Credit: ThinkstockEditor’s note: The following article was written from information presented at the 2015 AAEP Convention. This article is in addition to the feature in the Spring 2016 EquiManagement magazine and other articles from that convention brought to you by Zoetis.
Overhead-based pricing was discussed by Ben Buchanan, DVM, DACVIM, DACVECC, as a way to set fees based on the actual costs to a practice of being in business.
Regardless of the regional equine market, no practice can survive if the prices charged to the client are less than the cost to perform the service. Without profit, purchasing new equipment and reinvesting in the practice are impossible. Moving to a cost-based pricing method will focus the practice on services rather than inventory sales and help drive a healthy profit.
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