Pet Boarding and Daycare September October 2016

VOL 6 • ED 5

SEPT / OCT 2016

WWW.PETBOARDINGANDDAYCARE.COM

and daycare magazine Profile of Success

THE BARKLEY Pet Hotel & Day Spa

Searching for ideal,

PROFITABLE

CLIENTS? Special insert:

and daycare

EXPO

program

guide

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FROM THE ART DIRECTOR PASSION IN THE PAGES I love checking my mail box. Not my e-mail INBOX, my real–life physical mailbox. It’s a little bit of a walk from the front door of my apartment. Some hauls are more exciting than others. The bills Laura Pennington Art Director

are never very fun to receive. Not all that interested in the reminder postcard from the Dentist either.

Receiving something that I can sit down and page through, however, makes my walk worth the effort. I’ve been a page–flipper for as long as I can remember. When I find catalogs and magazines in my mailbox, I get excited.

Illustration! Photos! Words! Smelly ink! All my favorite things stapled up in one complete package. When you pull this month’s issue out of your mailbox, I hope you are filled with similar enthusiasm.

Are you ever curious about what goes into the magazine you're holding in your hands? Laying out Pet Boarding & Daycare is more than just picking cute dog photos to go with text. It’s a process that involves planning, creativity, resourcefulness, and patience (there are A LOT of cute dog photos out there). The recipe isn’t fully perfected. Ingredients are modified from time–to–time. Perhaps you’ve been with us long enough to witness the evolution of our logo. The one thing that I promise will stay the same is our passion for creating.

We never get tired of the challenge to catch YOUR eye. We want you to dive into the content. We put our all into making information pop right off the pages. Pages that you’ll dog–ear, highlight, underline, and cover in a billion sticky notes! (Am I right office-supply fanatics?)

What I’m trying to say is, a lot of care goes into the creation of each issue. Just as much care as you put into your career in the pet industry. To us, these pages are more than just pages.

STAFF PUBLISHER Barkleigh Productions, Inc. EXECUTIVE EDITOR Rebecca Shipman ART DIRECTOR Laura Pennington GRAPHIC DESIGNER Jenn Barraclough WEB DESIGNERS Lance Williams Luke Dumberth PRESIDENT Todd Shelly CHIEF OPERATIONS OFFICER Adam Lohr DIRECTOR OF MARKETING & CLIENT RELATIONS James Severs MARKETING COORDINATOR Alex Robertson CONTACT General: (717) 691-3388

info@barkleigh.com Editorial: rebecca@barkleigh.com (ext. 225) Advertising: james@barkleigh.com (ext. 224)

Your occupants are more than just animals. As much as you hope you are making a difference in the lives of your guests, we hope our magazine makes a difference in yours.

Copyright September 2016. Pet Boarding & Daycare is published bimonthly by Barkleigh Productions, Inc, 970 West Trindle Road, Mechanicsburg PA 17055.

Postmaster: Send change of address to Pet Boarding & Daycare c/o Barkleigh Productions, Inc., 970 West Trindle Road, Mechanicsburg PA 17055. No part of this publication may be reproduced without written permission of the publisher.

Editorial offices: 970 West Trindle Road, Mechanicsburg PA 17055. (717) 691–3388 FAX (717) 691–3381 Email: info@barkleigh.com

4

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and daycare magazine S EPTEM B E R / O CTO B E R 2 0 1 6

CONTENTS

BUSINESS

I H

28

opefully you’ve finished up a fabulously busy and profitable summer. Since summer is one of the busiest seasons for overnight pet care, you’ve ‘made hay’ and filled the coffers with lots of revenue so you can finish the year financially strong. When done properly, this business can and should be profitable for pet care facility owners.

There is, however, one huge mistake pet care facility owners can make that will derail their long–term success. Before we get to that, let’s review recent and relevant history.

For the longest time, this industry had strong demand and not a lot of supply. Meaning, there were a lot of dog owners looking for safe home– away–from–homes for their dogs when they traveled. Yet, there weren’t a lot of

PROFILE OF SUCCESS:

facilities to provide this valuable service.

Profitability in this business is strongly dependent on high volume.

All things being equal, profitability goes up when a facility is full. Unlike veterinarians that charge more for individual services, pet care facilities charge less per transaction. Therefore, high volume is important.

With the vast number of clients that come through your doors, it’s easy to feel like your business will always have a lot of clients. It’s also understandable that you and your staff treat customers as ‘common’ and not particularly special. Due to the evolution of the now ‘pet parent’, this is a huge mistake most pet care facilities make every day.

Pet parents have now evolved to being highly caring and it shows with the amount of money they are spending on

and daycare

Animal Health

guide

14

8

42

Dog On the Loose! How to Catch Runaway Clients

Business

22

PET BOARDING & DAYCARE

Offering a Health Care Warranty in Your Resort

Versus Starting from Scratch

The Concierge Strategy: Consistently Thrilling Customers at Your Front Desk

46 Top 10 Takeaways from the Annual

Pet Services Financial Survey

52 Product News

52 Classifieds

Facility 36 Interior Alterations with an Eye on Resale

6

20

Industry News

18 5 Benefits of Buying a Pet Care Franchise

their furry best friends.

The average length of stay for pets in your facility is probably a little over 5 nights. If your average cost per night is $30, that means your average stay brings in around $150. Not a lot to get excited about. My firm’s consulting client numbers are more than double the national average. But still, that’s about $300 per stay for five nights. And from a revenue perspective, it’s still not a lot to be jumping up and down about.

With these numbers, it’s pretty easy to not think of customers as special.

Let’s say you had a prospective customer call your company tomorrow and say, “I’m likely going to spend $5,000 on my pet in overnight care and daycare this year and I’m deciding on which facility to choose.” Would you do anything differently than you do today?

EXPO

program

THE BARKLEY PET HOTEL & DAY SPA

Behavior

14

PET BOARDING & DAYCARE

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PET BOARDING & DAYCARE

7

ANIMAL BEHAVIOR

DOG D

on the

LOOSE! LO O HOW TO CATCH RUNAWAY CLIENTS

By Kama Brown

Catching a loose dog is a skill. It’s something that should be taught during staff orientation and practiced regularly for new employees. Just as a bite stick and a can of sound or spray are kept for emergencies, employees should have access to high value treats in a vest pocket.

T

here are four ways a dog becomes loose; the owner allows the dog to get loose coming out of the car, the dog backs out of the collar, the dog won’t come in from the daycare yard, or the dog has gotten out of the kennel.

In all situations, the first time the dog checks in with anyone is the most important moment. Each moment there after will be less and less likely to keep the dog’s attention.

All dogs are going to check in unless

8

they have already focused on something and are chasing it. If a dog is chasing something, always follow the direction the dog is going. Whatever they are chasing is bound to stop as some point, whether it is a car, a person, or a critter.

