Practice owners often tell us they don’t have enough hours in the day to manage staff, receive inventory, set standard operating procedures, and put out fires – all while trying to provide the best medical care for patients. In this situation, it’s easy to see how important aspects of a business can fall through the cracks.
During initial practice set up, owners often spend a lot of time configuring fee schedules for profitability. However, most practices fail to maintain or update these regularly.
Most owners fail to realise that over 60% of their retail products are set to fixed pricing, which means selling prices are not updated when inventory costs change.
This results in low, or even negative, profit margins (Practices could even sell products for less than they paid for them!).
An average practice spends $125,000 in products per full-time vet per year.
With the average practice employing 2 full-time doctors, this adds up to $250,000 in consumables per year. If 60% of products are set to fixed pricing, and the practice has a typical 14% inventory cost increase during the year, this results in a net loss of almost $21,000 in the first year.
What could you do with an extra $21,000 a year?
It’s common to walk into a busy practice and see phones ringing, patients being checked in, clients picking up prescriptions, full exam rooms, and inventory being delivered. While this is all happening, the practice owner and practice manager are having a discussion in the office about how busy they are but are still losing money. The end result is that their practice loses value and they have to let a trusted employee go.
What if your costs and selling prices could automatically update when you receive your inventory? By automating their fee schedule, many practices have saved thousands of dollars annually without losing staff time. This has allowed them to keep consistent margins while using employee time more efficiently to focus on practice growth and patient care. How would a similar opportunity benefit your practice?
By partnering with us, our practice management software can simplify your inventory management process by automatically increasing the selling prices to your customers as your inventory costs increase – boosting your profits.