The current veterinary market appears to be showing a downturn after a prolonged period of static growth in an increasingly competitive environment.  Practices appear not to be growing - however the productivity per vet is growing.  Many practices are starting to feel pressure on turnover and profits.  Annual Turnover Growth of between 4% and 5% is being maintained by high Average Transaction Values primarily from increased prices.  The other driver for increased growth - increasing visit frequency - has now declined during 2008 and the start of 2009.  This is being exacerbated by static or declining client and patient numbers per vet overall, increased competition between neighbouring practices and uncertainty about the current legislation and economy.  The main threat to practice income is from falling drug and leveraged sales.

Practices need to identify where they can most effectively improve practice performance.  In its most simplistic form there are five ways to increase business

1. Increase the number of clients you have (difficult in this environment!).
2. Generate more income (profit) from your existing clients - concentrate on high quality clinical services - price profitably, charge correctly, do the work available.
3. Determine then professionally, ethically and profitably exploit the Lifetime Value of your clients (Client retention - hang onto your clients for longer using PHC initiatives)
4. Increase the efficiency of your business processes, measure and cut expenses, and improve profitability
5. Be Competitive - Create a clear, compelling and irresistible reason for your clients and potential clients to do business with you, and not your competitors.

In an increasingly consumer driven market combined with an uncertain economy it is no longer sufficient to just be a 'good clinical practice'. FDI practices must learn how to capture the largest proportion of the available pet market in their area if they are to survive.  There is no clear strategy of response but those practices that are being successful, and will continue to be successful in the future, are investing in:

• Practice Image and promotion - visibility in an increasingly crowded market
• Client focused relationship marketing - know who your clients are and create ways of communicating effectively and often.
• Preventative Health Care packages to capture and retain the 'healthy' pet; providing a lifetime package of quality, value for money and convenience.
• Quality Clinical Medicine and Surgery - investment in the best clinical skills, equipment and in procedures to provide the income and job satisfaction at a professional level.
• Staff training in interpersonal skills, client care and communication - for all the staff - investing as much in receptionists and nurses as the vets.

Developing your practice will involve the process of setting up, promoting and implementing a Strategic Marketing Plan in such a way that will attract clients to the practice, improve turnover and grow and sustain a profitable veterinary business.  However, remember that good marketing will only bring in more and better customers - good veterinary medicine and excellent customer care will convert them to clients and keep them coming back.

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