Posted by Edith on July 02, 2003 at 02:43:53:
In Reply to: Re: Raising prices.... posted by Jim R. on July 02, 2003 at 01:14:46:
: : : OK last year we went up 5$ for basic shoeing no frills deal.
: : : Since then cost of doing business/ living and FUEL have gone up horribly. We want to go up another 5 $ end of August. We are only at 65 and should be at 70. One of those cases of underestimating your abilities and starting to low to begin with.
: : : The top guy is only 75 and should be at 90.
: : : I am working on the letter to our customers right now but do not feel great about jacking it up 5$ two years in a row.
: : : We went through the customer list and it seems the only clients we might loose are the SAME clients we have been trying to get rid of.
: : : Thanks
: : : Edith
: : Two pieces of advice:
: : 1-Easy one - do not raise $5.00, raise 7 or 8 so it does not look so arbitrary. Gas prices went up a lot faster then this and this is a major expense for you. To soften the blow, explain to clients that a price increase has been delayed for far too long trying to help them out and this is a necessary evil of doing business.
: : 2- Hard one - calculate what you want to make and how much you want to work then deduct your overhead costs and you should be able to accurately figure out how much you should really charge.
: : M. W. Myers, D.V.M.
: Here is something that allows me to raise prices and keep my regulars happy. I set prices $10-$15 dollars higher for new clients for shoeing and $3-$5 extra for trims. On regulars I keep shoeing and trim prices the same for a couple of years but I increase my service call fee by $5/year (same with new clients). This weeds out a number of one horse accounts but isn't a significant increase for my loyal clientele who have more than three horses. I also calculate my break even cost (figured from last years numbers) every year which lets me know how much prices need to go up for the following year along with my service call fee . If you attend a number of clinics every year make sure you give yourself a raise. These things aren't free and it makes you more valuable to your clientele. The bottom line is if your going to increase your fees(by more than the cost of living) you have to offer a better finished product and a better service to your clientele. You won't get many complaints if you strive to do this.
: Jim R.
Thanks guys. I figured going up by 5 would round it out to 70 and keep the numbers even. The biggest thing that is killing us is the fuel. I should not say killing us but it is what is getting into our pockets the most. Fuel prices have been up long enough it is now effecting our supplies (nails and shoes). We just got a notice from our supplier that prices were going up. As for impression material and extras like that we price them out seperate and that goes with what ever it is costing us plus.
We are off for a week vacation and I will have that time to ponder. I know what our bottom line is and have done all the calculations. We should be making more than 70.
Miles does attend any and all clinics he can get to. This year his big one will be the Laminitis Symp in Kentucky.
Thanks Again
Edith