Once the chase is over, they are going to look around and that will be your moment. Keeping in mind that the moment they are looking around is the moment they are looking for the next thing to hunt.

Gaining their focus by utilizing PET BOARDING & DAYCARE

their hunting instinct is the best option to catching a loose dog. A dog’s brain is designed to tune into movement.

Movement directly in front of them is important but movement in their peripheral vision is always given priority. This means running side to side will get the dog’s attention more than just running forwards or backwards. Never stand still or move towards a dog that is standing still and looking around. Once the dog is watching the moving person, the

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9

CATCH THAT DOG!

1.

2.

FOLLOW THE

DIRECTION

OF THE DOG USE SIDE TO SIDE

RUNNING

TO GAIN THE DOG’S ATTENTION EFFECTIVELY

3.

MAKE NOISE

TURN SLIGHTLY

& BEND TOWARDS

THE GROUND

4.

BEGIN MOVING

TOWARDS A SAFE PLACE

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PET BOARDING & DAYCARE

person should make high-pitched noises, turn slightly away from the dog, and bend down towards the ground.

Once the dog is moving forward, the person should begin moving towards the direction of a safe place, such as through the nearest building door or fenced area. If the nearest building happens to be private property, so be it.

I caught a dog once by propping open a McDonald’s door and enticing the dog with a tray full of trash. When a dog is loose in an unfenced, urban area, everyone is willing to allow for exceptions to the rules in order to gather the dog safely. I’ve found the same to be true in suburban areas when it comes to opening the nearest car door or backyard fence.

If a dog is not chasing something, then they are either hunting for something through scent, or they are baiting a person to chase them. Dogs who are hunting for something will trot to a spot, sniff, trot to another spot, sniff and repeat. The dog’s back is towards the human and they are usually following their nose—head towards the ground.

Dogs who are baiting a human to play a chase game will trot around and stop periodically to stand facing towards the human, eyes directly following the human’s movements.

Many times bouncy movements and barking will accompany this behavior.

If the dog is loose in the parking lot and they are close to cars, opening any car door and saying “let’s go” is the first thing to try. Secondly, call the dog while walking towards the building door. Using high pitched, quick, short sounds will entice movement from dogs and the direction you are walking will matter. Always walk the direction you want the dog to go. Do not chase the dog unless the dog is clearly chasing something else already.

Part of the protocol for catching a loose dog should include some way to communicate to the other

Novelty is interesting to dogs and a change in the environment will generally trigger a sniff. If the dog begins sniffing a standing person, they should begin slowly walking towards the closest confined space, dropping treats if they have them.

employees that you need them to come and help. If the dog has gotten away while on the way inside the building, ask the help to safely stand or sit down on the perimeter of the parking lot.

Novelty is interesting to dogs and a change in the environment will generally trigger a sniff. If the dog begins sniffing a standing person, they should begin slowly walking towards the closest confined space, dropping treats if they have

them. After a few steps, the person should turn slightly away from the dog and bend down, pretending to look at something on the ground, and dropping treats in a pile if they have one, or dropping whatever they have on their body if they don’t have treats. Novelty creates curiosity and suspicion which will get a dog to do things they didn’t intend to do, such as stop and stay still long enough for the employee to grab the dog’s body.

To prevent bites, it’s always better to invite or entice the dog to become interested in something new so that a person may move slowly enough to

reach out and grab hold of the dog.

If the dog is wearing a collar, that is an easy place to grab, though a leg or tail will work in an emergency. Once the dog is held in position, putting a leash or slip lead on will be easy. If the dog can see the leash or slip lead while you are trying to entice them, it will usually cue the dog to stay a few feet back.

In all loose dog situations, bringing out another dog on lead can help. Bringing out another dog captures into their social behavior.

Walking, trotting, playing tug, giving treats, and talking to the new dog will

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PET BOARDING & DAYCARE

bring the loose dog closer. Once the loose dog is interested in the new dog, make sure to keep the new dog moving towards a secure space. It’s always easier to bring a dog into a confined space than it is to catch them directly.

If the dog is running loose but confined in the yard or building, the urgency is less and only one person is needed to entice the dog. Anyone else available should double check that all doors and gates are secured. Often, dogs that don’t want to come inside when group play is done will begin baiting the human in the yard to play the chase me game. Sitting or lying down on the ground will usually do the trick. If the dog ignores this, walking over towards an exit and pretending to open the gate will bring the dog closer in. If the dog still won’t budge, bring out a flirt toy.

A flirt toy is a horse lunge whip with a synthetic furry animal on the end of it. Flirt the toy around so that it looks like an animal scurrying along the ground until the dog gets close enough to bite and grab the toy. Once the dog is willing to follow the toy, lead them into a smaller space or inside.

All of this to say, by far the easiest way to catch a loose dog is to keep them from becoming loose. A building should be secure enough that once an owner has successfully handed their dog over to an employee, the dog is never able to get out. Doors and gates should be doubled and windows should be kept locked. Outdoor areas should be secured with fencing that continues underground and tops of fencing should be secured by having roller bars in place. The fence line should be walked each morning and evening to spot any beginning holes or fence damage early.

All kennels and daycares have unbelievable escape stories despite the best of efforts, but with the correct procedures, all kennels and daycares will have incredible catch stories as well. n

PET BOARDING & DAYCARE

13

BUSINESS

I

By Laura Laaman

H

opefully you’ve finished up a fabulously busy and profitable summer. Since summer is one of the busiest seasons for overnight pet care, you’ve ‘made hay’ and filled the coffers with lots of revenue so you can finish the year financially strong. When done properly, this business can and should be profitable for pet care facility owners.

There is, however, one huge mistake pet care facility owners can make that will derail their long–term success. Before we get to that, let’s review recent and relevant history.

For the longest time, this industry had strong demand and not a lot of supply. Meaning, there were a lot of dog owners looking for safe home– away–from–homes for their dogs when they traveled. Yet, there weren’t a lot of

14

facilities to provide this valuable service.

Profitability in this business is strongly dependent on high volume.

All things being equal, profitability goes up when a facility is full. Unlike veterinarians that charge more for individual services, pet care facilities charge less per transaction. Therefore, high volume is important.

With the vast number of clients that come through your doors, it’s easy to feel like your business will always have a lot of clients. It’s also understandable that you and your staff treat customers as ‘common’ and not particularly special. Due to the evolution of the now ‘pet parent’, this is a huge mistake most pet care facilities make every day.

Pet parents have now evolved to being highly caring and it shows with the amount of money they are spending on

PET BOARDING & DAYCARE

their furry best friends.

The average length of stay for pets in your facility is probably a little over 5 nights. If your average cost per night is $30, that means your average stay brings in around $150. Not a lot to get excited about. My firm’s consulting client numbers are more than double the national average. But still, that’s about $300 per stay for five nights. And from a revenue perspective, it’s still not a lot to be jumping up and down about.

With these numbers, it’s pretty easy to not think of customers as special.

