Jump to content

Are we in phase 1, 2 or 3 of the inflation/recession period? Talk to us.


Recommended Posts

  • Flutter of Butterflies Group

I am going to jump in here and be one of the first. Someone has to go first right? Yep, I am seeing inflation hitting part of my practice amongst lower income families. I am trying to weave in conversations about pet insurance to new pet owners but not really sure how to have that discussion. Is anyone else focusing more on pet insurance?

Link to comment
  • Antelligence

Agree that inflation is most critical to those at the lower end of the economic spectrum. There may be some good news to counteract that dynamic though, which is Millennials and GenZ are very passionate about their pets, and don't appear to be cutting back at this point. Hopefully that remains the case even if we head into a recession...or are we in one? The definition has magically been changed!

Link to comment
  • Administrators

Chris,

I noticed in the Fountain Report today too this piece you included:

Quote

Housing-related pet surrenders tick up as inflation forces relocations and dampens pet spending

From article 3.1: Most pet owners are spending more on their animals now than they were six months ago, according to a new survey by Rover.

The survey found that to adjust for increasing prices, pet owners are buying less expensive food, treats and accessories for their dogs. In some cases, owners have had to give up their pet.

Monica Dangler, director of Pima Animal Center in Tucson, told CNBC that while a year ago housing-related surrenders made up 6% of the shelter’s surrenders, they now make up 18%.

Source: CNBC

 

I thought this was interesting data to throw into the discussion.

Kelly

Link to comment
  • Flutter of Butterflies Group

Yes!  Great point made Chris.  We have also noticed that our Millennials and GenZ clients are still coming in strong here as well.   We are hoping this remains the case for some time.  What is everyone else noticing?  What do we need to do to get involved with offering some kind of financial support for the others?  

Link to comment
  • Flutter of Butterflies Group

I'm hopeful or overly optimistic that the recession might affect the veterinary slightly less (fingers crossed), given how passionate the younger generations are about their pets, like Chris said. That with the fact that adoptions are up and still that way. Just wishful thinking, but trying to put a positive spin!

Link to comment
  • Flutter of Butterflies Group

 

We have noticed that our clients aren't coming in as much during this time.  It has happened slowly, but now seems to be picking up.  Does anyone have any suggestions on how we can make our pricing a little more helpful maybe in these times?  Is anyone doing that without completely tanking? 

 
Link to comment
  • Administrators

Techlife,

How are you communicating your pricing now? Some communication tips around pricing are:

  • A blog about the benefits of preventative care and how a check up can help solve health issues sooner and less expensively then waiting for an ER Visit.
  • I would talk to your team about how pricing is discussed. If the team approaches pricing as the elephant in the room everyone is uneasy. Having the whole team comfortable with the pricing structure can help. Or train one or two people on the team to have the pricing discussions that are in a conversation format.
  • Be consistent about the discussion of pricing and how people can pay for it.  Make sure to check the website, any social media, blogs, receipts anywhere there is messaging about your pricing and make sure it is the same. Different messages from the same business make people uneasy.
  • Include on your website services people can use of the hospital for under $100 dollars or break it into groups of $50, $100 and $150 dollars of the services you offer. People are more likely to come into a business if they know there is a back stop to their expenditures.

Kelly

Link to comment
  • Flutter of Butterflies Group
18 minutes ago, Hill Valley Veterinary said:

I'm hopeful or overly optimistic that the recession might affect the veterinary slightly less (fingers crossed), given how passionate the younger generations are about their pets, like Chris said. That with the fact that adoptions are up and still that way. Just wishful thinking, but trying to put a positive spin!

I agree with the idea that younger generations are important here - it seems like most of the younger generation of people in this area have a dog or cat (or even exotics - I'm personally acquainted with several owners of snakes or spiders). They're definitely devoted to their pets, and do what they can to take care of them.

Link to comment
  • Administrators

Ashmanonar,

My neighbor who is a principal at a local High School told me a story this week about how a kid brought his pet 8 foot python  to school in his backpack because he loved it so much. He didn't want it lonely at home. So the younger generation does have a strong bond with ALL types of pets. Needless to say the snake was asked to stay at home and not attend school with the student.

Kelly

Link to comment
  • Administrators

Hi all,

Doubling back to this conversation with some new information I found today about trends in the greater world with inflation and recession in the world/US.  In this report here at https://www.zerohedge.com/markets/major-us-retailers-warn-lower-income-consumers-are-trouble :

Quote

Companies from McDonald's Corp. to Costco Wholesale Corporation to Burlington Stores, Inc. to Nordstrom, Inc. to Macy's to Advance Auto Parts, Inc. to AT&T Inc. to even Dollar Tree, Inc. have all echoed a very alarming message that low-tier consumers are scaling back purchases as inflation bites. 

 

Quote

Then car-repair retailer Advanced Auto Parts said that soaring fuel prices and elevated inflation led to declines in do-it-yourself demand.

Retailers are having a tough time as low-tier consumers appear exhausted. Even Dollar Tree slashed its full-year profit outlook, citing a higher cost of living and inventory woes due to economic pressure on low-tier consumers. 

Remember that Walmart had already cut its profit outlook as consumers purchased less-profitable groceries.

Also from the summer was AT&T when CEO John Stankey said customers are starting to put off paying their phone bills. 

And then there's the figure of at least 20 million households -- or about 1 in 6 American homes -- are behind on their power bills. 

Also housing prices are starting to collapse as a leading purchaser of homes just throttled back. https://www.zerohedge.com/markets/other-shoe-drops-blackstone-landlord-halts-home-purchases-38-cities-market-crashes

What are you all seeing in hospitals?

Kelly

Link to comment
×
×
  • Create New...