Overview

A leading U.S. veterinary hospital group sought to modernize its service pricing strategy across 17 regional facilities. Historically, pricing had been adjusted using broad, uniform increases. The organization wanted to shift toward a value-based pricing model; one that reflected true service value, competitive positioning, and local market dynamics.

Challenge

The veterinary hospital network faced growing pressure to improve financial performance while maintaining competitiveness and patient access.
Key issues included:

• Inconsistent and outdated pricing across locations
• Lack of differentiation between high- and low-contribution services
• Limited visibility into competitor benchmarks
• Need to uncover revenue uplift opportunities without eroding patient trust

Approach

Our team applied a structured Strategic Value-Based Pricing Framework to realign prices across the network.

• Conducted focus groups across the US with pet owners
• Segmented over 50 top-revenue service categories by value, volume, and contribution
• Conducted a competitive pricing analysis across national and regional markets
• Identified core, secondary, and tertiary service tiers to tailor pricing strategy

Solution

We built comprehensive price sheets and revenue models for each facility, aligning pricing adjustments with contribution levels and market position.

• Introduced selective price adjustments based on strategic importance
• Rationalized low-volume services using Pareto analysis (80/20 rule)
• Categorized offerings from strategic to commodity to clarify value communication

Results

• Delivered 17 hospital-specific pricing frameworks with consistent methodology
• Identified measurable revenue lift opportunities through optimized price alignment
• Provided management with a revenue impact model showing before-and-after scenarios
• Equipped leadership with a repeatable pricing process grounded in value and market data

Impact

The new pricing strategy transformed how the network viewed and managed its services, from cost-based adjustments to data-driven, value-based decisions.
By linking price to service value and market realities, the organization unlocked new revenue potential while reinforcing its reputation for quality care.