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Are you obstructing your profit in your veterinary practice?

Posted in Management @ Aug 17th 2017 - By Mark Hardwick, CCG
Are You Obstructing Your Own Veterinary Profit

Discounting and markdowns represent the greatest decrease to gross profit in veterinary practices. 

The below table illustrates the effect of markdowns on gross profit dollars.

It shows how many more units of a product you have to sell, given a set discount off the price and the present gross profit.

Yes, everyone loves a discount, but are you prepared to pay for it in the time, additional goods handling and energy it takes to make up what it costs you?

Valid reasons for discounting...

There are many valid reasons for discounting, including: 

  • To clear aged, damaged, or surplus stock
  • To meet competition
  • To create promotional lines and generate store traffic e.g. loss leaders
  • Relevant to specific groups such as pensioners or gold clients.

Make sure you are discounting for a good reason and that it provides a benefit your practice. 

Any questions for Mark about practice profitability for your business? Ask them in the Comments section below...

To learn more about inventory, profitability and planning come to Practice Management School or take part in one of our coaching programs.

About Mark

Mark has spent the last 15 years in the veterinary industry as a trainer and consultant. A founding Director of AIRC/CCG, his passion is to work with practice owners to build business. Mark specialises in veterinary practice auditing and coaching, in particular, operational efficiencies, strategic planning and financial management. Mark's no-nonsense approach to creating practice profitability sees him in demand as a coach and mentor. Mark is also the General Manager of AIRC/CCG

Click here to visit the Crampton Consulting Group Page in the Vetanswers Business Directory


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