ProSal percentages

ProSal percentages

source-image
Feb 01, 2006

I'm a bovine practitioner looking into ProSal compensation for my associates. I'm concerned with the percentage used to calculate the portion of the salary above the base. What percentage profit should a practice owner expect to make off of his associates?

"Typically you'll pay 18 percent to 25 percent of a doctor's production, not including bulk sales purchases, using ProSal," says Veterinary Economics Hospital Management Editor Mark Opperman, CVPM, owner of VMC Inc., a veterinary consulting firm in Evergreen, Colo. But you'll base the percentage you use on your actual costs of doing business. So the percentages you use could be higher, Opperman says, if you don't have a physical facility and your expenses are lower. "The average percentage used in a bovine practice really depends on the cost structure of the practice and the overhead expenses," says Opperman. "I've seen practices pay up to 40 percent, but the average is closer to 35 percent.


Mark Opperman
"If you calculate your rent, utilities, lay salaries, insurance, and so on, and you pay an associate 25 percent of his or her production, you're lucky to have 10 percent to 20 percent of profit or return on investment left. The bottom line is that an owner's entitled to a return on his or her associate. So figure out your total costs, factor in the associate's salary, and see what's left. It needs to be a win-win situation," says Opperman. (For more on the ProSal formula, see "Salary vs. Production".)

Hot topics on dvm360

Vetcetera: The complex topic of canine fear-related aggression

A guided tour of resources for addressing this popular and complicated subject, featuring advice from Dr. John Ciribassi.

Reality TV and the veterinarian: Discussing mainstream dog training advice with clients

Your clients may be getting behavior advice from cable TV. Get your opinion in the mix.

Blog: Election results pose obstacles for veterinary prescription law

Flip in U.S. Senate's majority may slow progress of Fairness to Pet Owners Act.

The war between shelters, veterinarians needs to end

Despite practitioners’ legitimate gripes, they’re hurting themselves.

7 steps to a better relationship between veterinarians and rescue groups

A DVM in the city shares his advice to veterinary practices for working with rescues.