Selecting Sites and Putting the Customer at the Heart of the Business

Some simple facts about the UK Veterinary Marketplace today:

 The Industry is very fragmented - approximately 3,000 small animal practices in the UK, many under separate ownership.

 Over 50% of UK households owns a pet.

 It's a healthy marketplace - small animal market worth £1bn p.a. (this is the same as the UK mushroom market...); £1.6bn total market including large animal.

 Rise of the corporate - approaching 20% market share (volume).

 More choice - increasingly competitive environment.

 Clients increasingly expect high-quality surroundings, value for money services and extreme convenience (not necessarily in that order).

 Challenging economic conditions.

The client/patient journey is paramount in building a successful practice.

A very quick summary of Vets4Pets:

 Created in 2001

 Currently have over 70 practices trading throughout England, NI, Scotland, Wales and Channel Isles

 Small animal practices only

 Predominantly operated through joint venture partnership business model

 100% privately funded

 Current average practice turnover of group - £593,500 p.a. (based on practices trading for full 12 months at 30/11/11)

 Average active client database - 2,629 (based on all practices 30/11/11)

 40% of practices still under 5 years old

 My background was working within the optical profession prior to veterinary

The old cliché 'Location Location Location' very much holds true when selecting new sites for veterinary surgeries. You must consider the following key factors, all of which I will explore in more detail during this presentation:

 Client expectations and needs

 Site location

 Property type

 Local competitive environment

 Demographics analysis

 Cost base

The following is a very simple statement:

 Clients are at the very heart of your business. Without them, you will not have a business. Exceeding their expectations must be your main priority.

The information I give today should provide you with some of the building blocks to help you achieve this priority.

Make Visiting Your Practice an Easy and Convenient Experience

 Easy access

 Highly visible

 Main road

 Within residential area

Offer Them What They Want, When They Want It

 Make it easy for the clients

 Place products where they can access them

 Listen to your clients

 Give them what they want

Provide a Warm, Friendly Environment

 Make sure the practice is a nice place to visit

 Smile...

 Make a fuss of your clients

Tell Them What You do...In a Language They Understand

 Try not to be too technical when delivering messages

 Keep it light

 Say what you do in a clear way

Staff Training - Ensure Everyone in the Practice is Trained Regularly and Ready To Help

 Provide your staff with the training they need to do their jobs

 Include the softer side as well as the technical side: telephone answering, client service etc.

Cater for Families

 Your business is families...so equip your practice to serve them

 Provide children with toys and equipment to spark their interest

Provide Separate Waiting Areas for Dog and Cat Owners

Some species don't mix - so don't make them mix. It's easy to design a split waiting room in your practice.

Keep the Practice Clean and Welcoming

A clean practice environment not only reinforces an image of quality and hygiene, but also shows you care.

Get Out Into the Community

 Bond with your clients and support them in their activities outside of your practice

 It's so easy to do, yet so few do it

 It takes very little time and money to do, yet adds so much value

Site Location

This is the key factor in creating a successful veterinary practice. Get it wrong and it could jeopardise your business before it's even established. Consideration should be given to:

 Site prominence and visibility (from roadside): hits you in the face as you drive down the road

 Passing traffic flow: time of day

 Ease of access to the practice: easy to drive into, able to drive up to the front door

 Onsite parking: dedicated practice parking

 Can the site be out-positioned by a competitor? Think about the future

 Are there any natural barriers: trees, bus stops, railways, rivers, motorways etc.

 Well populated housing within the locality

 Broadband/Internet connectivity: digital X-ray, social media, practice website, e-mails, cloud-based referral services etc.

Industry Parallels

Think about other professions and how they have developed. Opticians is the easy one, but dentists, Chinese medicine, chiropodists, chiropractors etc. have all moved or are moving into the high street.

Examples of Independent Practice in the UK

 Hidden in a side street

 Little or no parking, hidden behind railings

 Not particularly inviting and looks closed

 Difficult to find, with no signage or advertising

Our Take on a Modern Practice

 Highly visible with prominent signage

 Dedicated onsite parking directly outside the practice

 Lots of natural light

 Welcoming surroundings

 Generally just a pleasant place to be

Understand Who Your Target Market Is

Consideration should be given to:

 The National Census/Demographic Data available

 Understand the demographic classification types

 Identify the demographic types of your target customer

 National pet ownership statistics

 Household numbers within your catchment area/drive zone

 Avoid areas with large population of non-pet owning demographic

One size doesn't fit all. Use the above tools to understand who your clients are and tailor your offering to their individual needs and means.

Do Your Research

Try to pitch yourself in the centre of your target locality and understand its geography. Use:

 Google Maps

 Google Streetview

 Microsoft MapPoint

 CACI Census Data

 Other similar tools to understand your location and that of your competitors...

Understand your site and its surroundings:

 Understand the locality it sits within

 How the locals access it

 Are there any 'rat runs' that bypass it

 Is it at a congested junction?

There is a wealth of regional information available online from government departments on all aspects of your local town. The office of national statistics is a gold-mine of local information on all aspects of your locality

The veterinary market place is becoming increasingly competitive. One or two strong competitors is manageable, but a whole town full requires careful analysis and planning. Ensure you take into account the following:

 The number of competitors within your catchment area

 Standard, size and reputation of competitors

 Location of competitors within the town. Do they out-position your target site?

 Charging policy of competitors. Can you compete?

 Local catchment population

 Vet practice:Household ratio. Can you make it work?

An ideal site:

 Few competitors

 Most of the town is covered within your radius

 Main road

Not so ideal:

 Lots of competitors

 Surrounded from all angles

 Outpitched by many of your competitors

 Clients would have to drive by a competitor to get to you

Client journey and experience should be paramount in your mind when considering the type of property you want:

 Does the style of property positively reinforce the image you are trying to portray?

 Is the property size large enough to support the potential market/footfall? Don't build a self-limiting business

 Do you want a new build or a conversion on an existing building? There are different challenges with each

 Is there prominent signage potential?

 Open plan: is it easy and cost effective to fit out?

 Are you likely to achieve local authority planning?

 Stay away from listed buildings: difficult and expensive to maintain

This is An Ideal...

Drive through...

A before and after of an existing site:

 New shop front to provide open retail look and feel

 Refreshed brickwork and cladding

And a before and after of a converted site:

 Have imagination when looking at existing sites that can be redeveloped

 This example was a petrol station which was completely demolished and retail development built in its place

Understand Your Business Plan

Make sure it all stacks up and you can cover your overheads. Consider and plan for:

 Rent

 Rates

 Utilities and insurances

 Ongoing service charges

 Ongoing maintenance costs

 Purchase/build costs

 Fit-out costs

 Local staff wage expectations

In Summary

 Use the many tools available to you

 Understand your clients and their needs

 Understand your local marketplace

 Know your competitors and what they are doing

 Make visiting your practice a convenient and enjoyable experience

 Choose the right place to site your practice

 Ensure your site projects the image you are trying to portray

 Ensure your practice is clean and inviting

 Ensure your site projects the image you're are trying to portray

 Offer a quality, value-for-money service