As a private veterinary practice owner, you’re not just a DVM—you’re a business leader navigating a tightrope. Set fees too low, and your practice runs on fumes. Price too high, and clients label you “that overpriced clinic.” At Applause – The Standing Ovation Practice, we know you want a thriving practice where clients trust your value, your team is well-compensated, and you’re not dodging fee disputes at the front desk. The key? A commonsense fee-setting strategy tailored for you, the private DVM owner, that hits the “Goldilocks zone”—just right for your community and your bottom line.
The Fee-Setting Challenge in Today’s Veterinary World
Running a private practice in 2025 is no cakewalk. Veterinary incomes are climbing, but office visits are dipping. Clients are skipping wellness exams or dental cleanings, Googling pet advice, or buying meds from online pharmacies. Sound familiar? Meanwhile, rising costs for supplies, staff, and utilities keep you up at night. Copying the clinic down the road? They’re likely guessing, too. To earn that standing ovation, you need a fee structure that’s fair, sustainable, and client-friendly—without compromising your practice’s future.
The Real Problem: Perception and Understanding
Clients don’t balk at fees because they’re “too high”—they hesitate when they don’t understand the value. Consider this: a client brings in their Pekingese after a car accident, with an eye popped out of its socket. Your team presents a patient care plan (PCP) for chest X-rays, anesthesia, and surgery. The client says, “I can’t afford it; let’s euthanize.” Heartbreaking, right? But a skilled team member digs deeper, asking, “Do you have a credit card for emergencies?” The client replies, “Yes, but it’s only for emergencies.” Your team gently responds, “This is an emergency.” The client agrees, the surgery succeeds, and two weeks later, they return with flowers and a glowing review.
The lesson? It’s not about the price—it’s about bridging the gap between “that’s a lot” and “I can make this work.” Your job as the practice owner is to create systems that make this happen.
Why Old-School Pricing Fails
Historically, fee-setting was a mess. Some practices pegged exam fees to random markers like postage stamps, then jacked up other charges until clients complained. Others judged clients by their shoes—work boots meant “broke,” loafers meant “loaded.” Spoiler: that’s nonsense. I’ve seen quarry owners in muddy boots happily pay thousands, while “shiny shoe” real estate moguls haggled over a $12 nail trim. Even AAHA’s regional fee schedules missed the mark—too generic for your unique community. Guessing or mimicking competitors isn’t a strategy; it’s a recipe for stress and lost profits.
The Pitfalls of Poor Pricing
Get fees wrong, and the fallout stings:
- Overcharging: Clients get “sticker shock,” skip visits, or badmouth your practice online.
- Undercharging: You can’t pay suppliers, reward staff, or keep the lights on.
- Discounting: If your fees lack a clear system, you’ll slash prices at the first complaint, eroding profits.
- Conflict of Interest: As the diagnosing DVM, presenting PCP estimates puts you in a bind. If a client balks, do you cut procedures or give services away? That’s a lose-lose.
The Standing Ovation Solution: A Smart Fee-Setting System
To build a practice clients rave about, you need fees rooted in data, presented with clarity, and backed by a team that communicates value. Here’s how:
1. Tie Fees to Median Disposable Income (MDI)
Forget guesswork. Base your fees on your community’s Median Disposable Income (MDI)—the after-tax income families have for essentials like pet care. MDI varies widely: rural areas might average $30,000/year, while affluent suburbs can hit $200,000. Here’s the plan:
- Calculate Your Actual Average Client Transaction (ACT): Using your Practice Information System (PIMS), divide total revenue by the number of transactions over the last 6 months.
- Set Benchmarks:
- Ideal Exam Fee = 0.001 × MDI
- Ideal ACT = 0.003 × MDI
- Adjust Fees: If your ACT or exam fee is, say, 20% below the ideal, raise fees across the board by 20%.
- Stay Current: Every quarter (March, June, October, December), increase fees 2-3% to cover rising costs and fund staff raises.
This isn’t perfect, but it’s practical—like tuning a guitar by ear, it’s “close enough for rock ‘n’ roll.”
2. Empower a Client Care Coordinator
As the DVM, your focus is medicine, not haggling. Create PCPs as if the pet were yours, money no object. Then hand the estimate to a trained Client Care Coordinator. This team member:
- Presents the PCP clearly and confidently.
- Answers questions and addresses objections (e.g., “Let’s explore payment options like CareCredit or pet insurance”).
- Keeps the pet’s care first while respecting the client’s budget.
- Eliminate Jargon: Use plain language on invoices (e.g., “Dental Cleaning and Scaling” instead of “Periodontal Prophylaxis”).
- Clear the Fog: Ensure clients leave the exam room understanding the PCP. They shouldn’t need to quiz your front desk.
- Slightly High Estimates: Present a PCP slightly above what you expect to charge. When the final bill comes in lower, clients feel relieved and valued.
- Handle Objections Privately: Train your Client Care Coordinator to address concerns with empathy, focusing on the pet’s health.
- Calculate Your ACT: Use your PIMS to find your Actual Average Client Transaction over the last 6 months.
- Benchmark Fees: Compare your Exam Fee and ACT to MDI-based ideals (Exam Fee = 0.001 × MDI; ACT = 0.003 × MDI). Adjust if you’re off by more than 20%.
- Schedule Quarterly Increases: Plan 2-3% fee bumps in March, June, October, and December.
- Train a Client Care Coordinator: Assign a team member to present PCPs, handle objections, and explore payment options.
- Simplify Invoices: Use clear, jargon-free language to ensure clients understand the value.
- Estimate High, Bill Low: Get client buy-in on slightly high PCPs, then delight them with a lower final bill.
- Communicate Clearly: Ensure every client leaves the exam room with zero questions about their pet’s care plan.
This system lets you move to the next patient, boosts PCP acceptance, and ensures pets get the care they need.
3. Communicate Value, Not Just Price
Price only feels “high” when clients don’t understand the value. I once overheard a couple who switched from an AAHA-accredited cat hospital to a cheaper practice after a $1200 dental quote, saying, “My dentist only charges $125!” Their new clinic botched the procedure, landing their cat in crisis. The issue? The original invoice was jargon-heavy, leaving them fixated on the bottom line.
To avoid this:
4. Under-Promise, Over-Deliver
Never let a client face “bill shock.” Their power of choice is sacred. Present clear, agreed-upon estimates upfront, and aim for final invoices to come in below the quote. This builds trust, encourages rebooking, and turns clients into raving fans who spread the word about your practice.
Action Items for Private DVM Owners
Ready to set fees that earn Applause? Start here:
Your Path to a Thriving Practice
Setting fees doesn’t have to feel like a chore. With a data-driven system, a skilled Client Care Coordinator, and crystal-clear communication, you’ll hit that “not too hot, not too cold” zone. Clients will embrace your PCPs, pets will get top-notch care, and your practice will thrive—financially and emotionally. Pair this with robust marketing to keep clients flowing (a topic for another day), and you’ll have a practice that earns a standing ovation from your team, your clients, and your community.
Take these steps today, and watch your private veterinary practice shine.
