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Frameworks, core principles and top case studies for SaaS pricing, learnt and refined over 28+ years of SaaS-monetization experience.
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In the competitive landscape of veterinary software, choosing the right pricing model can make or break your SaaS business. For companies serving veterinary clinics, the question isn't just about setting prices—it's about aligning your pricing strategy with how your customers actually derive value from your solution. Should you charge per veterinarian using the system, per patient visit, or based on the outcomes your software helps achieve?
Let's explore the three primary pricing metrics for veterinary clinics SaaS and determine which approach might work best for your specific solution.
Understanding the Veterinary SaaS Market
Veterinary clinics operate in a unique environment with specific challenges:
- High variability in clinic sizes (from solo practitioners to multi-location enterprises)
- Seasonal fluctuations in patient volume
- Mix of routine care and emergency services
- Increasing demand for telemedicine and remote monitoring
- Growing emphasis on business efficiency and profitability
Any pricing strategy for veterinary clinics SaaS must account for these realities while providing predictable revenue for the SaaS provider.
Per Seat Pricing: The Traditional Approach
Per seat (or per user) pricing charges veterinary clinics based on the number of staff members who need access to the software.
Advantages:
- Simplicity: Easy to understand and implement
- Predictable revenue: Monthly recurring revenue scales with clinic size
- Clear enterprise pricing tiers: Larger clinics naturally pay more as they add users
Disadvantages:
- May discourage adoption: Clinics might limit software access to avoid additional costs
- Disconnected from value creation: A receptionist and a veterinary surgeon might have the same "seat cost" but generate vastly different value
- Difficult to scale with small-to-medium clinics: Single-vet or small practices may find per-user costs prohibitive
According to a 2022 survey by Software Path, 64% of veterinary software vendors use some form of per-user pricing, making it the most common model in the industry.
Per Transaction Pricing: The Usage-Based Model
Per transaction pricing ties costs directly to software usage—typically charging based on patient appointments, invoices generated, or procedures logged.
Advantages:
- Aligned with business volume: Costs scale with clinic activity
- Lower barrier to entry: Small clinics pay only for what they use
- Flexible during slow seasons: Costs naturally decrease during quiet periods
Disadvantages:
- Revenue unpredictability: Your SaaS revenue fluctuates with customers' business cycles
- Complex price fences: May require sophisticated rules to prevent gaming the system
- Difficult forecasting for customers: Clinics may struggle to budget for variable costs
"Usage-based pricing has grown in popularity, with adoption among SaaS companies increasing from 23% in 2014 to 45% in 2021," reports OpenView Partners' SaaS Pricing Survey, reflecting a broader industry shift that's now reaching veterinary software.
Per Outcome Pricing: The Value-Based Approach
The most advanced model, outcome-based pricing, charges based on measurable results the software helps achieve—like increased client retention, reduced no-shows, or revenue growth.
Advantages:
- Perfect value alignment: Customers pay based on actual results
- Compelling ROI story: Easy to justify investment when tied to outcomes
- Partnership mentality: Creates shared success between vendor and clinic
Disadvantages:
- Implementation complexity: Requires sophisticated tracking and analytics
- Attribution challenges: Difficult to isolate software's contribution to outcomes
- Longer sales cycles: More complex pricing requires additional education
While only about 17% of veterinary SaaS companies currently use true outcome-based pricing according to Veterinary Innovation Council data, this approach is gaining traction among premium solutions.
Finding Your Optimal Pricing Metric
The ideal pricing metric for your veterinary clinics SaaS depends on several factors:
1. Software Type and Core Functionality
- Practice management systems: Often work best with hybrid models combining per-seat base pricing with transaction-based components
- Specialized diagnostic tools: May perform better with per-use or outcome-based pricing
- Communication platforms: Typically favor per-seat or tiered pricing
2. Customer Segments
Different clinic types may respond better to different pricing models:
- Enterprise veterinary chains: Often prefer predictable per-seat pricing with volume discounts
- Emergency clinics: May benefit from transaction-based pricing that aligns with their variable caseload
- Specialty practices: Often value outcome-based pricing tied to their specific metrics
3. Value Creation Mechanism
How does your software actually create value?
- If value comes from coordination among staff → Per seat makes sense
- If value comes from handling client interactions → Transaction-based approach fits
- If value comes from improving specific metrics → Outcome-based model aligns best
Best Practices for Veterinary SaaS Pricing Strategy
Regardless of which metric you choose, consider these proven approaches:
Implement Strategic Price Fences
Create boundaries that segment customers appropriately:
- Feature-based tiers (Basic/Pro/Enterprise)
- Usage limits within each pricing level
- Add-on modules for specialty functions
Thoughtful Discounting
Discounting can drive adoption without devaluing your solution:
- Annual prepayment discounts (10-20% is standard)
- Multi-location discounts for growing practices
- Limited-time promotional pricing for new features
Hybrid Models Often Win
Many successful veterinary SaaS companies employ hybrid pricing models:
- Base subscription per location + per-vet fees
- Core platform subscription + transaction fees for payments
- Tiered pricing with outcome-based incentives
According to Veterinary Practice News, 72% of veterinary clinics prefer some form of hybrid pricing model that provides both predictability and alignment with their business growth.
Case Study: Success with Value-Based Pricing
VetSuccess, a veterinary analytics platform, shifted from per-clinic pricing to a model based on patient volume with performance incentives. The result? A 47% increase in average contract value and 23% improvement in retention rates.
Their key insight was recognizing that larger practices weren't just using more "seats"—they were processing more data and deriving exponentially more value from pattern recognition across larger patient populations.
The Verdict: Which Model Is Best?
The most successful veterinary SaaS companies are increasingly moving toward hybrid models with these characteristics:
- Base platform fee: Provides access to core functionality (often per location)
- Scaled component: Aligns with clinic size (per provider, per exam room, or patient volume tiers)
- Value accelerators: Optional outcome-based components that create upside for both parties
This approach delivers the predictability of subscription pricing while acknowledging the varying value delivered to different clinic types.
Final Considerations for Your Pricing Strategy
When finalizing your veterinary clinics SaaS pricing metric:
- Test before committing: Run pilot programs with different segments
- Build in flexibility: Your pricing should evolve as your product matures
- Focus on customer success metrics: These will ultimately determine your retention
- Consider competitive positioning: Price relative to alternatives (including manual processes)
- Communicate value clearly: Whatever metric you choose, tie it explicitly to outcomes
The best pricing metric isn't just about maximizing your revenue—it's about creating a framework where customers who get the most value appropriately contribute the most to your business, creating sustainable growth for both parties.
By carefully considering how your software creates value in veterinary practices and aligning your pricing accordingly, you'll build stronger customer relationships and a more resilient SaaS business in this specialized market.