By:  Robert Zeide

The flea and tick revenue stream has potentially become more of a challenge with generic fipronil products available at Walmart and other stores at discounted prices. The fragmentation of veterinary services along with reduction in veterinary visits, will impact profitability. So how do you increase profits in this environment without raising prices or eliminating staff?

The answer is finding HIDDEN profits in your business. Many practices have inefficient operating strategies because they are based on some simplistic and outdated strategic assumptions: “Cutting costs and discounting prices will win market share.” “Keeping low inventory will free up cash.” Or “Carrying multiple products in many categories will satisfy all customer demands.” WRONG!

Hidden profits surface after you begin to operate efficiently, to eliminate unprofitable activities. The purchasing, receiving and A/P cycle should be evaluated. Review how many orders you place and receive. Quantify the cost of these activities and measure them monthly. This will help you see your true procurement cost. I guarantee you will be very surprised to learn the true cost of these expenses. Eliminating a percentage of these costs will not only increase profits, but your staff will have additional time to develop and manage projects that have been delayed. Develop an attractive website, organize social media contacts, and most importantly communicate your value to your clients. These activities will reap additional profits that are hidden in your practice.

Contact your PCI sales professional for assistance. We have the data available to benchmark your performance against your colleagues. We can organize your purchases by reviewing your history by product, to arrive at the most economical purchasing strategies. PCI will find these profits which can amount to thousands of dollars.

Just give us a call! We are here for you!