Quote:
Originally Posted by DRJDVM's '69
It's not just the car business..... The Walmart effect is everywhere.... Even in veterinary medicine. More and more "low cost" clinics are popping up. The "bread and butter" stuff like spays, vaccines, flea products etc that used to decent profit generators are all going to low cost clinic, the Internet, Costco or Walmart. Those profit centers allowed me to keep my other services reasonably priced. Now my other services have to dramatically up to offset those lost income source
The low cost places do surgeries at prices I wouldn't even brake even on let alone make a profit. How do they do it? By keeping their overhead as low as possible.... Lowest paid labor, cheapest faculty, cheapest supplies... They cut corners.... It's the only way
So I either stick to my principles and know I will lose clients that focus solely on price.... Which is fine since I wouldn't make any profit anyway.... Or I sink to the low cost client level
The fact is that the top 20% of you customers generate 80% of your income... Focus on those 20% and offer them stellar service
How many of you buy your pets medication online now or at Costco? Do you know how many prescription I write so the owner can buy the medication somewhere else?
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These are excellent point. I made a similar comment in another thread here.
Every company listed on the left needs to figure out who their customers are. There are plenty of ways to make money at the top and at the bottom. Every individual has their own perception of value and it means different things to different people. Some people value price above all else, others value shocks and wheels that look like jewelry, at any price.
Every company on the left also needs to consider that this industry, overall, is shrinking. When you combine a shrinking market, with a slow economy, you have business conditions that are very tough. The only way to stay competitive is through the development of new, innovative products and services. It is the only way to keep your products from being commoditised. When you are the only company, selling a product, that satisfies the needs of your customers, price will no longer be a big factor.
Andrew