Setting fees is part of marketing. Setting fees appropriately positions your practice in your market. If your preferred positioning for the practice is to be the low cost provider, then setting fees too high will not position your practice favorably to that audience. If you desire to be perceived as the best, most complete, and extensive service in the market, then setting fees at the top end of your market will help you to position your practice in that manner. Different fees will attract a different audience.
Establishing an appropriate fee schedule is one of the most important activities of a veterinary practice with respect to accomplishing financial objectives. If fees are set too low, then you may be extremely busy, but profitability will suffer, cash flow will suffer, and the practice will not be in good financial standing to support the objective of providing care to its patients and clients. If fees are set too high for your market, then client flow may be lower than desired, which will impact profitability and cash flow as well.
Pick your target market, and set fees appropriately.
