Here's something we would like you to tell your clients.
Tell them, "quality of care, quality of service, or price; you only get to choose two". We bet
you will be very surprised with their answers. You know, a true veterinary professional would
have no doubt what his/her clients prefer so if this comes to you as a surprise, maybe you are
still a veterinary hobbyist.
Interestingly though, anyone can become a true professional. It basically takes three things
to become one:
Working on
volume is much more expensive than working on price as providing service costs you money. This
undercuts your profits and forces you to push even more services in a given time. This makes
providing high quality service even harder, thus having to lower prices even further to "stay
competitive". This is a negative vicious circle, do you agree?
Your clients actually tell you when your prices are low; they ask you how much your service
is before they accept its value. In other words, they are trained to focus on cost as the
primary
determinant for their selection of your services. On the other hand, if you focus on profit as
a main indicator of success, you can lose volume and still have far more money in your bank
account, have fewer and more efficient staff and associates who are dedicating their time to
improving their skills and attracting and keeping high paying clients.
With this strategy you will also have more time to relax and recharge and you can be more
productive per unit of time. Having the time to create rapport with your clients and build
value in their mind, are crucial strategies to being able to charge appropriately for your
services. This however takes time to master and deliver. If you have severe time constraints,
you won't be able to do this with mastery.
Today we are going to touch on the main barrier to success in practice and how to overcome it.
The secret is by becoming a true veterinary professional.
It is a known fact that veterinary practices are... well, veterinary practices and this is the
biggest problem we have in our profession. The right attitude instead is that we are businesses
that provide veterinary care. See the difference? So let's go to work on turning you into a
shining veterinary professional.
Here is another important attribute of true veterinary professionals; they put being successful
at the top of their agenda. Getting through the day unscathed is not equivalent to being
successful, unless your goal is to get through the day unscathed.
Dedicating a large percentage of your day to putting out fires or worrying about issues, does
not get you any closer to goals, unless your goal is to do everything yourself. The best way to
be professionally successful is to focus on the functions in your practice that give you the
best results. Financial results are only one part of that.
Here is an exercise we suggest you do to
start becoming a true professional. For the next week go to work with a stopwatch and measure
how much time you are really dedicating to highly productive activities in your practice. You
will be amazed when you realize how much of your time is wasted on low yielding activities every
day.
So what did you come up with? How many hours do you truly produce and how many hours do you
spend staying put?
You know, life pays you by what you produce, not by your intentions and wishes. A tiger
doesn't get to eat if it doesn't catch its food. Sitting on its rear thinking about catching
something is only going to make sure it stays hungry. If you are a veterinary associate, your
salary no doubt, is decided based on your production. If you waste precious time thinking about
being productive, you will probably be left behind when the time comes for a raise. No point
in complaining about how hard you're working and how little you are making. Instead, if you
focus more (much more) of your day on highly productive tasks, you will be able to negotiate
more from your employer and from life.
The same goes for you, the practice owner. You may call the shots in your practice but if
you don't produce, your clients are not likely to give you what you want. If you handle your
clients like a hobbyist, your clients are calling the shots in your practice and they dictate
your lifestyle. Do you want your clients to dictate your lifestyle or do you want to do it
yourself?
Retail expert, Jurek Leon has vast experience in the area of customer service. Jurek adheres to
the slogan that 'loose lips sink ships' and recently discussed the dangers of what he calls
'tearoom talk'.
According to Jurek, tearoom talk occurs when a member of the team has had a bad experience with
a customer whether it is over the phone or face to face. As we all have a need to release stress,
it is natural that the team member concerned would want to discuss the incident. The person
concerned gets into the tearoom and typically will start a conversation with something like:
'You wouldn't believe the customer I just had.'
The team member will then proceed to discuss how rude and arrogant the customer was, complaining
about how hard done by they feel etc.
Usually they don't get any further before one of the other people in the tearoom cuts in and
says something like "Oh, that's nothing, you should have heard the woman I had on the phone
yesterday…"
This person will go through an account of what had taken place the day before, before a third
person in the tearoom interrupts. This person's story will begin with "You guys…that's nothing…"
It then becomes a case of who can come up with the worst customer of the month scenario. This
invariably means that somebody who is sitting there quietly, having a cup of tea and relaxing,
recovering their spirits to get back into the fray, suddenly becomes de-motivated by this
talk. This type of talk effectively undoes all positive customer service sessions that the
team has been involved in and creates an 'us' versus 'them' mentality at work.
The question is how do we then get a negative customer experience out of our system without
creating a negative morale at work?
