{"id":9123,"date":"2020-10-28T11:22:59","date_gmt":"2020-10-28T18:22:59","guid":{"rendered":"https:\/\/todaysveterinarybusiness.com\/?p=9123"},"modified":"2022-06-15T17:46:38","modified_gmt":"2022-06-15T17:46:38","slug":"veterinary-clinic-retail-growth","status":"publish","type":"post","link":"https:\/\/navc.sitepreview.app\/todaysveterinarybusiness.com\/veterinary-clinic-retail-growth\/","title":{"rendered":"How to Grow Your Veterinary Clinic’s Retail Business"},"content":{"rendered":"

When Sara Karasinski, CVPM, became practice manager at Arrow Veterinary Clinic (<\/span>arrowvetclinic.com<\/span><\/a>) in Lowell, Michigan, she inherited a pile of unsold product inventory collecting dust. She dived in and overhauled the veterinary clinic\u2019s retail sales, and now the team runs a lean, mean, profitable retail business<\/a>, accounting for about 10% of the practice\u2019s overall sales. Here\u2019s how she did it. <\/span><\/p>\n

Choose the Right Products<\/h2>\n

The first thing Karasinski did was figure out which products would move quickly and dump the rest. \u201cHaving things sit on the shelf nine months a year \u2014 or a couple of years \u2014 isn\u2019t profitable,\u201d she says. \u201cYou\u2019re just paying someone to wipe the dust off occasionally.\u201d <\/span><\/p>\n

She focused on items that were supported by the practice\u2019s medical team, would turn over every month or two and were sought after by clients. Nylabone chews (<\/span>nylabone.com<\/span><\/a>) sold well. <\/span><\/p>\n

\u201cSure, you can find them at a local pet store or grocery store, but if they\u2019re already here and clients can purchase them and support the small business, they often will,\u201d Karasinski says. \u201cWe purchase a handful and turn them over in 30 or 60 days.\u201d<\/span><\/p>\n

Other best-sellers include Kong toys (<\/span>kongcompany.com<\/span><\/a>), LupinePet leashes and collars (<\/span>lupinepet.com<\/span><\/a>), pet odor candles (some clients buy these to match the season and even purchase extras as holiday gifts) and Millers Forge nail trimmers (<\/span>millersforge.com<\/span><\/a>). That last item was a surprise to Karasinski.<\/span><\/p>\n

\u201cPeople would come in and say, \u2018What are you using to trim my dog\u2019s nails with? I\u2019m trying to do it at home but these ones I got at the store are terrible!\u2019\u201d Karasinski says. \u201cSo we started carrying the ones we use in the clinic, and those turn very quickly.\u201d <\/span><\/p>\n

Nutraceuticals and home care products are another important segment of the practice\u2019s retail inventory, especially joint supplements. If an over-the-counter product is recommended during the appointment, the client has the option to take it home that day. Limiting options to what the hospital recommends keeps inventory manageable and also builds trust. \u201cEither we\u2019ve used it, or we have recommended it for other pets that have done really well with it,\u201d Karasinski says. \u201cClients trust that what we carry is what we recommend.\u201d<\/span><\/p>\n

Train the Team<\/h2>\n

Front desk team members are the first to greet clients when they come in and the last to talk with them before they leave the building. That means they\u2019re the most likely to engage in discussions about retail, Karasinski says.<\/p>\n

For example, as a client is checking out, the front desk team member might say something like, \u201cOh, it looks like the doctor recommended this product \u2014 let me show you where it is,\u201d she says. Or, \u201cI already pulled this product and it\u2019s sitting here for you.\u201d <\/span><\/p>\n

When new employees start, Karasinski asks them to spend some time in the retail space and \u201cget their eyeballs on\u201d the products. Then it\u2019s quiz time. \u201cI\u2019ll pull up something in the computer and ask them to go find it and tell me about it,\u201d she says. \u201cThen vice versa \u2014 I\u2019ll grab something off the shelf and bring it to them and say, \u2018Here, can you find this?\u2019 and have them pull it up in the computer. It\u2019s very interactive and seems to work!\u201d<\/span><\/p>\n

