In today's episode I'm joined by VetBilling's founder Tony Ferraro. We talk about the founding of VetBilling and what they do. As well as the following:
- How third party financing can be more rigid in the offering. Tony mentions a 40% approval rate, so what about the other 60%? I did push for some data behind this number and here is the reference source.
- The typical delinquency of clients on payment plans being 3%-5%, but can reach closer to 10%-15% and why even at the elevated level it still makes sense.
- How to construct a payment plan and the down-payment, payment length, and details. How VetBilling allows for more control at the clinic level than third party financing.
- Understanding your cost per minute as a method for a down-payment.
- Cost Per Minute = Expenses + Cost of Goods Sold / Minutes open per year - $2 - $10 per minute is the wide range for practices.
- We review case studies and the amount of care that can increase as well as the dramatic revenue increase. One case study added 707 new clients in a year while adding $413K in revenue.
- The training and marketing that must be done to do this effectively.
- The trends in the industry and why something "boring" like a payment plan can help fund other reinvestment opportunities.
- Finally, the goal for payment plans should only make up about 10%-20% of outstanding accounts receivable not the majority of revenue.