Jurek says that it's OK to discuss the experience but recommends referring to the customer
by name and ending on a positive note. By ending the story with something like "You know I'm
really pleased. I didn't let that person upset me, I'm really proud of myself" will create
a different atmosphere in the tearoom.
It's all about getting on side with our customers.
Unattended or misbehaving kids cause retailers grief continually. How to handle them and get
parents to control them is something every retailers thinks about constantly.
Here's a nice effort.
Did it work? Would it be appropriate in a veterinary practice? Who knows? You might have
noticed that parents never think that their child is a problem
Pet Insurance Rising In Down Economy
Extracts from an article by Brian Hutchins about pet insurance in the USA - originally published
in Veterinary Practice News
Much as the economic crisis loomed large in the election of Barack Obama as president, it also
has sparked a heightened interest in pet healh insurance from pet owners and veterinarians.
Concerns about the economy, from Wall Street to Main Street, flared in September and October,
and have brought to the forefront the idea of pet health insurance as a way to manage health
costs.
A central issue is whether pet health insurance in general is a cost-effective way to manage
veterinary costs during tough economic times.
Overall industry policy sales are continuing to grow, fueled both by an interest in managing
those risks and a growing number of companies, including new players such as AIG-underwritten
PurinaCare and Trupanion, marketing the concept and their policies.
Although more consumers are now willing to buy insurance policies, the number of insured U.S.
pets is still less than 1 percent of all pets by most accounts.
The precise number of insured pets in the U.S. is not known--several companies do not report
numbers due to proprietary concerns--but a couple of members of the North American Pet Health
Insurance Assn. estimate that 750,000 to 800,000 pets are insured and that the North American
pet insurance market would grow annually between 25 and 35 percent for the next five years, to
a $1.1 billion market by 2012.
Good Renewal Rates
Still, the economy's effects on pet health insurance sales varies by insurance provider, with
the more established players staying relatively stable despite the onslaught of new players
and the newer players reporting the more rapid sales growth that would be expected from a
fledgling business.
Perhaps most promising for the industry is strong and improving renewal rates, which
providers say means that consumers are seeing value in pet health insurance and that
companies are delivering that value.
"We're seeing a slight slowing in new policies sales, but our retention rate has actually
increased," said Curtis Steinhoff, senior director of corporate communications at
Veterinary Pet Insurance in Brea, Calif. "People who have a policy now are saying, 'Now is
the worst time for me to get a $3,000 or $4,000 vet bill,' so they're holding onto their
policies in greater numbers."
Potential new customers, however, may be viewing insurance as a luxury and are choosing not
to add another expense given the uncertain economy, he said.
VPI is still growing and insured about 465,000 pets as of late October, Steinhoff said. He
declined to provide more specific numbers for competitive reasons.
Also factoring into the slowdown of new policy sales is a more competitive marketplace, with at
least 15 providers now in the market.
Similarly, Hartville Group Inc.'s sales were softer in the third quarter than the first half
of the year, but not as soft as the company expected, said Dennis Rushovich, chief executive
officer of the Canton, Ohio-based company. Hartville typically sees its strongest sales in
the beginning of the year.
Even with the sales slowdown, Rushovich said, the company insures more than 80,000 pets, up
from 79,079 pets at the end of the second quarter.
Rushovich said the economy has been in a downturn for almost five quarters by his calculations,
and the company's first-half sales were very strong and above expectations.
Insurance sales typically pick up during down times, he said, because people tend to think more
about what would happen if they lost a job or faced other financial challenges. Pet health
insurance sales should act similarly, he said, depending on whether a pet owner sees the
expenditure as discretionary spending or a necessity.
Also, the down economy's full effect on pet health insurance will be difficult to fully
understand until the current troubles are over, he said.
Fall Downturn
Although its sales are up year over year, Pets Best Insurance of Boise, Idaho, acknowledges
a difference.
"Every month had been record-breaking until September and October," said founder Jack Stephens,
DVM. "People are just unsure. We are seeing some declines."
In short, people were not making new financial commitments but the company's retention rate
went up, he said.
Those declines were month over month for September and October and possibly a temporary
glitch. Dr. Stephens noted that preliminary figures indicated the company had two record sales
days through the first five days of November and was back on a "rapid growth curve."
The company insures more than 30,000 pets, he said.
With his long history in pet health insurance, Stephens, who also founded Veterinary Pet Insurance,
has been through recessions. The pet insurance market leveled off then but came back quickly as
people thought about how important their pets were to them, he said.
