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Recent news that the rising cost of pet care could impact Canadians' ability to own and care for their pets could threaten the viability of many pet franchises, especially if customers deem their pricing to be non-competitive or opaque when compared to independent businesses offering similar services.
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Why is there a problem?
An investigation by CBC's Marketplace [1] identified numerous veterinary practices that consumers believed to be independent businesses but that actually belong to major corporations. This lack of transparency is affecting both consumer trust and their finances.
The investigation identified that more than 50% of Canada's veterinary practices are owned by 6 corporations. However, this ownership model is unclear and poorly communicated, not only to consumers but even to vets operating out of the practices in some cases.
This is bad practice because there is little to no accountability when things go wrong. In addition, creative pricing mechanisms often leave the consumer footing the bill or having to make a decision to euthanize a treatable animal because they cannot afford the treatment.
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What is pricing transparency?
Pricing transparency is when a business publicizes its prices in a clear manner, free from hidden costs or added extras that can unexpectedly hike the price the consumer pays. Pricing transparency is essential to maintain customer satisfaction and loyalty, in addition to being a key driver to healthy competition within the sector.
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Why pricing transparency is important for pet franchises
Pricing transparency is essential for all businesses. However, keeping the findings of CBC Marketplace's investigation in mind, pet franchises must make sure that their own business is not, intentionally or otherwise, contributing to a culture of hidden costs.
Pet owners, like all consumers, value integrity. They want to know that the businesses they trust and with whom they spend their money have their best interests at heart. Yes, they know those businesses need to turn a profit, but they do not expect them to do so by misleading them.
Pet franchises must recognize that they are operating in a crowded marketplace, and pricing transparency can help customers compare offerings and make informed decisions about the products and services they purchase.
Businesses that deliver outstanding service should not be afraid of being transparent in their pricing, even if it is higher than that of their competition, as it should also be noted that customers value honesty and are often willing to pay a higher price for superior service.
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It's time to be transparent
We urge all pet franchise owners to assess their pricing structure and ensure that they are taking appropriate measures to reassure their customers of their pricing transparency and value.
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Resources:
[1] https://www.cbc.ca/news/marketplace/marketplace-vet-corporate-ownership-1.7438239
