It’s said that cliches become cliches because they often contain an element of truth. For a business, “watch your pennies and nickels and the dollars will take care of themselves” is one of those. Although there is more to running a business than controlling costs, there’s no doubt that careful scrutiny and planning can have a positive impact. For a veterinary practice focused on patient care and other big-picture challenges, scrutinizing expenses may take a back seat to other priorities. But fewer patient visits and the unsustainability of price increases elevates the importance of expense controls for profitability.

Although expense reductions can’t prevent fee increases for certain services, they can impact the amount. Plus, it can improve your bottom line. Here are a number of simple ways veterinary practices can save money.

The Impact of Risings Costs

Although many clients will spend whatever it takes to care for their pets, it’s clear that rising costs do have an impact on office visits. The Cleveland Research Company conducted a survey gauging price sensitivity among pet owners. Higher prices have an impact on:

  • How quickly they take their pet to the veterinarian
  • How often they take their pet to the veterinarian
  • Where they purchase prescription medications

For most of us, when the price of a service goes above a certain level, we consider alternatives. Veterinary practices are not immune from that issue.

Simple Ways Veterinary Practices Can Save Money

There are opportunities to reduce costs in both the high and low-profile areas that are typical of any veterinary practice. Establishing well-defined processes throughout your organization is key to maximizing the potential dollar savings.

Inventory

Inventory represents the second largest expense next to labor for any practice. Maintaining supplies of:

  • Pharmaceutical drugs
  • Medicines and ointments
  • Shampoos, flea and tick treatments
  • Pet food

... not only result in a substantial financial outlay but when not managed properly, generate unnecessary costs. Inventory costs represent approximately 20% of total revenue for the average practice with many of the inventoried items generating significant practice revenue. Although you can’t afford to run out, too much inventory, some of which may have passed an expiration date, is like lighting money on fire. How do you balance the two?

One option is implementing a color-coding system that will prevent you from running out of critical supplies. Use a stoplight approach where each color dot signifies the importance of that item.

  • Red - essential items that you should never run out of and are at the top of the list of items you use and sell. These include products crucial for patient care and a high percentage of your revenue. They should account for approximately 20% of your inventory and require frequent checks to make sure you never run out.
  • Yellow - less essential items that you sell less frequently and drive a smaller amount of revenue. It’s important not to run out of these products, which requires evaluating stock every week or so. These items represent approximately 30% of your inventory.
  • Green - these products are not critical and represent approximately 50% of your inventory. If you run out, you can reorder them and restock within a few days. Green items are good candidates to carry online. If you do stock them in-house, check inventory levels monthly.

This approach not only helps you maintain proper inventory levels but demonstrates that unusual activity won’t go unnoticed and serves as a theft deterrent.

Monitor Expiration Dates

Clearing marking expiration dates is another inventory cost avoidance opportunity. Although a common practice is to place older items in front of new ones, that doesn’t always occur. So, reinforce the importance of properly managing inventory with your staff and mark it with expiration dates. Visible labeling makes use dates more obvious and reduces waste and their associated costs.

Also, label shelves with unique drug categories to ensure staff know where to place each item, thereby reducing the chance that drugs get misplaced and ultimately wasted.

Technology Enhancements That Impact Costs

Veterinary practice management software helps to organize the day-to-day operations of a practice. Capturing patient demographics, scheduling appointments and managing clinical functions like medication dispensing, laboratory and diagnostic work are just a few of the capabilities. These systems also help to simplify scheduling, charting, invoicing, communication, and more, which can increase productivity and reduce costs.

In addition, you can implement certain components of practice management software that don’t require the same level of investment. Online appointment systems are one example. They save staff time and, by offering a convenient option, improve client satisfaction.

Plus, adding services like telemedicine can streamline various administrative processes including appointment scheduling. Virtual consultations allow for flexible and convenient time slots which translate into time savings for staff and reduce no-shows and related costs.

Outsourcing

Hiring a third party to perform certain tasks may present an opportunity to reduce labor and overhead costs. For example, outsourcing can reduce the costs of hiring, training and retaining employees and manage their salaries and benefits. It can also reduce space requirements which lower fixed costs for utilities and rent if you lease your facility.

Although outsourcing does present potential cost savings opportunities, it’s essential to assess if it fits the proper profile.

  • Is it mission-critical or complex? The more critical the business function, the higher the risk it is to turn it over to a third party.
  • Is it client-facing? Your business is nothing without a loyal client base. Do you trust a third party to handle scheduling, follow up or other client interactions?

Other Waste Reduction Opportunities

From supplying prescriptions for patients to preparing packages for mailing and shipping, label printing touches numerous areas of a veterinary practice. Yet, these common applications are fraught with potential waste traps that can increase costs.