Other Options Available
Pets Best has seen an uptick in policy cancellations as consumers look to save money, Stephens
said, but the company saved many accounts by switching them to its lower-premium insurance
programs.
If the customer's complaint is about Pets Best specifically rather than general money concerns,
the company's policy is to refer customers to the North American Pet Health Insurance Assn's
website to find another provider, such as Trupanion of Lynnwood, Wash.
"I've been doing this for eight years and I've never seen a bigger urgency to get pet health
insurance than now," said Darryl Rawlings, chief executive officer of Trupanion, which began
selling policies in the U.S. this year and is still getting state approvals. The company has been
active in Canada for eight years as Vetinsurance.
Although Trupanion's programs are new to the U.S. and offer unique features compared to other
companies' offerings, Rawlings attributes the good reception to the economy.
Most significantly, Rawlings said, MasterCard and Visa are his main competitors and are becoming
less of an option for pet owners as credit lines shrink and consumers max out. Increasing numbers
of consumers no longer have the option to put that unexpected veterinary bill on their credit
card.
Also, with investments off sharply, retired pet owners living on a fixed income based on
401(k)s or home equity are finding their investment base and discretionary income down
significantly, Rawlings said. This leaves those pet owners less able to handle unexpected
veterinary bills and, presumably, more interested in financial products that would help manage
those costs.
Rawlings said that with only 1 percent of pets insured in the U.S., he wasn't worried about pet
owners who might balk at adding a pet health insurance premium due to economic uncertainty
slowing industry growth.
Anecdotally, Rawlings said that veterinarians, recognizing that pet owners are struggling,
are talking more to their clients about pet health insurance in recent months. Veterinarians
also are asking Trupanion about how to use its marketing tools more effectively. Practices
are now more likely to hand insurance brochures to clients rather than merely put the brochures
on a counter, he said.
While Rawlings said he couldn't provide meaningful growth figures for the U.S. since the
company is new to the market, its most recent quarter in Canada was its biggest ever. The
Canadian economy has been relatively immune to the U.S. troubles, he said.
As of late October, Trupanion was approved in 30 states that represented about 80 percent of
U.S. pets. Rawlings expected to earn approval in all states by the second quarter of next year.
Benefits of Marketing
With gasoline prices high and 401(k) plans falling, business is booming at Petplan USA,
administered by Fetch Insurance Services Inc. of Philadelphia, with month-to-month double-digit
growth through October, said founder, president and CEO Chris Ashton. Citing proprietary
concerns, he declined to reveal specific sales figures. Fetch licensed the Petplan brand and
program and began marketing it in the U.S. in July 2006.
"People are not asking if they can afford pet health insurance, but how they can afford not,"
Ashton said.
In response to the economy, Ashton said, the company is doing more marketing, including on
the Internet and to the veterinary profession. He also said the company is conducting, and
getting more requests for, its lunch-and-learn programs for veterinary practices.
He acknowledged that some veterinarians don't support pet health insurance, but he said the
time has never been better for veterinarians to promote it.
"We know people are putting off veterinary visits" in an effort to save money, he said. He also
said that he has data, based on Petplan's 25-year history in the United Kingdom and other
markets, to show that insured pets are taken to the veterinarian more often, their owners become
more bonded to the veterinary practice and the owners spend more money on more services than
non-insured pet owners.
Likewise, VPI recently shifted its marketing to emphasize an economic message. To pet owners,
that message is about how pet insurance can help them manage veterinary bills.
To veterinarians, the message is about how insurance can boost practice revenues. VPI is
encouraging veterinarians to promote veterinary pet health insurance, Steinhoff said, noting the
company has data showing that insured pet owners visited the veterinarian more often, were
inclined to spend more once there and were more likely to follow veterinary recommendations
than non-insured pet owners.
Well-Informed Owners
PetPartners Inc. of Raleigh, N.C., has been "surprised by just how consistent people have
been" in their insurance purchasing amid the economic challenges of recent months, said Linda
Bell, the company's chief marketing officer. The company, whose brands include the American
Kennel Club Pet Healthcare Plan and the Cat Fanciers Assn. Pet Healthcare, has seen a
consistent level of new sales and renewals and an upward trend in claims costs.
Anecdotally, Bell said the company perceived an uptick in interest at its booth at a couple of
recent dog shows.
It also has noticed consistency of use among its various plans, ranging from wellness plans to
accident-only policies, and various deductible options, Bell said. The company's retention rates
remain strong, she said.
