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Introduces the new Profitcalc button for Services and Product-based businesses

Get the most from your new software

Shows how to make the switch to 4.0 from version 3.0, 3.1 or 3.2

There is more than one clinic who has admitted they determine their pricing by secretly calling the other clinics in town to find out what they charge!!

Catch up with all the latest information from Fee Technology

Dear Valued Member,

Thank you for joining us – we are very excited to welcome you as a Member to our “ Business Care Package”. Our goal is to make this a valuable resource to you in the future. We are planning to provide a good selection of articles and tips whether directly related to the software or perhaps general information on maintaining a healthy practice. Most importantly, we hope this helps your clinic in the important task of judicious pricing.

We hope to count on your involvement also - we have a Letters to the Editor section in case there are specific articles you would like to see in our future newsletters. Also next month we do hope to get our blogging area set up, that will provide a useful forum for you to communicate questions or share information with each other.

We look forward to having you as a Member!

Sincerely,

Dan Zalta

President and Founder

Fee Technology

We are always very happy to hear back from our clinics to hear how you have benefitted from Profit Solver. Here is one very nice example -

“ We would like you to know that Profit Solver has been an unimaginably important tool in the turnaround of our practice.

For the period January 09-March 09, we had a margin of 8.9%, compared to a negative 5.8% margin (ugh) in the same period last year! In March 09, we had a margin of 12.8%. In March ’08, we had a negative 5.3% margin. We targeted a 12% margin in our work with Profit Solver. Additionally, we did a long-overdue, badly-needed overhaul of our entire fee schedule, because once we drilled down into it, we discovered many outdated fees that did not accurately reflect the quality of care we are currently providing to our clients.

As I think you may know, we are a nonprofit organization, and this difference in making our hospital financially solvent saved our Shelter, enabling us to continue to do our charitable work saving critical-needs animals. In 2008, our shelter rescued, rehabilitated and adopted out 25% more animals than in 2007. We did not reduce our Shelter staff or compromise our life-saving efforts and charitable mission.

I continue to recommend Profit Solver to my colleagues – the veterinary industry needs this tool”

With thanks and warm regards..

Profit Solver 4.0 is finally here!!

By now you should have received the latest version 4.0 . Check it out soon because the new improved features is designed to make data entry and the processing of information both time-saving and efficient for you.

At the bottom of this page , refer to the HOW TO section showing how to make the switch if you are a previous 3.0, 3.1 or 3.2 user ; there is another link which also explains how to use the new features of 4.0 . Probably the most anticipated and requested feature we’re happy to deliver is the Profit-Calc button. This will now automatically calculate the profit of your current price whether service or product based. As you know this is an important process in using the reports, and this part will be very easy for you now.

Again, please refer to the HOW TO section which shows when to use the Service or Product based Profit-Calc button.

Profit Solver awarded Patent!

We are pleased to announce that the technology behind Profit Solver has been awarded a US Patent. Granted by the U.S. Patent and Trademark Office, only to inventions that have passed rigid tests for uniqueness and usefulness, the patent covers Fee Technolgy’s “Systems and Methods for determining labor, fees and profits!”

Patent No: US 7,742,957

Understanding Costs of Goods Sold

In Profit Solver costs of goods sold is anything that you want to track like inventory, outside services, and specialists.

Inventory is a cost that is applied to each service with a markup to provide profit above cost. When you purchase inventory the cost is tracked through Profit Solver through the inventory module. The inventory and profit on inventory is recorded and tracked when used in a service in the inventory reference area.

Outside services are recorded as a cost in the inventory module. Outside Services are like inventory in one respect in which you receive an invoice (cost) that you pass along to the client with a markup. This cost is tracked to make sure you pass it along to the client. Outside services are tracked when used in a service in the inventory reference area.

EX: When hiring a doctor who gives you a specific invoice for a client you enter the cost of the invoice in the inventory module. To track and pass this cost along to the specific client you add it as an item in the service in the inventory reference area. If you have a doctor who charges you for time not tracked for any specific client he is an overhead expense unless paid through payroll.

The inventory module is actually a separate profit center used to track items like inventory and outside and then pass that cost on to the client.

Valuing the owner in Profit Solver

When considering a value of a doctor (when he’s working as a veterinarian), it depends on his production level. The more you produce the more you get paid.

If you ask a doctor who has 18 years of experience if he is worth more than a veterinarian fresh out of school, he will say of course. The reason is, he can do things faster, he knows things by rote, he is more productive. He can produce more in a day than a doctor just out of school. In each industry the more you get paid the more skillful you should be. To hold things consistent, all doctors must be valued the same, based on productivity. As you get more skillful and you produce more, the more money you will make.

In my observation in the veterinary market there are two productivity contracts. One is based on 22 1/2 percent and the other on 25 percent . If you produce $450,000 in revenue, based on a 22 1/2% production contract, your income would be $100,000. If you produce $400,000 in revenue, 25% of production is $100,000 in wages. When valuing yourself as an owner your time can be split between being a vet and being a manager. Profit can be distorted if the owner undervalues himself or overvalues himself.

If the owner pays himself 250000 in wages and based on production of $400,000 was valued at $100,000 as a vet, then $150,000 was distributed from profit into his wages. . In this case there should have been less expense shown and profit is actually more than what is on the P&L. This overage of 150,000 should be allocated between management and profit.

Conversely, if the owner undervalued himself and to replace him you would incur more of an expense, then there should have been more expense shown and profit is actually less than what is on the P&L.

The value of the owner placed in profit solver should be based on production so that their labor rate reflects a productivity level and not what was distributed to them.