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The UK veterinary business: an ever-changing market
Nitzan Kroter
http://comparevetdrugs.com
The UK veterinary business: an ever-changing market. Whois benefiting from the UK veterinary drug market
Traditionally, the Prescription Only Medications (PMO), were supplied to thepublic by veterinary practices only. In October 2001 the competition commissionwere asked to investigate the supply of POMs within the UK. This was to try andevaluate the situation of monopoly and to see if competition could beencouraged, so that the public will benefit from a fair trade.
The competition commission took the view that continuation of theanti-competitive conducts is not necessarily delivering public safety andanimal welfare, nor that these conducts provide the most economic pathway, andthat alternative sources of supply able to offer effective competition to theveterinary surgeons.
The competition commission had a period of consultation, and finallydecided to open the veterinary drug market, so the public will not have to facea monopoly, and hopefully enjoy healthy competition. This practice started inOctober 2005, where new regulations were imposed on veterinary practices, andveterinary pharmacies to enable the public enjoying this new era ofcompetition.
The new regulations resulted in a new market of veterinarypharmacies and particularly Internet Veterinary Pharmacies. Many predicted thatit would not be a growing market and as one can see today, those were wrong.The new veterinary drug market is becoming larger and larger, and as the publicawareness progresses, the veterinary drug market becomes more and moresubstantial. Clients who need medications for their pets enjoy up to 50 & even 60% discount due to lower overheads of the veterinary pharmacies. It isestimated that in the next few years the market will be tripled.
It seems that the veterinary market isfacing a great transition. From the safe, small, monopolised, comfortable andprofitable business, it becomes a normal business model. There is increase intrend of normal business opportunists taking over veterinary practices. Vetshave to adapt swiftly. Those, who do not shape up, find themselves sellingtheir business to corporates, and to those who are able to blend with the newlyshaped market. The marketing strategies are ever changing and becomingaggressive as a normal business. Price awareness is brought into the publiceyes and these are responding very well.
The vast changes in the veterinary market as a whole and theveterinary drug market in particular, resulted in several new businessopportunities, most of which are the veterinary pharmacies. Since the public isresponding to these changes with great enthusiasm, it is inevitable that theywill seek for better and better deals.
One of the ways to channel the public effortfor a better deal in the veterinary drug market is price comparison website forveterinary drugs. Unlike other price comparison sites, www.comparevetdrugs.com isthe first site that dedicates itself to the animal market.
At this stage the veterinary practices are still charging highercharges for their drugs, due to their vast overheads. The loss of business doesnot seem to be substantial at this stage. This is either due to earlyadaptation of fees by the veterinary practices or due to areas in the UK thatpublic awareness is still sluggish.
It is most likely that this will soon change, and it will beinteresting to see how the loss of business will shift itself. It is suspectedthat the veterinary practices may have to reduce their mark-up and compensatefor it by increasing their professional fees. Another scenario would be, thatthe veterinary practices would give up some of their vast drug market (about25%) to the Internet pharmacies. Again the veterinary practices will have tocompensate for this by increasing their professional fees.
Traditionally, the public is accustomed to relatively lowprofessional fees and high drug bills, a phenomena that is to, facing a rapidchange. The public does not seem to perceive this change very well, and even disheartenedby it (so much for trying and help the public).
Unfortunately, the public is not really gaining from the recentchange in the regulations, as it is only shifting cost allocations for theaverage veterinary bill. This situation makes it even more important to watchfor the penny. Like other markets such as car insurance, gas & electricity,comparing the market for prices is becoming a norm or even a necessity. Indeed,the first price comparison website for veterinary drugs have emerged recently ( www.comparevetdrugs.com)and it feels that this would be the future for the veterinary market as well.Many veterinary practices did not wish for this day to come, when the vets willhave to be a punctual business managers fighting their day through marketingand price issues. In a way, I can see liberation for the vets as they areprobably not going to be able to cope with these rapid changes, and will haveto let others to deal with the business part of the day, and become vets only.With the optimism in the air, I can also see how the internet veterinarypharmacies will sale drugs, the price comparison web sites, like www.comparevetdrugs.com willsearch for the best deal, the vets will treat animals and the public, hopefullywill get a better deal.
NITZAN KROTER
BVSC, MRCVS
Article submitted Saturday, July 05, 2008
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