Understanding the business (Part 2)

Most veterinarians are not comfortable when discussing fees, or when asked to "sell" something, but this is normal! This chapter offers a method which will allow you to prescribe or recommend products and services effectively.
 

Prescribing and selling medicine or foods

As a veterinary physician, your role will be to focus on providing medical and surgical care; this is the very core of your profession. It goes without saying that the economic success of any veterinary practice is based on the quality of services provided and the skill of the team in promoting and recommending these to clients (Figure 2). Nevertheless, as a vet you will always be recommending and hopefully selling drugs, food and accessories. For this reason, in this section we will assess the relative importance of those factors that contribute to successful prescribing and selling.

It is important to note that significant differences exist between countries in the regulations governing the prescription and sale of veterinary services and pharmaceutical products. The provision of veterinary services almost always includes recommendations or prescriptions for items such as drugs, food and sometimes accessories. 

However, there are significant variations in how these products can be sold:

• Even within the European Union, national regulations govern whether it is or is not possible to sell recommended or prescribed products.
• Depending on the competitive environment of each country, veterinary practices may or may not be allowed to compete on the open market.

The importance of recommendations

In the veterinary world, “recommending” is often used to mean “selling”, although that word does not have good connotations within the profession! Recommendation is used to mean convincing an owner that, given the health of their animal – its physiological state and/or way of life and/or illness – the solution recommended by the vet represents the best option. This process is a purely commercial one, even if at this point it only involves selling an idea. It should be noted that recommendations not only relate to drugs or products, but can also be made for food or specific services. Successfully convincing an owner that their three-year-old Yorkshire Terrier, presenting with localized gingivitis, would greatly benefit from having their teeth cleaned requires a recommendation process.

When vets need to administer drugs to an animal or change its eating habits – whether as prevention or treatment – the recommendation process becomes a technical requirement. The process can be extended to include hygiene products such as those used for dermatological, oral or dental conditions. The quality of the recommendation process defines the level of compliance, mainly by ensuring that clients understand and consent to the proposals. Many of the compliance problems that vets complain about are the result of a poor or non-existent recommendation process.

The relevance of distribution

In most cases, the recommendation process is therefore essential. Where the regulations permit such an approach, many vets will want to know if it is better to sell a particular recommended product or if it is preferable to focus on providing bespoke services and recommendations. In summary, there are at least three advantages to selling drugs or food wherever possible:

• For owners, the ability to purchase items as soon as they have been recommended is an undeniable advantage, as they get the recommendation and the products in one go, ensuring compliance. This concept is known as “one-stop shopping” and is particularly effective given the convenience it provides for the client.
• As a consequence, the animal is the second beneficiary of the practice distributing products, because compliance improves when recommendations and sales are consecutive. The owner has no need to go elsewhere and there is no risk of them forgetting or changing their mind.
• Finally, for the practice, the sale of products and food provides an additional income stream although this varies according to the competitive environment (see below).

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