Business
ue to high interest rates and economic uncertainty, both business owners and consumers have found themselves constrained by what’s aptly known as a “trapped in place” economy. Some lucky ones are coping fairly well but, overall, it can be scary out there. The path to success is narrower and rockier than in previous years, but if you can see through the smoke and navigate carefully, you’ll realize there’s tremendous opportunity.
With today’s high interest rates it can feel impossible to make large purchases or major life changes like moving or switching jobs. This, coupled with a period of high inflation, has made people far less mobile than they were before. For example, during and after COVID many people moved, bought new houses or simply refinanced their existing mortgage at rock-bottom rates. Now, with today’s much higher prices and interest rates, it’s significantly more expensive to move than to stay where you are.
So what does this mean for the pet care industry? Fewer people are moving into our markets, meaning fewer new customers are searching for our services. We’re not beating away new customers with sticks like we were last year. So, if you want to be profitable and grow, it’s critical to apply the most important strategies exceptionally well. After all, that’s what owners and managers are paid to do.
But wait, the tightrope walk isn’t over…high inflation and dwindling savings have made consumers more financially sensitive, too. Free money isn’t burning a hole in their pockets anymore, and generally people are more financially stressed and concerned than they used to be. This makes our customers more “choosy” and likely to complain about anything from prices and customer service to unfulfilled expectations. This is especially true if you charge more than your competitors since higher prices cause customers to expect more.
The good news is, even a “trapped in place” economy still presents opportunities in this industry; however, pet business owners must adapt to seize them. Here are three strategies to do just that:
Even in the healthiest economy, properly pricing your services is a delicate operation. But it’s necessary to re-evaluate your prices and price model on a regular basis—yes, even in times of economic flux.
So, how much should you be charging? Take your market, region, facility, amenities and competition into consideration. Determination of the right rates is only the first step, then it’s essential to qualify your pricing to an increasingly selective customer base. How? With a highly trained and skilled phone person (or team).
Your phone person/team’s job is to take and make as many phone calls as possible, connect with pet parents on an emotional level and demonstrate why your facility is worth the extra cost. If you charge higher rates, the phone call is your platform to justify them to the client and convince them you’re worth the extra cost. If you don’t, they’ll turn to your competitors. It’s necessary to arm your phone person/team with compelling information to help prospective customers visualize and understand what their pets will receive in your care, and why your business is better than your competitors’.
When properly trained and prepared, phone people can be revenue rainmakers. There is so much untapped opportunity on the phones in this industry, and for many it’s a primary key to success. But the rest of your staff matters, too—especially your managers.
It’s impossible to provide amazing pet and customer care without dedicated, well-trained, accountable employees and an effective management team. In this industry, managers tend to earn their positions by providing fantastic care to the pets and their pet parents; however, they rarely receive management training.
The job market is still somewhat active, but significantly slower than it was last year. It’s a major challenge to find people with management experience. Chances are your existing managers already have what it takes—they just need appropriate guidance and training to truly shine. Consider putting your leads, supervisors and managers through specific management skills training.
The goal is to create a hospitable environment for career-minded employees. These are the people who are likely to propel your company to success, even in uncertain economic times. Establishing a solid management structure can significantly improve the strength of your business, leading to smoother operations, high employee morale and better customer service.
A helpful first consideration is to review career growth opportunities within your business. To spread duties, boost accountability and give employees a track upward in your company, consider implementing more roles, such as Senior Pet Care Technician and Pet Care Supervisor. Doing so can increase motivation, employee longevity and foster a positive work environment, ultimately leading to more satisfied customers.
At the end of the day, the challenges of a “trapped in place” economy require adaptability and proactive, strategic action to overcome. By successfully implementing overlooked opportunities such as appropriate pricing, differentiating yourself on the phone and a great management team, your business can thrive, even in today’s economy.
Laura Laaman is president of Outstanding Pet Care. Outstanding Pet Care’s Revenue Building Services and Absentee Owner Program provide the tools to help pet care business owners thrive. If you’re interested in a healthier and more rewarding business, schedule a consultation by calling 1-888-836-8740 or visiting www.outstandingpetcare.com/contact.