Economic indicators look good

We’ve all seen stories in our local newspapers and TV news about the growing number of animals to be found in pet shelters, their owners unable or unwilling to finance their upkeep in these tough economic times. That’s unfortunate, to be sure. But there is, in the words of the late Paul Harvey, “another side of the story.”

Perhaps you saw the writeup of an AP/Petside poll, released June 23, about American pet owners’ view of their animals. About half of those surveyed (approximately 1,100 pet owners) said they consider their pets to be as much a part of the family as any person in the household. A sizable portion, for example, allow their animals to sleep in bed with them, eat what they eat, go on vacations with them, and pose for the family holiday portrait.

The pollsters did not ask about healthcare, but one can surmise that a good portion of those surveyed would insist on the very best care for their animals. Indeed, an online comment to the story from “Rob and Sue” pretty much says it all: “my wife and I have two cats and two dogs, they are like our children and we treat them as such. We too would spend every dime I had for my pets health and safty.”

The 2009 Veterinary Survey by William Blair & Co., which we report on in this month’s issue, offers more data that should convince Vet-Advantage readers that the industry in which we find ourselves is indeed a strong one. Of roughly 1,000 veterinary professionals surveyed at this year’s North American Veterinary Conference, 46 percent reported that pet owner spending had declined in 2008, but 43 percent said that spending either remained steady or increased over previous reporting periods. At first glance, those numbers might seem gloomy, but considering the state of the economy, they prove that, as in past recessions, the veterinary industry outpaces most others.

Other indicators bode well for the business as well. For example, the Blair survey indicates that spending on wellness and on diagnostic testing is expected to increase. That’s good news for sales reps. And as our article on pet insurance indicates, all signs point to an increase in insurance coverage and an accompanying increase in care. That can’t be bad for distributor sales reps either.

We have reason to be optimistic. But not complacent. Sales reps and their companies need to pay attention to changes in the industry. For example, it’s likely that practices will continue to grow larger. (The Blair survey seems to bear this out.) Perhaps you’ll encounter more “economic buyers” than you have in the past. That means that the kinds of relationships you build, and the people with whom you build them, may shift.

And as Blair points out, the data indicates that while this industry is recession-resistant, it is not recession-proof. This means that veterinarians, and their clients as well, will insist on cost-effective solutions to patient care. And, if clients are spending more money on the care of their pets, they’ll expect better quality than ever before. The bar will be raised, and those who are willing to jump it can expect prosperity.