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Managing Your Purchases? Get Out Your Calculator

January 1, 2018

Cost of goods is the highest expense in mixed animal practices, and the second highest expense in companion animal hospitals. Yet, it’s one of the most ambiguous areas of veterinary practice management. Responsible veterinarians who try to manage their cost of goods are often advised to lower their spending. They’re given advice such as, “Your purchases should be 20% of sales every month,” or simply, “You’re buying too much.” However, this advice is almost always given without any veterinary industry data or knowledge of how much is being sold. For a veterinarian who is selling twice the average amount of goods, their cost of goods sold will be twice the average. Read more.