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VHMA Critical Issues Summit on Pricing

By Jim Nash posted 08-30-2018 14:05

  

I recently participated in a first-of-of its-kind, comprehensive pricing workshop organized by the VHMA. The 2018 VHMA Critical Issues Summit on Pricing explored the potential of adopting Value-Based Pricing in the veterinary industry.

Marketing expert Uptal Dholakia, Ph.D., introduced participants to Value-Based Pricing, a framework that merges academic research, proven best practices and concepts from marketing and psychology to create a solid foundation for formulating realistic and compelling pricing decisions.

VHMA invited industry leaders, consultants and managers to collaborate and brainstorm for two days in a setting that featured expert presentations, followed by in-depth, small group discussions. The room buzzed with excitement and there were more than one “aha” moments when the full impact of Value-Based Pricing---which considers costs, customer value, reference price and value proposition--- became apparent.

As I headed home from the meeting, I thought about what transpired during the workshop. I was impressed at the effort put forth by participants who unequivocally felt that the struggle to price rationally and effectively is real! The discussions generated during the Summit were thoughtful and enthusiastic. Did we arrive at definitive answers? No, but, by sharing perspectives and insights we are in a better position to tackle pricing.

I was also pleased at how effortlessly VHMA is transitioning into a more strategic role to better serve its members. Three years ago the Board began discussing ways that it could offer managers the tools and resources to address the industry’s most challenging issues. The Summit was the forum we agreed upon to take on pricing, an issue that posed challenges but also provided opportunities for developing the tools and resources to allow managers to meet these challenges,

Finally, given the outcome of group discussions and the feedback from participants, I am excited about the next steps and the potential for future VHMA Critical Issues Summits.

The results of the Summit will be the published in a white paper that will introduce the core concepts, frameworks and tools for pricing strategically. Insights generated by the attendees will also be included. Dr. Dholakia will be presenting insights learned at the Summit at the upcoming VHMA 2018 Annual Meeting and Conference.

Pricing is not easy, therefore it is critical to understand the strategies that can contribute to better pricing decisions so that staff can effectively justify the rationale behind price changes and feel confident about pricing decisions. Good pricing impacts a practice’s ability to pay competitive wages, retain employees, attract and maintain clients and increase profitability.

The resources and tools that evolve from the Summit will provide managers with the means to make important contributions to the practice. Managers who understand how to price strategically are adding value to the practice and elevating their role in the practice.

The 2017 Membership Survey revealed that managers are interested in becoming more effective advocates for their positions. As VHMA takes on critical issues and develops concrete approaches for implementing effective decisions in the workplace, managers can use this information to bolster their standing in the practice.

I encourage all of you to review the white paper when it is available to determine how this information can be used to improve pricing strategies in your practice. I also look forward to your feedback. The VHMA Life is best lived through open communication and support. Your comments are important and will help the VHMA to better support its members.

Jim Nash, MHA, CVPM
President

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