Case Studies

Research-Grade Price Elasticity of Demand for a Leading Veterinary Care Network

Healthcare & Life Sciences

The team are very, very talented. The ability to interpret big data and fill in the gaps is great. And they come up with practical recommendations.

Commercial Director

Opportunity

A major UK veterinary care provider operating a nationwide network of clinics sought to enhance revenue and profitability through a more sophisticated healthcare pricing strategy. With growing competitive pressure and rising operational costs, the client recognised the opportunity to apply data-driven pricing analytics to better understand price sensitivity and value perception. Pearson Ham Group was engaged to help establish a robust, evidence-based approach to value-based pricing in private veterinary healthcare.

Challenges

  • Develop consistent pricing structures across a diverse network of clinics
  • Understand true customer price sensitivity and demand elasticity
  • Balance profitability targets with client retention and service perception
  • Overcome data noise and operational complexity from previous attempts
  • Create a scalable pricing model adaptable to multiple locations

Outcomes

The project delivered a validated healthcare pricing framework, allowing the client to confidently execute profitable fee adjustments and monitor real elasticity effects. It also built a foundation for continuous revenue optimisation and international scalability.

Why It Matters

This work represents a step-change in data-driven healthcare monetisation, proving that rigorous elasticity testing can drive sustainable profitability without compromising customer trust. It also demonstrates how value-based pricing principles can be successfully applied to private healthcare networks.

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Results

Approach

1. Define & Diagnose

Pearson Ham Group conducted an in-depth review of pricing data across clinics, identifying inconsistencies and defining key treatment categories for elasticity testing. Control and test groups were created to isolate true price impacts.

2. Design

A dual strategy was developed, combining price harmonisation (raising prices to minimum thresholds) with price optimisation (tailored increases by treatment type). Analytical models were built to forecast elasticity and profitability outcomes.

3. Implement

Targeted fee adjustments were rolled out across pilot clinics. The impact was tracked using daily transactional data, adjusted for variables such as staff availability and treatment mix to ensure statistical validity.

4. Sustain & Evolve

The client received a dynamic monitoring dashboard and governance model for continuous price tracking and future iterations. The methodology is now scalable for rollout to additional markets and service lines.

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