The upscale market is bigger than you think

Reluctant to purchase high-tech equipment because you're concerned clients can't afford costly diagnostic tests? You may be right. But consider the following facts from the recent article "Putting on the Dog" from www.businessweek.com:

• With the growth in baby-boomer and empty-nester populations and more people delaying marriage and children, many pet owners have elevated the place their animals hold in their lives.

• Consumer spending on pets continues to climb and is expected to reach $35.9 billion this year alone, according to the American Pet Products Manufacturers Association—up from $17 billion just a decade ago.

• One of the fastest-growing areas in the industry is the pet spa, with such offerings as pedicures, massages, and birthday parties. Formed almost five years ago, the North American Dog Daycare Association already boasts 746 members.

• More hotels not only allow pets but also offer plenty of amenities. One of the most expansive programs belongs to the Kimpton Hotel Chain, which features a variety of pet packages at its 38 locations in the United States and Canada. These include turndown service in designer beds, walking, grooming, acupuncture, room service, and the assistance of special pet ambassadors.

• Finally, according to "Catering to the Consumers with Animal Appetites," published Nov. 14, 2004, in The New York Times, "Companies traditionally known for human products, like Gucci, Harley-Davidson, Ikea, Lands' End, Paul Mitchell, and Ralph Lauren have begun selling products for pets from shampoos to nail polish to gold-plated bowls."

The number of luxury-seeking pet owners is growing by leaps and bounds. So brainstorm with your staff for ways to make your practice the provider of choice for these indulgent pet owners—while continuing to serve the needs of those with more limited means. One option: Consider offering "Gold Star Boarding," a premium boarding service at premium fees, in addition to traditional boarding.

Bob Levoy

Veterinary Economics Editorial Advisory Board member Bob Levoy is a speaker based in Roslyn, N.Y., who focuses on profitability and practice growth, and the author of 101 Secrets of a High-Performance Veterinary Practice (Veterinary Medicine Publishing Co., 1996).