Let’s say you had a prospective customer call your company tomorrow and say, “I’m likely going to spend $5,000 on my pet in overnight care and daycare this year and I’m deciding on which facility to choose.” Would you do anything differently than you do today?

Call us Today to Schedule a FREE, Private Consultation.

Serious

REVENUE GROWTH

for Serious Business Owners.

This is a rapidly changing and highly competitive industry. OUTSTANDING PET CARE is the authority in producing exceptional results for their clients. Our consulting and training firm helps pet care facility owners realize the revenues they deserve.

SOME OF OUR MANY SERVICES INCLUDE: Constant support guaranteed to grow your business

Exclusive meetings with the top pet care facility owners in the world

Marketing & pricing guidance

Phone training

“Hiring Laura and the OPC team was a pivotal defining moment for our business. In our first year with OPC, we increased $330,000 over our previous year.”

– Hailey Seidel, Bow Dog Canine Specialists

OUTSTANDING PET CARE UNPARALLELED SUCCESS, GUARANTEED GROWTH.

1-888-735-5667 www.OutstandingPetCare.com

How important is a single phone call to your business?

Lodging Revenue per Pet per Night (with activities) Lodging Revenue per Visit

5 $

Visits per year

Lodging Revenue per Pet per Year

Hard to imagine a single $5,000 in a year? Consider

Grooming Revenue per Year

the following example:

65

Lodging Nights per Visit

Grooming Revenue per Visit

client would spend over

$

Grooming Visits per Year

I anticipate and hope you would. Hard to imagine a single client would spend over $5,000 in a year? Consider the example illustrated above.

Even if your prices are different or the client doesn’t participate in every service, they could still easily be spending thousands. So now that we agree certain clients can be especially valuable, how do we identify and capture them? Step one is to identify what clients are interested in when

$

325 3

975

50 6 $ 300 $

they first come to you. This can be done verbally or in writing. It would be especially helpful if you had a great trained person or people on the phone who could confidently ask how many times per year or days per week they will likely use your services.

Step two is to have a meeting with new clients to better understand their pet and the pet’s current needs, including exercise, behavioral issues, and/or any health issues. I’m not

Training Package

$

1,500

Daycare Revenue per Visit

$

Daycare Visits per Week Daycare Revenue per Year

TOTAL REVENUES PER YEAR 2 PETS

$ $

25

2.5 $

3,250

6,025

12,050

suggesting you offer medical advice, but some health issues may be important for you to understand and possibly adapt your overnight or daycare services. Often the most sensitive and needy pets can translate into the most rewarding clients. They realize their pets require extra special care that very few other places could offer.

Step three is to circle back with your clients from time to time. Revisit what you’ve discussed and see if there are any changes that have come up or are anticipated.

If this seems uncommon and like a lot of work, it is. But just as this industry has evolved, so will smart business owners. I’m not suggesting you can do this with every client, but wouldn’t it be great if you could? The initial intake process can help you identify your ideal clients. Making them feel truly special and not like a common occurrence will help propel your success. n If you’re interested in taking your revenues to new heights, contact Laura Laaman and her team at Outstanding Pet Care at 1-888-735-5667 for a private consultation.

16

PET BOARDING & DAYCARE

PET BOARDING & DAYCARE

17

OF

A PET CARE

FRANCHISE VERSUS STARTING FROM SCRATCH

By Jason and Steven Parker

18

PET BOARDING & DAYCARE

Making the transition from pet lover to pet care pro can be rewarding, but it can also be daunting. For those looking to get into the pet boarding and daycare industry, buying into an already successful franchise can offer a jump-start toward business ownership.

THE ROAD MAP TO SUCCESS HAS ALREADY BEEN DEVELOPED. Any good business owner will have already experienced roadblocks and found ways to work through the kinks in order to produce the most successful results possible.

THE FRANCHISOR WILL WALK YOU THROUGH EVERY STEP OF THE WAY, even if you don’t have any experience.

Franchises have training programs designed to bring new franchise owners up to speed on the most successful methods to running the business.

They’ll assist you with finding the best real estate, selecting the right construction contractors, and they’ll be there for you in any situation that comes up down the road.

YOUR NEW BUSINESS WILL COME WITH A TRUSTED BRAND NAME. One of the biggest advantages of franchising is that the company is building its brand on a regional and national basis. That means value is already built-in for customers the moment your doors open.

A GOOD FRANCHISE WILL TAKE ADVANTAGE OF THE BUYING POWER OF THE ENTIRE SYSTEM in order to negotiate prices for everything you need

at a significantly lower level than you could achieve as an independent operator.

This not only applies to initial furniture and equipment purchases, but also to supplies, inventory, uniforms, and other items you’ll need on an ongoing basis FINALLY, BUT PERHAPS MOST IMPORTANTLY, IS RISK AVOIDANCE. A franchise business model has already been proven, and you can determine with a fair amount of certainty what will happen if you become a new franchisee. n

Jason and Steven Parker are the CoFounders of K-9 Resorts Daycare and Luxury Hotel. K-9 Resorts spent years establishing and perfecting the brand as a franchise. Since then, K-9 Resorts has been rated as the number 1 dog care facility by numerous publications, and just this year, the brand has partnered with private equity firm Navigator Partners, LLC for a multi-million dollar investment to continue fueling the brand’s expansion throughout the U.S. To learn more about K-9 Resorts Daycare & Luxury Hotel and potential franchise opportunities, visit www.k9franchise.com.

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C2002

Consider these five benefits a pet care franchise system can offer, and you’ll be on your way to a new career.

19

new! for

Extended Design Program Debuting at

2016

and daycare

EXPO

November 13 - 16, 2016

If you’re thinking about opening your own facility, adding an additional location, or are even renovating an existing, outdated building, you need to attend Pet Boarding & Daycare Expo East 2016!

Our new extended design program has so much to offer anyone who is “taking the plunge” of branching out on their own. A whole additional day of education is being offered to cover every aspect of this tedious, and likely stressful process. Get all of your questions answered by industry experts and come away from the expo with a game plan to get your dream up and running!

The program begins with seminars on creating a business plan, funding, and identifying common roadblocks. The next two days are filled with industry expert speakers covering the design

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PET BOARDING & DAYCARE

and building process; everything from selecting contractors to the finishing touches. The last day will finish up with a three hour seminar on cleaning and maintenance so you can get the most life out of your brand new facility.

Do you already own and operate a successful facility? Or maybe you’re an employee wanting to learn more about the industry and improve your skills? There’s still plenty to learn for any pet professional. Some topics include customer service, employee training, dog behavior and health, daycare activities, and First Aid & CPR certification, just to name a few.

An inspiring and motivational keynote address will be given by Janelle Whiteman on the opening night of the expo, followed by a fun and relaxing meet & greet party, hosted by the guys of K-9 Resorts Daycare and Luxury Hotel.