Make It Profitable<\/h2>\n

Arrow Veterinary Clinic uses the Vet2Pet app (<\/span>vet2pet.com<\/span><\/a>), which features a built-in loyalty program that Karasinski says made a major impact on retail sales. Clients receive a \u201cstamp\u201d for every $100 they spend, and once they have enough stamps they can receive a reward such as an account credit, nail trim or other freebie.<\/span><\/p>\n

\u201cIf they have $90 worth of services and need $10 more to get to that $100 mark, our staff can easily say, \u2018Hey, look at our selection of products in that price range,\u2019\u201d Karasinski says. \u201cThis gives clients an opportunity to buy something they might have gotten anyway, and they\u2019re reaping a reward for getting it. It makes it very easy for us to uptick that appointment, and it doesn\u2019t make my staff feel like they\u2019re selling something \u2014 they\u2019re doing them a favor by helping them reach the goal. If they say no, it\u2019s not a big deal!\u201d<\/span><\/p>\n

You Can Do It Too<\/h2>\n

Karasinski would encourage all veterinary clinics to take a closer look at retail \u2014 but keep it small at first. \u201cAny retail is an added value to a service you\u2019re already providing,\u201d she says. \u201cIf you hone in on what\u2019s important to your clients, doctors and staff and make those items available, it doesn\u2019t have to be a lot of stuff. It doesn\u2019t have to look like the inside of PetSmart.\u201d <\/span><\/p>\n

In addition to boosting revenue directly, retail gets clients into the clinic more often. \u201cIt\u2019s an opportunity for them to come back more than once a year for that annual visit,\u201d Karasinski says. \u201cThat\u2019s more foot traffic in your building, it\u2019s more visits per year, and you have a better-established relationship with that person.\u201d<\/span><\/p>\n

Of course, pet merchandise and over-the-counter healthcare items are just part of a practice\u2019s product revenue picture \u2014 the other is in-clinic pharmacy sales. Brian Conrad, CVPM, practice manager for VCA Meadow Hills Animal Hospital (<\/span>vcahospitals.com\/meadow-hills<\/span><\/a>) in Kennewick, Washington, wants more clinics to fight for this income. It\u2019s not even about profitability, he says. Carrying the products you recommend is in the best interest of clients and pets. <\/span><\/p>\n

If veterinary professionals are walking the exhibit halls at conferences, talking to drug manufacturers and figuring out which options are best, why do they concede those sales to an online pharmacy or Walmart? Or, worse, take the chance that their client will purchase something other than what the team recommends?<\/span><\/p>\n

\u201cWe\u2019re already doing all the legwork, and then we don\u2019t have the products we\u2019re recommending? It drives me crazy!\u201d Conrad says. \u201cClients are going to get something online that\u2019s $6 for six doses, and it\u2019s poison!\u201d<\/span><\/p>\n

Sure, Conrad has heard the \u201cWe\u2019re not a warehouse\u201d argument. No hospital has the space to stock every product a doctor might mention in a year\u2019s worth of appointments. But if you run a few reports in your software and figure out which items have the highest turnover, you can figure out which ones to carry. \u201cWith proper inventory control, you can stock pharmacy products whether you\u2019re a 1,200-square-foot hospital or a 12,000-square-foot hospital,\u201d Conrad says.<\/span><\/p>\n

Gather the Doctors<\/h2>\n

The first step, Conrad says, is to get the doctors in a hospital to agree on one or two product lines to recommend and carry for a particular condition. \u201cWe have a philosophy of \u2018One focus, one line, one message,\u2019\u201d Conrad says. Once doctors agree on which those will be, team members are trained on those products.<\/span><\/p>\n

Get Team Members on the Same Page<\/h2>\n

Conrad doesn\u2019t allow manufacturer-sponsored lunch-and-learns unless the practice\u2019s leadership has already agreed to carry a product. If a company offers to pitch a new product to the whole team, he asks the rep to meet with the medical leadership first. Once they\u2019re on board, training goes to all employees. Likewise, Conrad won\u2019t accept free product unless it\u2019s already part of the practice\u2019s protocols. \u201cIt happens all the time, where the client asks a team member, \u2018What do you use for your pet?\u2019\u201d Conrad says. \u201cIf the doctor recommends product A or B, but the team member uses product C because they got it for free, that does not send a good message.\u201d<\/span><\/p>\n

