Finance within the veterinary practice Flashcards
What is included in a consultation fee?
• Fixed costs – costs incurred regardless of number of consults
- Linked to expenses in P+L e.g. wages etc.
• Variable costs - costs incurred specifically by a consultation
- Linked to cost of sales e.g. medicines, lab fees etc.
Where does a practice spend its money?
- Premises
- IT and telephone
- Office supplies, maintenance, repair
- Employment
- Medicines and lab costs
- Vehicles
- Professional services
- Marketing
- Finance costs
Name the two simple ways to improve profit?
Increase income
Decrease costs
How can income be increased?
- Increase client numbers
- Increase numbers of visits per client
- Increase treatment options available
- Increase client spend per visit
- Increased ethical selling
- Debt control
How can costs be decreased?
- Increasing staff awareness of costs
- Decreasing salary outgoings - Hiring freeze, Staffing efficiencies
- Stock
- Suppliers
What are the impacts/considerations when trying to increasing profit?
- Service - Reducing staff numbers could effect service
- Staff - Morale, Selling culture
- Costs - Still need to remain competitive
- Reputation - Client opinion
When setting goals what does SMART stand for?
Smart Measurable Action orientated Realistic Timely
What are some owner expectations when charging and selling?
- Skills and Knowledge
- Appropriate equipment
- Good service
- Expert advice
- Solution to a problem
- Reasons for visit may differ
- Costs willing to pay may differ
How can vets provide a positive experience when charging and selling
- Clear communication
- Time
- Consideration of options and implications
- Clarity
- Shared understanding and decision making
Define key performance indicators?
Measurable goals set by employers in order to track progress
Key performance indicators should?
- Match personal progress
2. Align with and reflect business goals
Key performance indicators identify?
- Areas of success
- Areas for improvement
- How your employer can support you
