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VHMA Tackles Effective Pricing at Forward-looking Critical Issues Summit

Tuesday, August 14, 2018   (1 Comments)
Posted by: Christine Shupe
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Veterinary industry leaders brainstorm approaches to bring about strategic pricing in the industry

 

The Veterinary Hospital Managers Association (VHMA), the leading association for veterinary managers, hosted a pioneering conference to examine a significant industry issue---pricing. The VHMA 2018 Critical Issues Summit was held August 8 and 9, 2018, in Chicago. More than 40 of the industry’s most influential and experienced professionals participated in the workshop led by Utpal Dholakia, Ph.D., Rice University professor of marketing and noted author and authority on motivational psychology, consumer behavior and marketing. Over two days, participants explored research presented by Professor Dholakia and collaborated with colleagues to create value-based pricing strategies that will be presented in a soon-to-be released Summit white paper.

 

Pricing in the Veterinary Industry

 

Pricing decisions are among the most important business decisions veterinary owners and managers make. However, according to Karen Felsted, CPA, MS, DVM, CVPM, CVA, current veterinary pricing practices are haphazard, reactive and not strategic, which often results in practices simply raising prices across the board instead of using methods that will better increase profits and keep clients and team members comfortable with the pricing structure and value provided. In contrast to traditional pricing practices, Professor Dholakia introduced Value-Based Pricing at the Summit and challenged participants to apply this structured and comprehensive method within their working groups.

 

Value-Based Pricing

 

Value-Based Pricing is a departure from more traditional pricing approaches that simply focus on costs. This thoughtful and comprehensive approach considers the role of fixed, variable and incremental costs, the value the practice provides to the client from the client’s point of view, as well as the use of discounts, promotions, bundles, complementary products and more, with the goal of developing pricing structures that enhance practice revenue while providing affordable healthcare options for clients.

 

The seeds of the VHMA Critical Issues Summit were planted during the 2015 VHMA Board’s Strategic Planning session. VHMA President Jim Nash explained, “The Board believed it was important for the association to begin transitioning to a more strategic role in addressing issues that are challenging our members and the industry. Our focus is to develop resources and tools for our members to more effectively run their practices. That seed grew into the Value-Based Pricing Summit.

 

The value of the Summit was echoed by many participants. Bash Halow, BA, CVPM, LVT, said, “The workshop is one of the most valuable VHMA events I’ve attended. VHMA has taken a step forward to be proactive about problems in the industry. I look forward to what’s next.”

 

“By working together and challenging each other during the Summit group discussions, we have made significant progress toward developing solutions to pricing challenges. Summit participants were enthusiastic and readily shared their insights and expertise, which was valuable in crafting viable strategies. VHMA is grateful to CareCredit and Nationwide, companies that sponsored this endeavor,” said Nash.

 

Dr. Dholakia will present the Summit’s findings at the upcoming VHMA 2018 Annual Meeting and Conference, October 18-20, 2018 in Baltimore, MD.

Comments...

Naga Narala says...
Posted Wednesday, September 19, 2018
Happy to be signed in again.

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