Bell said people are now more aware of pet health insurance because of the additional players
in the market and a related increase in overall promotional activity, especially on the Internet,
where online shopping for pet insurance is relatively simple.
People also are more aware of veterinary medical advances available for their pets, and the
higher costs of those procedures, because of television programs, Bell said.
She said the company is seeing strong sales in California and Florida--markets where home price
declines have been the sharpest in the nation and consumers presumably under more pressure.
You can
click here to visit the North American Pet Health Insurance Association website
You can
click here to visit the Veterinary Practice News website
3 Ways to reduce those frustrating practice management
headaches, that you hate!
by Ben Cummings
Ben Cummings is the publisher of a website devoted to the
development of chiropractor practices in the USA
A study showed doctors wasting on average 30% of their work time trying to fix reoccurring
management headaches. Here are 3 tips for eliminating common practice hassles so you can focus
on treating and generating practice income
In my opinion, the ideal practice is one where a Doctor is free to focus on creating practice
revenue. When he shows up to work he can focus mainly on delivering care and case presentations.
The two most important income producing areas in practice!
The problem is so much of a doctors time is consumed putting out management fires. Here are
three tips for reducing these common management frustrations:
1. Systems are the answer
Doctors get drawn into battles they shouldn't be drawn into. Doctors spend about one-third of
their work time dealing with the same problems over and over. The solution is to take a
systems-thinking approach. Systematize problem areas, and let the systems do the work.
I've observed that 20% of the problem areas cause 80% of the trouble. DDoctors waste enormous
time on things like:
- Having to make sure a staff person is doing what they're supposed to be doing
- Spending too much time on the telephone, and not enough time on practice development
- Chasing insurance payment
- Making sure calls are being returned, instead of having reliable staff
- Trying to do everything yourself
Wasting time on these things, means less time spent on practice development. You get caught up
just putting out fires. Nothing significant seems to get accomplished. What are the 20%
problems that cause you 80% of the trouble? Rather than base your practice around
unpredictable human behavior, center it around systems. Let the systems you create solve the
problems before they occur again.
When the doctor reduces the majority of time wasting hassles, we find income improves. The
practice grows! The doctor has more time for practice development. When things are systematized
practice capacity improves also. These are things that grow practice income.
2. Get rid of the belief "no one can do it better than me!"
We get that a lot from doctors! "No one can do it better than me" means why hire someone to
help grow a practice if no one can do it as well as the doctor can?
When a doctor believes "no one can do it better than me" they don't hire needed staff. Even
when it can make them more money. When a doctor tries to do everything themselves they hit an
income ceiling. They can't make any more income because they're unable to see patients when
the demand to get into the practice is greatest. This is frequently known as a capacity problem.
Today's patients will not except slow apathetic health care. They'll just go elsewhere. If you
can't get patients in when they want to be seen they will often chose to leave. The age of
hyper-availability is already upon us. Those doctors who refuse to staff up or expand their
capacity to accept patients when they most desire to come in will find future growth a challenge.
If one has the belief that hiring anyone else into the practice will lead to incompetence
in that area, than the doctor will not hire even if it's desperately needed. New staff can be
used to expand the numbers of patients that can be processed. Since doctors earn money based
on the number of treatments and visits delivered, expanding patient processing capacity can
frequently expand income immediately. Doctors with the belief "no one can do it better than
me" frequently hit the income ceiling.
3. Doctors are reluctant to delegate mundane practice tasks to others
Doctors hold onto tasks! There are dozens of mundane tasks that consume a doctors time, yet
generate no value. Doctors find it hard to give these up.
Doing mundane tasks can waste dozens of valuable work hours. As many of these should be
delegated as possible, to free up time for practice development. Of course, I sometimes think
doctors hold onto these mundane tasks as an excuse for inaction with regards to practice
development. After all it's easier to waste time doing your own insurance coding than it is
thinking about a patient flow strategy that could drive in 20 new patients a month.
When a doctor is reluctant to give things up that waste their time and produce little value, it
can impact the practice negatively in a number of ways such as:
- Stress of running the practice increase as the practice grows
- Growth slows
- Hard to focus on practice improvement
- No time for practice development
- Feel they're so busy that they don't have the time to even hire someone else
Shirley McClain said, "The problem with the rat race is, even if you win you're still a rat!"
The goal of starting your practice was not so you could work like a dog for 30 years and retire
when you're too old to enjoy it.
If you think about these three concepts and correct the most common areas of the practice
that are wasting enormous amounts of your time, you will find income improves and being in
practice becomes more enjoyable!
You can
click here to visit the Ben Cummings website.
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