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Does Vetcove put margin pressure on distribution?
Does Vetcove put margin pressure on distribution?
Updated over a week ago

We hear this concern a lot, and the short answer is no.

Although for a small percentage of products price variation is a factor in customer decisions, the vast majority of dollars spent are on "fixed-price" products that are the same price across distributors.  This means that for the lion's share of dollars spent, price is never a factor.  Even for items that are not price-locked, our quantitative analyses show that price is only a factor when price variations are substantial—which is fairly uncommon.  

We do recognize that there is a very small percentage of customers that base each and every decision on small price variations.  We understand that these customers, while rare, can be frustrating to work with.  Fortunately, we've found that less than 10% of the Vetcove user-base shops this way.  Most practices truly value the relationships they have with distribution.  As such, you're probably not surprised to hear that very frequently our customers knowingly buy items from their preferred vendors when a lower priced item is available elsewhere, solely to support these relationships.  

Looking at the veterinary supply industry holistically, while Vetcove processes a large volume of dollars, the fact that Vetcove does not negotiate pricing means that our financial impact on the supply chain is minimal.  Comparatively, consolidation among veterinary manufacturers, hospital groups, and group purchasing organizations are having a much more substantial impact on supply chain margins than Vetcove ever could.

If you have questions or concerns, contact us at support@vetcove.com, and we'll get right back to you.

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