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December 2009
by Volume: 10-8 Page: 26 Subject: stable management Format: article Question: Marking Up Services How does everyone feel about marking up services that are rendered to horses in your care? I have a small training facility and I do a lot of problem-solving work that typically ends up requiring professional services. Typically, I pay for these services out of pocket and bill to the owner. But, I feel that since I pay out of pocket I should bear some additional compensation. I also feel that I did the work figuring out what the horse needs and have a pretty good success rate of rehabbing them and should be compensated for the work that I did figuring it out, as well as the time involved for the treatment. Should I be compensated? —Deann, Finding Out Website ANSWER #1—NO WAY When I first read this month’s question, my reaction was a resounding, “No!” If it were known by your clients and the community that you were marking up prices, an unsavory reputation would be associated with you and your facility. Second, people give you their business because they trust in your ability to maintain a high standard of professionalism and to steer them in the right direction. Unless compensation for a professional opinion is negotiated ahead of time, it would not be good business practice to charge-up someone’s bill after the fact. But, since you do provide this professional service and deserve compensation for it, adjusting your overall rate by 10 percent might make sense. There will be times when a client doesn’t receive this service and other times when they’ll need it daily, so they pay knowing that you will be available. —June Scholl, Flying Solo Farm ANSWER #2—CHARGE HOURLY RATES Since you’ve already found that owners take offense at your mark up of other professionals’ services (veterinary, chiropractic, dental, etc), I think there’s a better way to be compensated for the time and work you put in. Besides, since you aren’t the professional who delivers those services, marking them up is not appropriate. Instead, why not either add a charge (hourly or flat rate) for “veterinary assistance” to cover holding the horse, being there and consulting with the professional, etc. The same rate can be applied for after treatments, such as wrapping, hand walking, special exercises, etc. Or, simply raise your monthly training fee to cover the time you put into problem-solving, consultation and other rehab efforts. —SEH, Finding Out Website ANSWER #3—CHARGE FOR YOUR TIME We used to do all that fun stuff, like pay the farriers and vets, buy extra supplements, hold horses. You know what happened? I would waste four to five hours a day getting horses, holding horses and having to wait up to 60 days to get paid for services. We couldn’t afford to do it anymore. Now it is in our boarding contract that if I have to pay for a vet call or a farrier call up front, it’s $25 plus 10 percent of the bill. If I have to go to the pasture to get a horse and hold it for shoeing, it’s $15 for a trim, $25 for shoeing. If the customer refuses to pay me these extra fees, per our contract, fine, I eat it once. After that they have to make all of their own arrangements. Ninety-nine percent of our customers agreed with this. The one or two that didn’t were also the ones that took full advantage of us in the past. —Bob Cloonan, Victoria Farms ANSWER #4—A MATTER OF TRUST I do not charge for consultation, quick lameness exams, or quick medical care. In the board contract I actually write out that this type of consultation service is included in the board. I do charge $15 per hour for holding/assisting, medical treatment, grooming, etc. (except for horses in full training). When I do charge for these services they are a separate entry on the bill. I charge enough for board and training that I feel the time I spend consulting and billing is paid for. Plus if I charged for consulting, my clients would be very hesitant to come to me for advice, which would be terrible. It’s a matter of two-way trust, which will make or break a farm. —Tiffany, River Ridge Stables Click Here To Order Back to this issue
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