We’re also doing something new with our Monday and Tuesday luncheons this year. At the Lunch & Learns you will have the opportunity to review what you learned that day and put it in a format that works for you, with the help of Eric Beck from MasterPlan Pet care.

And don’t forget about attending the trade show! The trade show will take place on Monday and Tuesday and will feature all of your favorite vendors, including many new ones with products and services you never knew you needed!

With all of the new and exciting seminars and fun events, it will be well worth it for anyone in the boarding or daycare industry to attend this year’s expo! To register for the expo and for additional information, go to www.petboardingexpo.com. n

learn from the

pros

November 13–16, 2016 Hershey Lodge & Convention Center

Hershey, Pennsylvania

shop

network

the trade

show

with industry

peers

new extended design program

and daycare

EXPO WEST

www.PetBoardingExpo.com

Strategy THE CONCIERGE

CONSISTENTLY THRILLING CUSTOMERS AT YOUR FRONT DESK

By Eric Beck

A

pet parent walks in the door…ready to be treated with respect and given the attention they deserve. They are excited to be at your facility and happy to see their expectations met, possibly exceeded. They believe in YOU. Instead, they get ignored and ushered into chaos in a blender as your team desperately tries to juggle demands.

The customer standing there is getting angry; and the customer on the phone can tell something’s not right; the dogs are going nuts and the employee spinning all the plates is just about to drop them. Stress is going up. Everyone is losing. Without meaning to, a bad workflow design has caused your #1 opportunity for growing relationships with your customers & prospects to literally wither and die—and it’s happening day after day in most facilities.

But it doesn’t have to be this way.

What if, in each aspect of this situation, you had a qualified, relaxed,

22

PET BOARDING & DAYCARE

competent, trained employee who could give 100% of their attention to your customers’ needs? What would your customers prefer? What would be most beneficial to all involved? What would enhance your reputation? What would bring in more revenue? What would build long term commitment and loyalty by all involved?

What Does Science Have to Say? Neuroscience* has dispelled a powerful myth in this regard: Multi– tasking is IMPOSSIBLE. Without getting too deep into the research, the problem is that when we try to do two things at one time, our brain enters a mode called “switching”. Switching is just that…your brain trying to go back and forth between two tasks at light speed. When we are dealing with customers our full attention is needed and a split brain is not capable of meeting this need. Our relational attention must not be split or it will convey precisely the wrong message: We

Don’t let your best friend get sick.

Canine flu is a highly contagious respiratory disease for dogs* • Possible symptoms: coughing, sneezing, loss of appetite, lethargy, fever • Spreads directly from dog to dog and via sneeze droplets through the air • Can be transmitted indirectly (water bowls, toys, collars, leashes, hands, shoes, and clothing)

Social dogs are most at risk • Dog parks • Boarding facilities

• Kennels • Doggie day care

• Pet shows/sporting events • Groomers

Other facts • Unlike human flu, canine flu can strike all-year round • Dogs can spread canine flu before showing any symptoms • Can cause pneumonia, with the potential to be fatal

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don’t care, we’re stressed out, and our operation is out of control.

In April 2005 CNN ran a story on their website* about the effects of this systematic distraction with the subtitle “Workers distracted by phone calls, emails, and text messages suffer a greater loss of IQ than a person smoking marijuana…”1 Oh my!

So why, in the most important relational situations, are we setting our facilities and staff up for failure? Your customers are throwing the relational ball of trust to you and your front desk team has to look away multiple times, close one eye, hop on one foot, and spin around twice before the ball arrives.

Are they going to catch it and score a touchdown with your customer or drop the ball, again?

The System is the Solution The system is the solution because 1 2

“memory”, “personality”, and “luck” are too variable to produce a consistently world class experience. It’s not that we don’t want the best people with the best personalities working on our team. Of course we do! But they are rare, hard to find, and sometimes hard to keep. And typically they don’t want to work in a service industry that starts off with pay at or near minimum wage.

So what’s needed is a process that everyone—at all levels of experience —can easily follow. Something so well designed that it’s virtually impossible to mess up.

Now I’ll be the first to admit that a great system is only as good as the discipline of its user, but we’ll save mining that golden nugget for another time.

For this article we’re going to focus on the system itself. I call it the "Concierge Strategy" and it has been implemented by one of the most successful customer experience companies in the world. In

the 10 years from 2001 to 2011, they have seen year over year revenue rise by as much as 95% and have expanded to over 300 locations with per store revenue up an average of 67%. Before I tell you who it is, I want you to learn how they did it!

The question was simple: How can we give our customers a WOW experience at our front desk? Not an acceptable, typical, or “normal” experience. We need to make a statement that sets us apart from our competition. How can we do that?

The best innovations are always driven by the best, and usually, the simplest questions.

The leader of this discussion asked his team to tell him about the best customer experience they had ever had.

Most of them talked about hotels like The Four Seasons.2 And from there, Apple created one of the most successful retail, onsite experiences ever achieved in any

"E-mails 'hurt IQ more than pot." CNN.com Cable News Network, 22 April 2005. Web. Gallo, Carmine “How The Four Seasons Helped Apple Store Rewrite the Rules” Forbes.com. Forbes Media LLC. Web. 20 May 2011.

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If you have someone who is great on the phone, put them on the phone in a quiet, undistracted environment. Let them take all the inbound calls like the pro they are. When the phones are not ringing let them make your outbound calls. industry, much less the complex computer industry. If you think about it, Apple fan or not, their stores are laid out just like hotel lobbies. They are clean, elegant, and feature no cash registers, no log jams, and no spinning plates! They have a concierge service just like a hotel where your problems are solved and relationship is job #1. 3 How To Adopt Your Own Concierge Strategy • Step 1: Ask the same question that Ron Johnson of Apple, along with Steve

Jobs asked…how can we enrich our customers’ lives?

In order to get the real answer here, don’t think a simple “survey” will work. It won’t. Customers are terrible at predicting what they want. They need to see it and experience it and you need to track their responses. Also don’t go with YOUR opinion of what they will want. You are NOT your customer. No matter how long you’ve been in business and how well you know all your customers, you are not them. You do not have their same purchase preferences, psychographics, demographics, etc.

So what to do? I recommend the book Getting Inside your Customer’s Head by Kevin Davis. And start making small incremental changes based on the role you are playing for your customer at different points along their service experience. Any changes must align with your core values and the “take– aways” every pet parent wants: safety, courtesy, professionalism, value, and individual attention.

• Step 2: Streamline the most important experiences.

Consider removing the phones from your front desk area and limiting any transactions or paperwork. Yes, this process alone takes more explaining than we have space for in this article, but the basics go back to the multi– tasking problem. If you have someone who is great on the phone, put them on the phone in a quiet, undistracted environment. Let them take all the 3

26

inbound calls like the pro they are.

