Market Watch: A new model: Look for opportunity
Previously, I have raised the specter of alternative providers of veterinary services and products. The Veterinary Care Usage Study released in early 2011 pointed out that "fragmentation of the industry" is one of the significant factors contributing to declining pet visits to veterinarians. We used to talk about the fact that there were too many veterinary facilities—too many X-ray machines, too many surgical suites, too many clinics that were not being used to their potential. Certainly that must be considered. But, increasingly, the fragmentation has been in service and provider options.
Preventive care such as vaccination was once available only at a veterinary practice. Mobile vaccination clinics are nothing new to much of the country, but they are increasing in number, visibility and, yes, convenience through a growing presence in strip malls and at chain stores looking to provide another reason for people to visit them. Many pet owners associate vaccination as the primary reason they visit a veterinarian. Once that need is met, they don't see a lot of reason to go to the veterinarian. We already know that office visits are declining in number. What is happening to your vaccine numbers?
Spaying and neutering
Animal shelters provide early spay and neuter services and, in fact, insist that adopted pets be sterilized before adoption. What has happened to the number of spay and neuter procedures performed in your facility in the last five years?
Flea and tick control
Flea and tick control product sales have declined significantly in most veterinary hospitals. Online pharmacies have impacted veterinary drug sales in hospitals. In addition, today, over-the-counter flea and tick products are available at a number of local sources from pet stores to supermarkets and hardware and home improvement stores. Supermarket pharmacies and chain pharmacies are filling veterinary prescriptions at minimal fees as a convenience to their shoppers. Some major chains are experimenting successfully with inventorying full veterinary product lines and encouraging their customers to fill their pet prescriptions there while they shop. How are we ever going to compete against these market giants?