The art of retailing in veterinary practice

Retailing is an area in practice where many veterinarians tend to feel uncomfortable. Veterinarians are typically not trained in marketing and sales techniques, and thus can be pulled out of their comfort zone when displaying and strategically marketing various products. A lack of background in marketing, combined with competitive pressure from pet superstores and other high-volume, low-margin retail outlets, makes it tempting for veterinarians to avoid pushing retail sales and focus on the professional service side of the business.

The reality is that the animal-owning public goes to their veterinarian for advice on products, as well as services, and if they don't buy a product from their veterinarian, they will buy it from someone else, often on a repeated basis, and without the benefit of the veterinarian having an opportunity to conduct some client education every time they walk through his door.

According to Opperman (1), a practice should be able to generate $20 000 in retail profit per $400 000 in income, not including food sales, if the marketing is done strategically and correctly.

The secret to any retailing is using marketing to create awareness and stimulate action on the part of clients. Like any other retail outlet, there are some practice- specific strategic planning ideas you can implement in your business to help to stimulate retail sales.

1. Location, location, location! Every practice will have a different amount of space in which to display retail products. Regardless of the amount of space your practice has, it is important to have your retail display area visible to clients as they move through the client area of the practice, and in such a location that client flow can progress through and around the display area without any traffic jams. “Point of purchase” displays located in a place where clients must pause, usually near the reception or billing desk, are most effective, and serve to visually remind clients of something they need; and consequently, they can stimulate impulse buying at the time of checkout, when clients are generally no longer as focused on the primary reason for their visit and, therefore, are less likely to be as distracted or preoccupied. Point of purchase locations allow reception staff to explain the use of products, and their general proximity to the check-out allows the displays to be better monitored and helps to deter theft. Limited examination room displays are also effective, but mainly for products and their application that are best explained by the veterinarian.

2. Let them play! Consumers like to handle retail items, read the package information, check the cost, and get a close look at the product to help them to make a judgment on its perceived value for them. Retail products will not sell as well if clients have to ask for them, are unable to get a good look at them, have to search to find the price, or see that a product is sparsely stocked (“there are lots of these on display, everyone must use them, so I should take a look”).

3. Don't over brand! Carrying multiple lines of any retail product crowds your own market, takes up space, increases your purchase and carrying costs, and often confuses the client. The most effective products for veterinarians to carry are those that capture their distinctive competencies, complement their veterinary services, and are items that other retail businesses generally do not or cannot sell. Examples of the more popular, veterinary exclusive items include prescription foods, grooming aids (shampoos, cream rinses, special brushes), odor control agents, portable carriers, books, and parasite control agents.

4. Know your stuff! One of the criteria on which veterinary clients judge their providers is assurance, or how well they appear to know their material. Retail sales are no different. Staff training and knowledge become essential, because the staff will be responsible for explaining and recommending many of the retail products on display. Clients will listen to staff recommendations; they particularly like products that the veterinarians and staff use on their own animals.

5. Set up a catchy display! The appearance of your display unit creates an important visual perception that prompts clients to look closer at products. It should be inviting, well lit, and organized. Consider the following tips:

   1. Inclined or graduated shelving (back shelves are higher than front shelves) works better than countertop or flat shelving, where products are on the same level and one behind the other. Smaller products should be in front and towards the top, with larger products behind and towards the bottom of the display unit. If a particular product comes in different sizes, the larger sizes should be to the right side of the display. If the display cabinet is deep, it should be well lit inside.

   2. Place your best selling, highest margin items at eye level, if possible. A 1980s study by Proctor and Gamble (2) found that retails sales improved by 200% when products were placed at eye level.

   3. Products should be grouped functionally or by their purpose, if possible; for instance, all shampoos and dermatological agents should go together. Be sure to label each functional area, thus helping to lead clients to the right product.

   4. Make sure that supporting literature from the company is available near the actual product. Should a client purchase the product, the literature will help to educate the client and verify the value added. If a client is thinking about purchasing a product, the company literature can help to inform and serve as a prompt for a future purchase (3).

6. Take advantage of the marketing opportunity! Retail products can be an excellent vehicle for identifying and helping to promote the practice through customized price labels, stamps, and attached cards. By displaying or emphasizing seasonal products, your retail display can also be a vehicle to help to promote seasonal activity and services in the practice. Purchasing a product also provides clients with an opportunity, through interpersonal interaction with a staff member, to make general inquiries about their pet's health, be reminded about overdue visits, increase awareness of the practice's services, and possibly schedule a future appointment.

Many of today's clients with busy schedules are looking for one-stop shopping to meet all their pet's needs. Practices practising efficient and aggressive retailing have an opportunity to meet those needs, increase client satisfaction, and enhance their incomes.