how things is to take photos. Our mind is very good at filtering things out but the camera lens doesn’t – it captures everything.
So go take some photos and look at how your clients might see your clinic.
What about uniforms? Are some of your team in need of fresh uniforms?
My husband, Alan, whenever he takes our cars in for a service or a warrant, he’ll always wash and vacuum them out. He’s pretty fanatical about our cars. They’re cleaned and vacuumed often. But he takes extra effort before a service.
Why? Because he believes the people doing the work will take more care because he’s taken care. We respect things that are looked after.
The same is true at your clinic: take care with your presentation and your clients will respect your professional opinion – and the fees associated with that opinion – more easily.
#7 – be clear and transparent with your invoicing and fees
Keep clients informed the whole way through. If there’s going to be a budget blowout, let them know as soon as you know. Give them – where possible – choices so they can make informed decisions.
On your invoices, itemise the professional expertise of everyone involved – because that’s what they can’t buy at, say, the Chemist Warehouse. Detail the work that your nurses do.
If you’ve ever received the invoice from a private hospital – wow! – pages and pages and pages of what you’re paying for and all the different people involved. It’s only when we see things itemised like this that we truly appreciate what actually happened.
Remember – it might be just another day in the office for you – but it’s not for your client. They have no idea what goes on out the back – unless you tell them. Unless you educate them.
So start doing that! Educate your clients about the education your team has.
And if you need to, help clients know your clinic has a payment plan that’s affordable, for them.
#8 – be welcoming
Back in October last year, Associate Professor at Otago Polytech, Dr Francesca Brown, shared some of her research about what vet clinic clients really want when they visit a clinic.
Episode 100 – Dr Francesca Brown
Episode 101 – Dr Francesca Brown
A powerful way to start building up rapport with your clinic’s clients is to lavish your love on their animals.
You can do this by knowing the name of their pet before you ask them “who do we have here?” – that’s why you have the PMS system that you do – so you can recall patient information in just a few clicks.
If you attended the NZVA Wellness Symposium last year you would have heard Dr Meg Irvine finish her presentation with “people don’t care how much you know until they know how much you care” – so show them how much you care – especially in relation to their fur babies.
#9 – your specialist & referral network
The last couple of weeks I’ve been talking about the unconscious cognitive biases we all have – specifically in relation to interviewing.
I mentioned the Halo Effect Bias – if you haven’t listened then, as always, I recommend you go back and listen.
Today though, the Halo Effect applies to your specialist and referral network. If / when you have professional relationships with second opinion clinics / hospitals, you can bask in their glory via the halo effect.
In a similar way I’ve mentioned about spreading the word through social media and your newsletter before, so you can do that with the specialist and referral networks you’re aligned with.
Why? Because it shows you’re well connected and your clients will appreciate and respect the referral networks you have.
#10 – clear communication
I remember attending an NZVA networking event a few years back where Dr Seaton Butler was talking about insurance claims – from the angle of when an insurance policy needed to be used. He said then, and Dr Francesca Brown – whom I referred to earlier – also stresses that clear communication is essential.
When it comes to fee increases, let your clients know why you’re increasing them (don’t assume they know it’s because of inflation). Maybe even let them know when you increased your fees last (if that’s possible) … I mean, it may be that you don’t have to increase everything all at once … that you can stagger the increases in different ways.
If you’ve been absorbing the cost increases until now, let them know that as well.
I’m sure most clients would prefer small incremental increases rather than huge shock jumps.