When the phones are not ringing let them make your outbound calls in the following categories: Thank You’s, Reminders, We Miss You’s, Event Notice, etc. You should be in phone contact with each customer or prospect about once every 90 days. Since most of these will be voicemails, it takes very little time but has a huge impact.

The same goes for your in-person greeters and dog runners; let everyone do what they do best!

• Step 3: Remove anything that can be done elsewhere or can be automated.

Think new client forms, paperwork, releases, waivers, vet records etc. All these can and should be automated.

Create forms on your website (No, not scanned documents people have to download and fax in!) You need actual forms that can be filled out online so that: 1) It’s legible, 2) All fields are completed, and 3) You and the customer get an e-mail with the information so communication is clear and confirmed the first time.

Some will say, “But my customers don’t use the computer.” Well, in some cases, that’s true, but it’s not likely for the majority of cases. But if a customer can’t or won’t use the computer, have one available in the front area and ask an employee to assist them by filling it out for them. The customer feels supported and your business doesn’t get bogged down by making the exception to the rule.

Garrison, Mark "What Apple Learned from a Luxury Hotel." Marketplace.org.

31 December 2013. Web. PET BOARDING & DAYCARE

Remember to be systematic and track what you are doing. If you do it randomly or haphazardly, you won’t know what is and is not working, which makes us all susceptible to falling into what I call “mythologies of perception.”

• Step 4: Measure.

Your business is a series of measurement points (key performance indicators) that will tell you everything you need to know. But you have to actually know what to measure, how often to measure, and how to measure.

Finally, you have to know what to do with the results you get - what do they mean and what should the response be, if any.

This is a big part of getting your business to full potential. But for starters, consider measuring the following items as they relate to your front desk: 1. How long does it take on average for a customer to check in? Just watch your lobby video for 15 min and create an average or just be in the lobby for 15 minutes.

2. How long does it take on average for a customer to check out? (same method as #1) 3. How many missed phone calls happen day by day for a week?

4. How many reminder calls result in an extra being purchased?

5. How many problems were kept small by reaching out to a customer to say thank you?

Don’t let “How could I ever measure that?!?” stop you. Get creative.

What’s important is not scientific level accuracy. Consistent measuring will help you see the trend. Some measuring is always better than none! Follow the trends and you’ll see with much greater clarity than trying to perfect micro-measurement.

• Step 5: Refine Using the Add, Remove, Maximize,

Minimize method, look at the results you are seeing and take incremental steps to refine the process. Remember to be systematic and track what you are doing. If you do it randomly or haphazardly, you won’t know what is and is not working, which makes us all susceptible to falling into what I call “mythologies of perception.” A business is no place for superstition!

•Step 6: Repeat.

I often get asked at conferences and in webinars, “What are the things the best facility owners do in any given week?” My answer: consistent strategy time. Strategy time is best done daily or weekly and includes the following actions that are done without fail and without distraction: 1. Read your Strategic Vision / Perfect Customer Experience Story.

2. Review your top 10 KPI’s.

3. Review your manager’s performance.

4. Review your current projects.

5. Review the effectiveness of any new processes.

The Concierge Strategy can make your facility not only stand out but create a “one of a kind” experience that builds loyalty, keeps great customers happy, and inspires your team to rise to new heights. n This article was based on a module in the MasterPlan Pet Care leadership program called The Concierge Strategy. Eric Beck is the founder of MasterPlan Pet Care and the Total Integration Leadership Program www.masterplanpetcare.com.

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THE

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I

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n today's world, pets are no

level by putting all of their services under

The Barkley has 24 hour supervised

longer just pets, they are members

one roof; boarding, daycare, grooming,

care. Their number one goal is the

of the family. So it's only natural

training, veterinary services, boutique

health and safety of the pets. The

shopping, etc.

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that when the family takes a vacation, their pets also get to enjoy some fun and pampering.

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Pet owners loved this one-stop

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they have to be away.

to providing customized services and

a second facility. It is located in West

activities for the guests who stay at or

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California. The newest location quickly

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the hometown of Howard Perlmuter,

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the founder, CEO, and President. The

and it has a VCA (Veterinary Centers of

Barkley takes pet hospitality to a new

America) animal hospital attached to it.

"When a pet checks into The Barkley, It's almost like checking a family member into assisted living," says Mr. Perlmuter. "They have all their needs cared for. They are fed, entertained with fun activities, and they and their living area are kept clean.�

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Barkley is based on research," Mr. Perlmuter continues. "We offer accommodations that range from basic, simple rooms all the way up to extreme luxury suites. The leisure suites are custom designed with glass doors and are sound controlled to reduce stress. Our Barkley Park suites are in a park-like setting with artificial turf, flowers, plants, and fountains. There are also pool side suites that surround the indoor pool in the Cleveland facility. Each suite has personal webcams that broadcast 24 hours a day, a flat screen TV, and leather furniture."

Every guest is considered a Barkley VIP and receives the same exceptional standard of care no matter where they stay; in a basic room or an upscale suite.

In the LA facility, there is a replica of

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Pet guests at the resort don't just sit in their room. Every pet that comes in selects activity lifestyle options to fit their interests - anything from surfing lessons to soothing massages.

Rodeo Drive. The dogs can choose from luxurious storefront suites like Sniffany's, Kate Spayed, Neiman Barkus, and Yves St. Bernard on Hollywoof Boulevard.

The guests at Kitty City stay in custom designed multi-level 'kitty­condos'.

They have everything a curious kitty could want—an enormous salt water fish tank, bird watching, cat nip, toys, and trees for climbing.

Air purification is a really big deal at The Barkley. Every room is isolated from the others and has its own air system. Air is exchanged at least six times an hour. In Kitty city, each cat condo has its own reverse ventilation system where fresh air is piped into the main room, enters each cat condo, and then it is pumped out through a plenum in the roof of the building. That insures

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that each cat enclosure is viral free. You also don't smell litter box odor because the air is removed from the facility.

Pet guests at the resort don't just sit in their room. Every pet that comes in selects activity lifestyle options to fit their interests - anything from surfing lessons to soothing massages. And, they hold lots of birthday parties, 'barkmitzvahs', and 'mutt-ramonies'.

There are activities to suit every pet's lifestyle; night time tuck-ins and bedtime stories, pool parties, ice cream socials, and more. And, if they want a little snack, pets can hop into the limo and go through the neighborhood McDonald's drive thru.

The Barkley also offers cage–free day camp. There is lots of play equipment in the indoor/outdoor setting. They have plenty of shade structures and water misters to keep the dogs cool. Dogs can come for the day and overnight guests can also attend day camp. Pet training is available through The Barkley Academy. They offer group, individual, or stay and train obedience classes. Their grooming salon and spa is all about natural, organic, and environmentally friendly products.

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33

They offer everything from basic grooms to the celebrity package of mud masks, massages, pawdicures, and more.

