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\n\t\tOpinions expressed by Entrepreneur contributors are their own.\t<\/p>\n
One of the veterinarians in the hospital community I lead recently came in on her day off to see a long-time patient. It wasn\u2019t an exception. This vet regularly answers urgent emails in the evenings, and tells clients to text her anytime something feels off. Her goal? To be the person they call first.\u00a0<\/p>\n
That kind of relationship carries even more weight as costs and subsequent prices have climbed. Businesses across all sectors are under pressure to raise prices as their costs have risen. But whether customers accept a price increase often has less to do with the number on the invoice than it does with their trust in the person quoting it \u2014 and the value they deliver.\u00a0<\/p>\n
In our industry, as the cost of veterinary care has risen, clinics and pet owners alike have had to make increasingly difficult choices<\/a>. A recent survey found 52% of pet owners had skipped needed veterinary treatments<\/a>, with 71% citing financial considerations.<\/p>\n There are ways to become more efficient \u2013 and businesses need to lean into them \u2013 but every organization eventually reaches the limits of the cost increases it can absorb. Sometimes, raising prices is inevitable. The way leaders approach those increases can protect the trust they\u2019ve built with customers. Here\u2019s how.<\/p>\n Everyone who knows me knows how much I love my dog, Bert. I\u2019d do almost anything to keep him healthy. But like every pet owner, I have a limit \u2013 and it isn\u2019t just about price. When I trust the recommendation and understand why it matters, the cost can make sense. When I don\u2019t, even a smaller bill can feel like too much.<\/p>\n Factors beyond price can account for up to 40%<\/a> of consumers\u2019 perception of a brand\u2019s value, and even customers who can afford a service may decline it if they don\u2019t understand the value or trust the recommendation.<\/p>\n In my community, delivering the best care for every pet is the goal. As market forces push the cost of veterinary services upward, it\u2019s become increasingly important to ensure that the experience surrounding that care \u2013 accessibility, clear communication, thorough answers and the confidence that their veterinarian has their best interests at heart \u2013 builds trust and helps customers understand what they\u2019re paying for, particularly when they\u2019re making difficult decisions about their pet\u2019s care.<\/p>\n The payoff goes beyond customer satisfaction. Organizations with higher trust scores have 2.5 times greater consumer loyalty<\/a> than those with lower trust. In service businesses, where much of the work happens behind the scenes, that trust helps put the price in context.<\/p>\n I recently approved a $12,000 dental sensor for one of our hospitals. We go through a surprising number of them because animals can bite and break them. It\u2019s a good example of the costs behind veterinary care that customers don\u2019t necessarily see in the price of a procedure.<\/p>\n Customers don\u2019t need to understand every line item, but they do need to feel that a price raise reflects real costs and a thoughtful decision. After all, 85% of U.S. consumers say brands and retailers use inflation as an excuse to raise prices<\/a> more than necessary.<\/p>\n Timing matters, too. I\u2019ve seen businesses leave prices untouched for years, then make one large adjustment when they realize they\u2019ve fallen well behind the market. Even when the new price is reasonable, the size of the jump can feel unfair to customers. Smaller, more consistent adjustments are easier to absorb.<\/p>\n Customers can accept higher prices when they understand the rationale behind them. Give them enough context to see that changes are thoughtful, consistent and connected to the cost and quality of the service, and you have a much better chance of bringing them with you.<\/p>\n Raising prices may be necessary, but it shouldn\u2019t be the first move a business makes. Before asking customers to pay more, leaders should look hard at the costs they can actually control.\u00a0<\/p>\n In a service business, most of them you can\u2019t: you\u2019re largely beholden to what suppliers and landlords charge. But labor \u2014 usually the single biggest cost \u2014 is the one you can influence.\u00a0<\/p>\n When costs rise, many leaders look to reduce headcount. But cutting labor can actually reduce efficiency and also undermine the customer experience. Studies consistently show<\/a> that highly engaged teams drive higher productivity, profitability and customer loyalty.<\/p>\n In my business, the people literally are the product, and a veterinarian can only see so many patients in a day. Yet many hospitals build schedules that aren\u2019t adequately staffed, so a technician bounces from room to room while the doctor sits idle between patients. A well-supported veterinarian can comfortably see 14 to 16 patients a day. An under-supported one might manage half that.<\/p>\n Staff a veterinarian\u2019s day properly, and the same team sees more patients \u2014 and because staffing costs are relatively fixed, that added volume flows almost straight to the bottom line, without creating the conditions that lead to burnout.\u00a0<\/p>\n The same principle applies to how we organize the rest of the work. We\u2019re formalizing processes like onboarding, so new hires ramp up on a shared model instead of location-specific training. We\u2019re also standardizing everyday clinical and administrative workflows so the steps are clear and consistent, and we\u2019re clarifying decision rights so people know who owns what and can act without checking up the chain. Together, these mean employees spend less time figuring out how things work, ramp up faster and focus on the work that matters.\u00a0<\/p>\n When costs go up, the easiest answer is often to pass them along. A smarter approach starts inside the business: improve how the work gets done, invest in the people doing it and make sure customers can see the value they\u2019re receiving.<\/p>\n<\/p><\/div>\n One of the veterinarians in the hospital community I lead recently came in on her day off to see a long-time patient. It wasn\u2019t an exception. This vet regularly answers urgent emails in the evenings, and tells clients to text her anytime something feels off. Her goal? To be the person they call first.\u00a0<\/p>\n That kind of relationship carries even more weight as costs and subsequent prices have climbed. Businesses across all sectors are under pressure to raise prices as their costs have risen. But whether customers accept a price increase often has less to do with the number on the invoice than it does with their trust in the person quoting it \u2014 and the value they deliver.\u00a0<\/p>\n In our industry, as the cost of veterinary care has risen, clinics and pet owners alike have had to make increasingly difficult choices<\/a>. A recent survey found 52% of pet owners had skipped needed veterinary treatments<\/a>, with 71% citing financial considerations.<\/p>\n<\/p><\/div>\nUnderstand what customers are really paying for<\/h2>\n
Be strategic about how you raise prices<\/h2>\n
You can\u2019t control every cost. But you can control how efficiently you operate<\/h2>\n
Key Takeaways<\/h2>\n
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