Have you noticed less foot traffic through your doors in the last year? If so, you’re not alone. Client visits to veterinary clinics across the United States have slowed. A new white paper from Vetsource analyzed 2024 transactional data from more than 6,500 veterinary practices and found that revenue and visits have been trending down since September 2023. With veterinary service inflation rising by 8% in the last year — 1.6 times higher than the national inflation rate — pet owners are likely finding it more difficult to afford care for their pets, Vetsource said.
The white paper suggested several strategies to help veterinary practices adapt to the changing trends and evolving needs of pet owners:
- Clients Front and Center: Improving communication with pet owners, especially around treatment options and costs, is crucial. Practices should be proactive in providing clear information and transparent pricing. (AVMA’s Language of Veterinary Care is a resource that helps with language to communicate the importance of treatment and cost options, as well as payment options.)
- Offer Flexible Payment Options: Given the financial pressures on pet owners, offering flexible payment plans or financing options for services like surgeries, medications, and diagnostics can help increase accessibility.
- Upgrade and Embrace Technology: Veterinary practices are encouraged to adopt digital tools and platforms, such as telemedicine and online pharmacies, to meet clients’ needs more efficiently and maintain strong relationships with pet owners.
- Prioritize Preventive Care: Focusing on preventive care services that are more affordable for pet owners can help practices maintain steady revenue and keep pets healthy, reducing the likelihood of high-cost emergency treatments.
Staying up to date on the latest veterinary industry trends has never been more important for today’s independent veterinary practitioners. The Veterinary Industry Tracker developed by the AVMA and Vetsource is a must-have resource.
It provides timely insights into the latest industry-specific trends and can help veterinary practices stay informed about shifts in pet owner behavior, market conditions, and financial impacts.
Dr. Link Welborn, CEO of VMG, said he monitors the AVMA/Vetsource Veterinary Industry Tracker most closely for practice trends. “I like this indicator because revenue and visit updates for over 5,000 practices are emailed to me weekly,” he said. “This allows me to make comparisons with trends in my hospitals.”
By monitoring client preferences, treatment patterns, and service usage, veterinarians can adapt their own offerings, pricing, and communication strategies to meet client needs and remain competitive.
And with actionable insights, veterinarians can make strategic adjustments in areas such as client retention, service offerings, and marketing to improve practice sustainability and long-term success.
How confident are consumers?
Meanwhile, the Conference Board’s Consumer Confidence Index (CCI) provides a glimpse of business conditions across all sectors of the economy. This monthly report details consumer attitudes, buying intentions, vacation plans, and consumer expectations for inflation, stock prices, and interest rates.
“The Conference Board Consumer Confidence Index is my favorite overall macroeconomic indicator,” said Dr. Welborn. “Consumer confidence is a strong indicator of pet parents’ willingness to spend money with their veterinary practice, particularly for services that they may consider discretionary, such as wellness care.”
The CCI is closely watched by economists, policymakers, and businesses because consumer sentiment influences consumer spending, which drives a significant portion of economic activity. High confidence typically signals that people are more likely to spend, while low confidence can indicate reduced spending and potential economic slowdown.
Putting it all together
Using data from the AVMA/Vetsource Veterinary Industry Tracker allows veterinarians to adjust their offerings based on emerging trends, such as growing demand for certain medications, pet wellness products, or preventive care. It can also help identify areas of opportunity or challenge in the market, informing pricing strategies, inventory decisions, and service offerings.
And since pet care is often considered discretionary spending, understanding the broader economic picture via the CCI can help veterinarians anticipate fluctuations in demand for their services.
By tracking both industry-specific trends (Veterinary IndustryTracker) and general consumer sentiment (Consumer Confidence Index), veterinarians can be quick to adapt to both immediate shifts within the pet care market and broader economic conditions.