For example, usage studies on printed products, such as labels, show that more than 80% of the cost is associated with the process surrounding the product, not the product itself. This includes printers, label dispensers and material storage practices and the time it takes your staff to execute each process. If there is a hiccup, in addition to the frustration, it leads to an unnecessary increase in your overall costs.

Focus on Label Efficiency

Labels with features such as RFID technology, QR codes, special materials, and more, can simplify complex processes and provide access to critical information.

For example, RFID labels can be used to track inventory in real time. This provides more precise monitoring of stock levels, expiration dates, and reorder points, which reduces the likelihood of stockouts or overstocking.

In addition, medications dispensed into small test tubes and medicine vials often require a label to designate the type of medication, dosage and expiration date. But, labeling a tube with a very small diameter presents a unique challenge, primarily due to the tight curvature of the surface. A special label material and adhesive are required to prevent the label from detaching and creating a potential medication error.

UAL drug syringe labels and tapes are designed to adhere to small diameter syringes and vials.

Further, smart labels can include embedded QR codes that link to detailed drug information or patient records, providing veterinarians and staff with instant access to the data they need to make informed decisions.

Know Your Printer Settings

Appropriate printer settings optimize print quality, size and orientation. And correct settings will help prevent the need to reprint labels. For example, depending upon the type of printer you use, adjusting the printer settings for paper type or media to labels or cards will optimize the print quality. Wasting 10 out of every 1,000 labels represents an ongoing 1% increase in cost. Plus, if you use a laser printer and are printing an item for the first time, use paper to proof the information, not a label. Paper is 1/10 the cost.

Label Dispensers 

If you use a dispenser to apply labels, make sure it’s designed so it doesn’t cause you to waste a label. In fact, if you destroy 1 out of every 25 labels, you just increased your cost by 4%.

Storage

What’s more, storing your labels properly improves processing, efficiency and reduces cost. Moderate temperatures and humidity will improve the printer output. Storing labels on a shelf or in a cabinet, instead of the floor, makes handling smoother. Be careful to avoid dents or dings that force you to dispose of a damaged product. Follow these guidelines to minimize the impact of humidity and warm weather when printing labels.

Enhanced Focus on Labeling Efficiency

Label and paper products are commonly designed to run on specific printers. Many printers include preprogrammed formats that simplify the printing for common applications. For example, brands like Zebra and DYMO include options for common office applications such as:

  • Prescriptions and medications
  • Mailing and shipping
  • Files and binders
  • Badges, assets and barcoding

Maintaining a supply of labels for each format and then using the one designed for that specific application will reduce label waste and expedite the printing process. And, when possible, print each application in a batch to save time and reduce label waste.

Staff Training

To fully capitalize on cost-saving strategies, it’s essential that veterinary practices actively engage their staff in identifying and implementing these opportunities. One effective approach is to provide targeted training sessions that focus on the various areas where cost savings can be achieved. By making cost-saving practices a shared responsibility, the entire team can contribute to a more efficient and financially sustainable practice.

Embracing Sustainability for a Greener Practice and Lower Costs

Integrating sustainable practices into your veterinary operations not only contributes to a healthier planet but can also reduce expenses. By adopting these strategies, you can make a meaningful impact on both your carbon footprint and your bottom line:

Optimizing Resource Usage

  • Water Efficiency: Implementing water distillers for autoclaving minimizes water waste and ensures a consistent supply of clean water, cutting down on both resource use and costs.
  • Switch to Refillable Containers: Opting for refillable containers instead of single-use disposables reduces waste and long-term expenses.
  • Anesthesia Alternatives: Exploring alternatives to inhaled anesthetics, when appropriate, can significantly reduce greenhouse gas emissions and lower your environmental impact while maintaining patient safety.
  • Eco-Friendly Shipping: Consider using linerless labels for shipping materials. This small change can reduce waste from the liners used on traditional labels.

Maximizing the Lifecycle of Materials

  • Reusable Solutions: Incorporate reusable items such as sharps containers, gowns, kennel mats, and warming blankets into your daily operations. These items not only reduce waste but also offer long-term savings by minimizing the need for frequent replacements.
  • Creative Packaging Reuse: Reusing packaging materials, like boxes and stay flats, is another effective strategy. Even when labels or text are present on reused packaging, blockout labels can easily conceal them, making these materials ready for another round of use.

Commitment to Recycling

  • Effective Waste Management: Establish a comprehensive recycling program for paper, cardboard, metal, glass, and certain plastics. Properly managing recyclable materials helps reduce disposal costs and lowers the environmental impact of your practice’s waste.

By thoughtfully integrating these sustainable practices, your veterinary practice can achieve a dual benefit—contributing to environmental stewardship while also driving operational efficiency and cost savings.

United Ad Label

With over 60 years of label experience, United Ad Label provides cost-effective products that allow you to minimize costs regardless of economic conditions. Veterinary practices can save money using UAL services. Contact us to learn more.