Conrad likes to take a proactive approach by asking pharmaceutical sales reps to meet his team\u2019s specific needs. Instead of hosting a meeting for 40 people, he might ask a rep to sit down with his new receptionist to train her on a product line, or hold weekly meetings to educate four or five team members at a time after a new product launch. \u201cPharmaceutical sales reps are super open to doing anything we ask,\u201d he says. \u201cThey\u2019re an underutilized resource, but they need help being creative.\u201d<\/span><\/p>\n

Make the Recommendation and Have the Product Available<\/h2>\n

Once the team is trained, it\u2019s time to educate clientele. With exam room conversation time limited, Conrad says he tries to get the message distilled down to a few bullet points or a 20- to 30-second talking point. \u201cAnd if the client declines, that\u2019s fine,\u201d he says.<\/span><\/p>\n

The final step is to have the product available so the client can take it home that day, Conrad says. In fact, this is so important to Conrad that he makes a guarantee to clients: \u201cIf we\u2019re ever out of a product, we\u2019ll deliver it to your house for free.\u201d The policy encourages good inventory control, plus most clients say the service is unnecessary, although they\u2019re impressed by the offer. <\/span><\/p>\n

The bottom line, Conrad says, is that most veterinary hospitals invest too much time in training and messaging for someone else to benefit from the product sale. Granted, the days of 150% or 200% markups are gone. You may only be able to increase your cost 35% to be in range of the competition. But for Conrad, as long as there\u2019s positive cash flow on product sales, he\u2019s happy, because patients are getting what they need. Plus, at year-end, that 10% to 15% of extra profitability from pharmacy income could pay for discretionary items like continuing education for staff or upgrading an ultrasound machine.<\/span><\/p>\n

\u201cWe need to stop being so nonchalant about losing our pharmacy sales,\u201d Conrad says. \u201cAt the end of the day, I\u2019m doing what\u2019s best for the pet and the client. That\u2019s why we got into this business.\u201d<\/span><\/p>\n

\n

The Fur-Baby Generation<\/span><\/h2>\n

Millennials dote on their beloved pets with the same attention previous generations lavished on their kids<\/h3>\n

Move over, baby boomers and Gen X-ers. A recent report says that millennials represent the largest portion of pet owners in the U.S.,1<\/sup>\u00a0 <\/span>with three-quarters of them owning either a cat or dog.2<\/sup><\/p>\n

The American Pet Products Association estimates that by 2021, $75.38 billion will be spent on pets in the U.S. every year.3<\/sup> Millennial dog owners spend $1,285 per year on their pet, or as a group, $67 billion annually. Cat owners in this generation spend $915 per year individually and $33.5 billion a year as a group.4<\/sup><\/p>\n

\u201cClients will always count on you for pet care advice and as a voice of reason,\u201d writes Eric D. Garcia, an IT and digital consultant, in Today\u2019s Veterinary Business. \u201cClients need you to be the resource for information on all things related to pet care.\u201d<\/p>\n

To attract the buying power of millennials, take a look at their buying behaviors.<\/p>\n

Pet services, including grooming, boarding and training, has been the fastest-growing product segment under the industry umbrella in the past five years.1<\/sup><\/p>\n

The pet supplies segment is also growing. Halloween costumes for Fido and Fluffy, fancy collars and expensive toys? You bet. In 2019, sales in this category were approximately $4.54 billion.1<\/sup><\/p>\n

You won\u2019t win on price alone, however. The key to being successful with younger clients is to build trust and educate them on products and services that make sense for their pets \u2014 the value you add is where you and your team win this market segment.<\/p>\n","protected":false},"excerpt":{"rendered":"

The keys to growing your veterinary clinic’s retail business \u2014 all while offering valuable, trusted products for your clients.<\/p>\n","protected":false},"author":170,"featured_media":9124,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"iawp_total_views":0,"footnotes":""},"categories":[326],"tags":[],"class_list":["post-9123","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-clinic-innovation-guide-2020","column-features","clinical_topics-merchandising"],"acf":{"hide_sidebar":false,"hide_sidebar_ad":false,"hide_all_ads":false},"yoast_head":"\nHow to Grow Your Veterinary Clinic's Retail Business<\/title>\n<meta name=\"description\" content=\"The keys to growing your veterinary clinic's retail business \u2014 all while offering valuable, trusted products for your clients.\" \/>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, 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