“I didn’t know how much it was going to cost until after the treatment.”
This kind of pet owner insight highlights why transparency in veterinary care is under the spotlight and helps us understand the CMA’s focus on price transparency.
The UK’s Competition and Markets Authority (CMA) recently released a Remedies Working Paper proposing new measures to make vet services more open about prices and options. In summary, the CMA is proposing that small animal vets take a number of measures, such as:
- Clearly display a price list
- Declare if they’re part of a corporate group
- Provide clear treatment options, with prices, in advance
- Offer prescriptions for all medications, and
- Inform owners about potential savings from buying online.
There’s talk of capping or abolishing certain fees (like prescription charges) and ensuring clients understand cremation fees and their alternative options. The proposals are broad and wide-reaching, but they share a theme:
- Greater transparency in pricing and client communication.
For independent practices, this push for transparency might feel daunting. Posting price lists online and encouraging clients to explore alternatives away from the clinic is a big culture shift for some. However, transparency isn’t just a regulatory box to tick - done right, it’s an opportunity to build trust and to help clients feel more confident in their decisions.
The good news is that behavioural science can help improve transparency and strengthen client relationships. Over the next few articles, we’ll share simple tips to apply behavioural science and help you get your clinic CMA-ready.
Is price transparency enough?
Behavioural science tells us that people make decisions based not just on facts, but on how those facts feel. How we present information can dramatically influence the feelings that the information generate. Many of the CMA’s proposed remedies focus on price transparency. The problem with price transparency is that when it’s used in isolation it doesn’t go far enough to help make decision making easier for clients. Price transparency alone doesn’t help a client understand how the fact (the price) makes them feel. And that means that the best path forward doesn’t seem clear to them.
The importance of value transparency
We believe that price transparency should always be paired with “value transparency”. In other words, we should never present a price in isolation. Instead, we should provide it alongside the benefit of the product or service, helping the client understand not just the fact (the price), but also the feeling that comes with it (whether it feels worth it).
Let’s look at an example where a vet is proposing a diagnostic test:
Price transparency in isolation
If they focus only on price transparency, they might say:
“This test costs £80. How does that sound?”
Does this help the client understand how they feel about the price?
No, not at all.
It only communicates the fact of the price. It helps them answer one question only: “Do I want to spend £80?”. It’s human nature that any question that’s framed as “do I want to spend money?” will likely be answered with “No!”.
The client doesn’t have the information they need to work out whether spending the money on the test feels like a good idea.
Value transparency in action
If the vet provides value (as well as price) transparency, then things may sound more like this:
“This test will give us a more detailed picture of Molly’s kidneys. It’ll help us understand if there are any early signs of disease. Knowing that now will help us work out which next step will be most appropriate for her. It’s £80, which also covers a detailed lab report and a follow-up phone call with me to discuss the results and our possible next steps. How does that sound?”
Would this client be in a better position to judge whether the test is something which they want?
Yes, definitely.
They’ve been given not just the fact of the price, but also the context - the value -to help them understand how that price feels to them. That means they can instinctively judge whether or not the test feels like the right choice or not.
Of course, the ‘price transparency in isolation’ example given above is unlikely to happen in such an extreme way in a consultation. As options are discussed it’s likely that aspects of the value will be touched on, at least in some small way.
In our experience though, teams often lack confidence in communicating the value of their recommendations clearly. That can result in avoidable negative perceptions about the price.
Value transparency in price lists
Don’t forget that the principle of value transparency isn’t only valuable in face-to-face interactions with clients. It’s important whenever a price is communicated. That includes websites and price lists. A list of prices with no context is not particularly useful to clients!
Is it worth it?
Put simply, whilst clients need to know the fact of the price that they may have to pay, they also need to know the value to help them decide how to feel about that price – i.e. whether it’s worth it.
Would you like to help your team communicate value and prices more confidently and effectively? Get in touch to explore how our workshops can help your practice get ahead of the CMA curve.