The vet industry is being encouraged to consider net net pricing opportunities following recent research by Nupsala which revealed that 96 percent of vet practices agreed with the pricing strategy.
The research was on the back of the Competition and Markets Authority (CMA) investigation into the veterinary sector amid growing concerns about competition, transparency and the impact of corporate ownership on pet owners’ ability to make informed decisions regarding their pets’ healthcare.
Net net pricing is the final price that is paid for a product or service after all discounts, promotions and additional charges have been applied and it represents the true cost to the practice after all reductions. It provides vets with total transparency, as the final price is known from the outset, and ensures a level playing field among corporate groups and independent practices. It also helps simplify prices charged to pet owners.
The Nupsala research questioned approximately an equal split of members of staff at fully independent practices, practices that were part of a buying group and those from a corporate group. It highlighted that 68 percent of veterinary practices were in favour of the price clarity which resulted from net net pricing, while 42 percent were supportive of the strategy as they did not have to wait for rebates to be paid and then check the final amount for accuracy. Moreover, 58 percent liked the concept as it enabled vet practices to offer flexibility when it came to charging, and they could pass savings on to owners. Transparency on profits was appreciated by 24 percent of the vets questioned and 20 percent felt net net pricing enabled them to compete with online pharmacies, delivering further opportunities for them.
Nupsala first adopted net net pricing this year to reduce confusion and to make pricing fairer for all practices, no matter what the size. One practice that has embraced net net pricing is Little Rock Equine Vets in Staffordshire.
Shelley Cook, veterinary surgeon and director at Little Rock Equine Vets, comments: “As an independent equine practice, Nupslala’s net net pricing policy ensures that we are on a level playing field with the larger corporate groups and online pharmacies when purchasing musculoskeletal and orthopaedic treatments. The simple, but competitive pricing strategy is easy for the practice team to work with, and it enables us to pass on savings to our clients.”
Greg McGarrell, CEO of Nupsala, adds: “We have long been advocates of net net pricing and adopt it in our pricing strategy wherever possible to provide our customers with ‘no nonsense’, clear and concise pricing for all practices, from corporate groups to stand-alone independents. We have a wide range of products available at a net net price, which ensures practices can compete fairly, not only with each other but also with online pharmacies, giving practices flexibility on their charging strategy to clients.”
For further information on net net pricing or Nupsala’s product range, contact your local Nupsala account manager, go to their website or contact them here.