"Safety is paramount at The Barkley," continues Mr. Perlmuter. "All the hallways are extra wide. When the pets are walked, the staff member walks toward the center of the hallway and the dogs walk close to the wall. That way they always have two people between dogs. We have 8 to 10 foot high buried fencing along the entire

perimeter. And, we have antimicrobial K9 grass inside and out."

"Our website and social media are the most integral part of our marketing campaign," says Mr. Perlmuter. "When people are looking for a specific service, you want them to be able to find you.

So we pay a lot of attention to search engine optimization, making sure that our website and all our social media is mobile friendly.”

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"We have found that about 70 percent of our customers are mobile, using iPhones and iPads—devices that are not computers. We have simplified our website, www.thebarkleypethotel.com, to be easy to navigate," he continues. "And, social media is huge with us. Our clients follow on Twitter and Facebook to see what is happening with the pets, and they love our YouTube videos."

One of the most important contributors to the success of The Barkley is its staff.

"Our staff sets us apart from our competitors," says Mr. Perlmuter. "Our buildings are great, but they are just brick and mortar. At the end of the day, it's really what you do and how you do it that matters. Our staff is incredible! Everyone goes through a very extensive formalized training program before they begin anywhere in our system. Our procedures and protocols are very strict on how we do things, and there are written tests and practical exams for every area."

The Barkley staff also goes through emergency preparedness training for flood, earthquake, and fire safety.

The Barkley Pet Hotel and Spa has some pretty far–reaching expansion plans.

They will soon open two new locations in Mumbai, India. These net zero facilities are designed to be so energy efficient that they will be self–sustaining.

The Barkley–Worli which is now under construction, is part of a huge building complex and will be 200 meters (that's a whopping 656 feet) above the earth when it is finished. That's proof positive that the sky really is the limit for The Barkley Pet Hotel & Day Spa! n

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FACILITY

INTERIOR $

$ $

ALTERATIONS

$

$

WITH AN EYE ON RESALE

By Rick Bacon, FAIA

Physical alterations to an existing building that will house an animal care business are inevitable. Some changes are optional and some may be required.

I

am often asked if the interior design and alterations to a building being purchased for a boarding / daycare business can be planned in a way that makes it easier to resell the building. The financial institution you have approached seeking a business loan is applying similar criteria: Will this building we might have to repossess be hard to resell?

Classify Your Improvements You can classify renovations and improvements into three categories: have–to, need–to and want–to. A “have– to” improvement may be building code related or a critical function like the heating, ventilation, and air conditioning (HVAC) system.

A “need–to” improvement might be partitions between large dog and small dog areas in a daycare setting or new plumbing for a bathing and grooming

36

area. These are necessary to provide a core service. A “want–to” improvement might be installing an epoxy floor finish system that improves appearance. It’s a nice feature but you can function without it.

When upgrades to an existing building are voluntary, choose those that add some value to the building or improve efficiency or income. You want to derive some benefit, especially if you are the building’s owner and will not be there long enough to depreciate the expense fully.

Building Codes These renovations are necessary because the building has fallen out of compliance with current codes governing occupied structures.

These codes include the local current building code, fire code, mechanical code, energy code and, possibly, PET BOARDING & DAYCARE

the Americans with Disabilities Act (ADA). The National Fire Protection Association (NFPA) 150: Standard on Fire and Life Safety in Animal Housing Facilities will likely apply. You may need to hire a consultant to assist you with your due diligence effort to determine what renovations or improvements will be required by your local government.

Energy Codes The energy code determines what r–value (thermal resistance) is required and is based on the climate in your location. Three ways to increase insulation are to add insulation board, add batt insulation or add spray foam insulation. These are most often integrated with the roofing system and attic spaces but may include better insulated walls, also.

Adding board insulation to the roofing system can be costly, especially

SPRAY–ON

FOAM

The photo shows a wall installation, which should be finished with appropriate material up to at least four feet in height from the finished floor elevation.

if the existing roof system does not need to be replaced. Instead, consider spray–on foam to provide the proper roof r–value. Foam may be a somewhat more costly insulation than adding batt insulation attached to the bottom of the roof structure or placed on top of a hard or dropped ceiling system. However, the spray-on foam applied to the underside of the roof deck provides insulation and acoustical benefit as well. Spray–on foam can also be applied to walls but these should not be left unfinished with the foam exposed because dogs could chew on it. Spray–on foam applied to the underside of the roof deck may be left unfinished, but it is often concealed with a lay–in ceiling system.

(gypsum board), impact resistant sheetrock, or even cement board (the kind that

goes behind tile walls) depending on your priorities for the dog housing. All these

Wall Construction for Boarding Areas

Try to avoid masonry construction in boarding kennel interior fit-outs (tenant leasing a space) and fit-ups (could be lease or purchase). Consider insulated stud walls with a finish material to suit your budget. If another tenant or owner comes in, these wall types are easier to remove.

Other wall construction to consider includes moisture resistant sheetrock PET BOARDING & DAYCARE

37

4FT WALL FINISHES Finish up to four feet in height from the finished floor elevation, which is where most of the cleaning will occur.

are more cost effective, but less durable, than epoxy painted concrete masonry unit (CMU) block or glazed block walls.

Freestanding kennel / suite systems are available. The installation is not permanent so they can be relocated. These systems do require some floor drains. A cost benefit analysis would be appropriate when deciding between building-in your dog housing or purchasing freestanding units.

Wall Finishes in Animal Areas Think fiberglass reinforced panels (FRP) or ceramic / porcelain wall tile.

All that is needed is cleanable surfaces with minimal joints (the fewer the better). Finish up to four feet in height from the finished floor elevation, which is where most of the cleaning will occur. In some areas or in a limited number of suites, the finish material may need to be higher for those dogs that tend to be destructive via jumping,

chewing and scratching. Make sure the mounting adhesives are for wet–area installation. Also make sure that the top and bottom trim is properly installed and caulked. Monitoring and repair of this caulking should be part of your regular maintenance plan. Wall tile is fine, also, as long as the mortar joints are minimized and installed properly.

Epoxy grout is recommended.

Floor Finishes Separate the floor finishes into two category locations: public spaces, such as the lobby, and animal related spaces, such as the suites, grooming, food prep, etc. Public areas may be finished with a variety of floor finishes that suit your decorating theme and budget. Keep it durable and able to withstand the occasional spill or doggie accident.

Floor finishes in animal related areas must be durable and impervious.

True resinous flooring systems may be

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Floor drain installation in an existing slab can be a costly proposition

especially if you want a drain per suite. Further, if you want to slope the floor

to the drains in each suite, huge areas of the slab would have to be removed. considered too costly, especially if you don’t think you will be in the building a long time and/or have a tight budget.

Grinding down and polishing the existing concrete floor is the finish I see most often. Remember that older concrete will have soaked-in residue from the original owner. Also, concrete does have cracks that will need to be cleaned. There are sealants made to repair these cracks, but it may not be worth the effort. Just commit to keeping them clean.

