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.