VCA Antech Competition
Now Viewing VCA Antech's competition in: Veterinary Services (primary)
Call Preparation Questions
Customers, Marketing, Pricing, Competition
How large a geographical area does the practice serve? How many clients? - A typical animal hospital with several veterinarians has 5,000 clients.
How many competitors are in the area? - Most clinics have direct competition from several other practices.
How does the practice determine fees? - Because veterinary charges aren't regulated, vets can essentially charge whatever the market will bear. However, vets, unlike physicians, usually aren't paid by insurance companies, and therefore can't count on as many people willing to pay large amounts for their services.
How does the practice market its services? - Larger practices use newspaper and radio advertising, direct mailing and the Internet; many small practices depend on word-of-mouth.
What marketing methods does the vet use to encourage customer referrals and retention? - Some practices send new clients welcome letters, new pet congratulation and birthday cards; make follow-up calls after procedures; provide examination report cards and client survey cards; and offer home office numbers for after-hours emergencies.
Competitive Landscape
Demand is driven mainly by the number of cats and dogs kept as pets, which is affected by demographics. The profitability of an individual clinic depends on marketing skills, and by the range of services the practice offers. Large practices enjoy economies of scale in marketing as well as more capital to invest in onsite diagnostic equipment. Small practices can compete effectively by specializing in particular animals or types of treatment, or by serving an exclusive area.
Business Challenges
CRITICAL ISSUES
Competition from Pet Store Chains - Independent vets are getting more competition from in-house vets at large pet supply retail stores. Banfield has an agreement with PetSmart, the largest pet supply retailer in the US, to provide vet care in 685 of its retail stores in 2,000 square foot animal hospitals. Banfield pet hospitals also contain x-ray and diagnostic equipment, surgical facilities, and provide services such as boarding and grooming.
Older People Less Likely to Own Pets - Demand for vet services will level in the next decade because an aging US population is less likely to keep pets. Older working people or retirees who travel frequently are less likely to own the industry's backbone pet, dogs, which require higher and more expensive maintenance. Increasing urbanization and two-income families, with owners away during working hours, make pet ownership impractical, especially of dogs. The population of pet dogs is expected to stay constant during the next decade, while the number of cats will increase just slightly.
Industries Where VCA Antech Competes
- Consumer Services
- Veterinary Care(primary)
- Health Care
- Health Care Products