Another route that would allow a color stain to be added is to prepare the floor then pour on a thin topping coat of concrete (¼” to 1 1/2” thickness range).

The color may be added to the topping coat. If you have or suspect you will have drainage issues, applying a topping coat is

the way to add some slope to the floor.

If you plan to install tile and have cracks in the concrete slab, consider applying “bridging tape” to seal and level the cracks or the tile may crack, too. Do not paint your floors. The paint will not last.

Drains Floor drain installation in an existing slab can be a costly proposition especially if you want a drain per suite. Further, if you want to slope the floor to the drains in each suite, huge areas of the slab would have to be removed. I’m not sold that this is worth the expense especially if the concern is reselling the property.

Consider drains in the walkways only or no drains at all. It is important for you

to think through what your cleaning and dog walking protocols and staffing levels will be when deciding how many and where to place floor drains. If you are using the freestanding kenneling / suite systems mentioned previously, strategically placed floor drains will need to be installed.

Acoustics Any acoustical control that you can add will have multiple benefits for your furry and feathered guests, pet parents, and staff. Reducing animal stress and improving the work environment are chief among those benefits. Some techniques to use include suspended acoustical ceilings, reducing the number of suites grouped together, and

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acoustical wall construction separating different functions, such as the dog housing from the lobby. If you board cats, they will greatly appreciate some peace and quiet, too.

HVAC Your HVAC system is one of the most important assets of your boarding / daycare business. In animal care facility design, I fall in the function-over-form school of architecture and hold steadfast to my basic design premises for HVAC. The system must meet the energy code, handle air volume exchange, and address humidity adequately in animal housing areas. A zoned system to support the different needs of different function areas is preferred. Go in expecting to augment the existing HVAC system. Hopefully you will only need to add an additional unit or zone and not replace the whole system.

Prioritize, Coordinate and Sequence the Work Prioritize your have–to, need–to, and want–to wish list. Even if you are making mostly cosmetic changes, the work will go more smoothly if it is coordinated and sequenced properly.

Some design work with signed and sealed construction drawing, plus getting building permits may be required. If you are not experienced with renovations, find a general contractor or an architect to help you. Many of the interior alterations I have discussed can be done with little or no infrastructure construction and could be removed at minimal expense by a potential buyer. n

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Richard S. Bacon, FAIA, is owner and principal architect at Bacon Group, Inc., an architecture firm that specializes in the design of animal care facilities. Rick is a registered architect with over 35 years’ experience in the design and construction industry. Based in Clearwater, FL, he may be contacted by phone at 800-961-1967 or via email at rick@bgarchitects.com.

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41

BY ne n a z Su cker Lo

I

n 2001, I heard a presentation by a very wise man named Jim Krack, who was a prominent pet resort owner in Colorado and founder of the American Boarding Kennels Association.

His session was called “Do You Want to be Right or Do You Want to be Happy?”

The basic premise of his talk involved the frequent mishandling of customer complaints regarding occasional pet injuries or illnesses that can happen while boarding.

No matter how safe your facility, how perfect your cleaning protocols are, or how expertly trained your staff is, anything can happen while a pet is staying with you. Such as: • Dogs pawing at fencing can pull their toenails out.

• A dog can strain a muscle, get a puncture, or scrape themselves while happily jumping and playing in the yard.

• A 5-pound dog can wriggle right out of a sweet staff member’s arms and fall to the ground.

42

No matter how safe your facility, how perfect your cleaning protocols are, or how expertly

trained your staff is, anything can happen while a pet is staying with you.

• A dog that has contracted canine cough at the local dog park checks in to board (but isn’t symptomatic yet) and spreads it to several dogs in your facility before you see any signs of an illness.

The possibilities are endless!

When events such as these happen in your resort, you may need to seek veterinary care. It is common practice to call the pet owner or emergency contact to let them know about the situation and to explain what steps will be taken to help their pet. During the process of discussing the situation, the pet parent may remark that the resort is at fault and should pay all expenses. Both sides may become defensive, escalating the conversation.

All the conflict resolution training in the PET BOARDING & DAYCARE

world doesn’t make this an easy thing to deal with. I wasn’t happy at all trying to rationalize why my pet resort was not responsible for these matters, even if I was right the majority of the time!

Many times in our drive to justify our procedures or actions of the staff, we alienate our customers with our “no fault” arguments. A prime example of this is when there are several dogs in the facility that contract an upper-respiratory illness, and we must explain to the pet parents how this happens. A common explanation of why the resort shouldn’t be responsible for little Fluffy’s vet bills might sound like this: “It’s just like when you take your child to school and they contract a cold”.

The obvious implication is that a human

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parent wouldn’t blame the school for making their child sick or ask the school to pay for the doctor visit.

Although the example and comparison to children in school is actually very true, it has been my experience that having these types of conversations with a pet parent is extremely stressful. Just because you are right, most pet parents aren’t happy that they must now deal with taking their pet to see the vet, pay for the expense,

and listen to several days of that horrible honking cough.

Instead of arguing with your customers about who is at fault, Mr. Krack suggested a revolutionary solution.

Pay the veterinary expense and simply say, “We’ve taken care of that for you.”

This made sense to me, and in 2001, after ten years of trying to explain and educate the customers and hours of investigating pet incidents and injuries, I took this advice to heart and created our Healthy

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PET BOARDING & DAYCARE

Care Warranty program.

Many resorts offer this service without a fee or include it in their boarding rate. However, it was suggested in the seminar that a small fee of between $3 and $10 per visit/per pet should be charged to offset veterinary expenses you incur. I was apprehensive about introducing a new fee, but only a handful of customers complained about it. Now, years later, we never hear complaints. It is not offered as an optional program, but parents understand and accept it as a policy that is beneficial.

Be specific in your agreement about how much you will cover per incident.

ABC’s Health Care Warranty has a $500 limit paid for each incident. Exclusions for coverage are: o Pre-existing medical conditions o Injuries caused from fights between family dogs when sharing an enclosure.

Fifteen years later, the warranty program has been a huge success for ABC. The program fees are more than enough to cover the veterinary costs incurred. In fact, we have never had a year when costs exceeded income for this program. In 2015, we netted almost $25,000 from the HCW program.

Taking care of pets is such a privilege and a huge responsibility. The situations can still be very hard to explain to a parent, but it’s satisfying to be able to say, “We’ve taken care of that”. I encourage you to think about adding this service to your business. You will definitely be happy you did so and most times you will still be right! n Since 1991, Suzanne has owned and operated ABC Pet Resort, a multi-service pet care center located in Houston, Texas.

Throughout her career, Suzanne has been involved with creating safety and operational standards for the pet industry.

With her husband Al, and his design/ build construction company Turnkey, Inc., Suzanne continues to share her experiences and insights as a consultant for start-up pet care facility owners.

PET BOARDING & DAYCARE

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10 TOP

TAKE AWAYS OF THE ANNUAL PET SERVICES

FINANCIAL SURVEY

By Susan Briggs

T

his past spring, International Boarding and Pet Services Association (IBPSA), in conjunction with business consultant, Crystal Canine, commissioned an online financial survey of 109 pet care service business owners based on their 2015 financials. Compared to the prior year’s survey, the results indicate that the pet care services industry— primarily pet boarding facilities— is beginning to feel the effects of increased competition, thanks to the multi-billion dollar industry lure and growing popularity of online pet sitter listing services.

While the bar to enter the pet care services industry remains low, the bar 46

for long–term sustainability is rising thanks to the increased competition.

Despite this, survey data reveals that many in the industry may not be maximizing their revenue opportunities.

“Pet care services has been an easy–to–enter, rather unstructured industry, but if its members want to move into long-term prosperity, they need to get serious about the business details,” said Carmen Rustenbeck, Executive Director & Founder of IBPSA. “Staff training and certification as an investment, understanding financials as a planning tool, setting yourself apart with complementary services, and implementing marketing strategies to make certain everyone PET BOARDING & DAYCARE

knows about your certifications and services, must be as integral a part of a business as high–quality pet care.”

Industry benchmarks provide a great opportunity to take a big picture view of your business compared to averages. This annual peek into the industry offers interesting insights and helpful benchmarks for pet care facilities to utilize when planning and forecasting. The survey results also help spot trends and identify where the industry as a whole is headed. The following highlights ten key insights from the report. So, how does your business compare? What are the trends and takeaways for your business? Let’s count them down.

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HOW DOES YOUR BUSINESS COMPARE?

AVERAGE

45

OCCUPANCY

%

AVERAGE

FACILITY SIZE

$

10. Small Niche Business is on the Rise – Bigger is not always better as the median facility size is 4,400 square feet and the most frequent survey response was 3,000 square feet. This could be a result of an increase in home-based businesses that represented 33% of respondents.

As clients seek more customized care options and building and renovation

DOG LODGING

ON WAGES

4,400 46% PAY 101 SQUARE FEET

60%

OF REVENUE SPENT

.

48%

DOG DAYCARE

OVER

MINIMUM WAGE

costs continue to rise, the trend of small niche service providers is expected to continue to grow. But what if you’re not home-based? What if you have a large, professional facility? This “smaller” trend could be incentive to not only assess your customer service (Does it feel intimate and personal?), but to make sure you are effectively conveying to your clients and community the

18% CAT LODGING benefits of a staffed and trained pet boarding facility.

9. Staff Training Investment Grows – Business owners are recognizing the importance of investing in training their staff as this category was one of two that increased significantly over the prior year. If, as indicated below, payroll is the largest cost category, then getting the most value out of that cost is crucial. The staff training trend is expected to continue due to increased competition, an industry focus on providing quality care, and the newly available professional independent certifications.

8. Wages – Payroll continues to represent the largest cost category with the median spending 45% of revenue on wages. The most frequent response was 50% and confirms the survey response of 46% that pay $1.01 or more above minimum wage to their entry–level staff. Increasing minimum wage rates will continue to challenge business owners to manage this metric.

7. Ancillary Services Have Room to Grow – Very little incremental

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PET BOARDING & DAYCARE

income is provided from services outside the “big 3” of lodging, dog daycare, and grooming. Increasing sales of other services like dog training, retail sales, and dog walking are opportunities to increase revenue in your existing space.

6. Excess Capacity Exists – The highest occupancy result was dog lodging with a median of 60% with dog daycare following at 48% and cat lodging far behind at 18%. The challenge for business owners is finding ways to utilize the excess space capacity in off-peak seasons to earn higher revenues per square foot.

5. Profit Percentages Over 10% are Hard to Achieve – The median range of profits of our survey participants was 11%–15%.

Of particular concern is that 11% of respondents reported a net loss and 48% of all respondents earned 10% or less in profits. Industry trends revealed in the survey will continue to pressure the bottom line so owners need to be diligent in monitoring this metric.

4. Analyze the Discounts You Offer – The average discount offered is 18% with the highest discount offered being for multiple pet boarding. The industry average discount percentage is higher than profits earned (as shown, above), so this is an easy opportunity to increase revenue and your own pay. Discounts should be a win for your business and your clients, so consider shifting them to reward behaviors that benefit your business such as offering discounts for boarding during off–peak periods.

and raise some rates in your business to ensure you are covering your costs and making a profit. Price for the quality of care you provide, not the appearance of your facility.

2. Dog daycare is a commodity – A third of daycare providers have capacity for over 50 dogs per day and, for the majority, there is excess capacity.

The median rate charged is just $25 which is likely evidence of increased competition. This figure is particularly striking as, by way of example, it’s the same rate charged at pet care facility Urban Tails in Houston, Texas, when it first opened in 2000—16 years ago.

The survey results offer evidence that customers are price shopping for daycare services. So, what should you do? Try not only changing your financial model, but also improving your program so dogs have more fun, staff enjoy their jobs and you make more money.

1. Increase your pay – The median pay of business owners was $57,000 in 2015, down significantly from 2014.

Only 25% of owners paid themselves

DAYCARE IS A COMMODITY

1/3

OF DAYCARE PROVIDERS

HAVE CAPACITY

FOR OVER

50

DOGS PER DAY

(And for the majority, there is excess capacity.)

AVERAGE

RATE CHARGED FOR DAYCARE

25

$

3. Raise Rates if Your Business Is Over 10 Years Old – The survey pointed out a pattern of older businesses pricing lower than average in their market. The takeaway? Make it a practice to annually complete a pricing analysis

PET BOARDING & DAYCARE

49

The business owners that will lead the pet care services industry in the future are those that understand the details of how they make money and the profitability of each key service.

$80,000 or more last year. Business owners frequently pay themselves last with what is leftover. A better strategy is to pay yourself first, and then adjust your business model to operate with the money that is left for all other expenses.

Ultimately, communities need high quality pet care centers, they not only provide expert care for individual pets, but they are frequently relied upon in times of community crisis and are often sources of aid and support for

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local shelters and rescues. To ensure the long-term viability of your business it’s important to stay on top of industry trends. The best takeaway from the results of this survey? Along with challenges in this industry there are also promising opportunities to increase profits and your own salary.

The business owners that will lead the pet care services industry in the future are those that understand the details of how they make money and the profitability of each key service. Setting financial goals and spending time each month reviewing your financial results is an important step to take to ensure your business thrives and continues to provide an exceptional quality of pet care.

Because the information gleaned from the survey is vital to keep our industry moving forward—and upward—IBPSA and Crystal Canine are committed to continue providing key insights, along with education opportunities, to ensure pet care services remains a strong, viable business choice.

Look for announcements in April of next year to participate in the next survey and, in the meantime, take advantage of all the information contained in this year’s 80+ page survey report now available through ibpsa.com or crystalcanine.com. n

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