September 16, 2025

Simplify, Segment, and Sell: Smarter Pet Care Pricing

Simplify, Segment, and Sell: Smarter Pet Care Pricing

I recently sat down with a multi-location pet care provider to talk through their pricing strategy. They were in the middle of rolling out new rates while also introducing packages, two changes that can have a huge impact on customer perception and profitability. What stood out in our conversation was not just the tactical questions about dollars and cents, but the bigger themes around how customers react to pricing, how they make decisions, and how pet care businesses can guide that process.

Pricing in pet care is not just a back-office exercise. It is one of the most visible parts of your brand. It shapes the way customers perceive value, whether they lean toward base options or premium ones, and how much they are willing to spend beyond the nightly rate. The good news is that even small adjustments, such as spreading prices apart, simplifying options, or reframing packages, can have outsized effects.

Here are the key lessons that came out of that conversation, and how you can apply them in your own business.

1. Small Discounts Are Not Enough: You Have to Show the Value

When pet care providers create packages, the instinct is often to tack on a small discount, maybe a dollar or two per day. On paper, that makes sense. Customers save a little, and the facility still protects its margins. The reality is that customers rarely notice small discounts unless you call them out directly.

In the case of the provider I spoke with, they had built discounts into their packages, but they were not highlighted anywhere in the booking experience. That left pet parents with the impression that packages were simply a bulk convenience, not a real deal. My advice was simple: spell it out. Do not just say “10-pack for $250.” Say “Save $5 per night with this package.” Better yet, include percentage language such as “20% off when you bundle.” Customers are trained to spot and respond to savings cues, and you need to meet them halfway.

Think of it this way: packages are not just about convenience. They are merchandising tools. If you want them to sell, you have to treat them like a promotion, not just a math exercise.

If customers don’t see the savings, they don’t feel the savings.

2. Spread Out Your Price Tiers

One of the first things I noticed in this provider’s pricing sheet was that several room types were priced within a few dollars of each other: $72, $75, $76. To the general manager, those small increments may feel logical. To a customer, they are nearly indistinguishable. The risk is that people default to the cheapest option because the others do not feel meaningfully different.

By spacing rates more deliberately, such as $69, $79, $89, and $99, you create psychological steps that guide decision-making. The $69 customer is your price-conscious boarder who just wants somewhere safe and clean. The $79 and $89 tiers capture pet parents who want something extra but do not want to go all the way to the top. The $99 tier signals premium value, which appeals to customers who always want the best. Clear jumps make each option feel distinct.

This is not just about raising prices. It is about segmenting your customers so they naturally sort themselves into the tier that matches their willingness to spend. Instead of crowding everyone around the low end, you open the door for mid- and high-tier rooms to capture more revenue.

Small gaps feel like noise. Big steps create choices.

3. Use Base Rooms to Drive Add-Ons

Every facility has an entry-level option. For this provider, it was their traditional rooms: cheaper, more available, and often the last to sell. These rooms serve an important purpose, but they do not always generate the kind of revenue you need to offset labor and overhead. That is why they are the perfect vehicle for packages.

Instead of offering the base room alone, bundle it with enrichment services like additional playtime. Not only does this help dogs get more stimulation, it also shifts the economics of your most labor-intensive inventory. The provider I spoke with realized that traditional rooms required more staff time because dogs had to be let out individually. By bundling them with playtime, they could both improve the dog’s stay and increase revenue.

In other words, your cheapest rooms do not have to be low-margin. With the right packages, they can be the foundation for upselling, ensuring you are not just filling space but generating meaningful revenue with every booking.

Your cheapest rooms can become your most powerful upsell engine.

4. Simplify Where You Can

It is tempting to create multiple variations of the same room type: traditional, deluxe traditional, junior traditional, and so on. While the business can see clear distinctions between these options, customers often can’t. To them, the differences blur together, which leads to confusion and decision fatigue.

In our conversation, we looked at traditional vs. deluxe traditional rooms. They were only a few dollars apart, and the distinction was mostly size. My recommendation was to merge them. By simplifying, you make the booking process easier for customers and give staff more flexibility to place pets where they will be most comfortable.

Every extra option adds friction. Simplifying does not mean reducing choice to the point of limiting revenue. It means presenting clear, meaningful differences that customers can grasp instantly. When in doubt, fewer, stronger options will outperform a cluttered menu every time.

If customers can’t tell the difference, the option is not adding value.

5. Pricing Is Never Set in Stone

Many pet care businesses think of pricing as something they revisit once a year. In hospitality, pricing is fluid. It should shift with demand, seasonality, and even booking channel. The beauty of online booking is that it makes these adjustments easy.

During our conversation, I emphasized that prices can be changed every day if needed. Sometimes, even pennies or a dollar here and there helps condition customers to expect variation. Over time, that opens the door to true revenue management: raising prices during peak demand, lowering them when you need to fill space, and testing what customers respond to.

The key is to stop thinking of pricing as permanent. Instead, view it as a lever you can pull continuously to maximize both occupancy and revenue. If you’re curious about revenue management (and how to get started), check out our guide.

Pricing doesn’t need to be static, it can shift with demand, seasonality, and even booking channel

6. Do Not Overwhelm Customers with Add-Ons

When we reviewed this provider’s a la carte services, we noticed a common problem: too many options. They offered everything from belly rubs to frozen Kongs to personal play. Some sold well. Others barely moved. The clutter made the booking process harder for customers and diluted the visibility of the services that mattered most.

The solution is not to stop offering enrichment. It is to curate. Focus on the services that consistently sell: play sessions, treats, tuck-ins, and Kongs. Trim the rest. When customers see a short, strong list of options, they are more likely to add them. When they see a long scroll of services, they freeze and skip past.

Think of add-ons like a restaurant menu. Too many choices make it harder to decide. A focused menu drives more consistent orders and better results.

If everything is special, nothing is special.

7. Match the Flow of Booking to the Customer’s Mindset

Another issue that came up was the booking flow. In this case, grooming appeared before enrichment in the online checkout process. That meant customers saw a $100 grooming service before they had even thought about play or activities. The result was sticker shock that discouraged them from adding smaller, more frequent services.

The natural order in a customer’s mind is: choose a room, choose activities, then consider grooming as a finishing touch. When the booking flow matches that sequence, customers are more comfortable and more likely to add extras along the way.

This may sound like a small detail, but it is actually critical. Presentation shapes behavior. By aligning the booking process with how pet parents naturally think about their dog’s stay, you increase both satisfaction and revenue.

8. Packages Should Be Targeted, Not Universal

A common mistake is building packages for every single room type. The result is complexity without added value. In reality, not every room needs a package.

For entry-level rooms, packages are powerful because they drive add-ons and help differentiate what is otherwise a basic option. For premium rooms, one or two thoughtful packages are enough. High-spending customers are already motivated. You just need to make it easy for them to upgrade.

By targeting packages where they make the most sense, you simplify the experience for customers and ensure each package is serving a purpose. More is not better. Smarter is better.

You do not need ten packages. You need the right three.

The Bottom Line

Pricing is one of the most powerful tools you have to influence customer behavior. It is not just about setting a number. It is about creating a structure that guides pet parents toward the choices you want them to make. Spread out your tiers so customers can clearly see the differences. Build packages that drive add-ons where you need them most. Keep your a la carte menu focused. And above all, remember that pricing is fluid.

The pet care businesses who embrace these principles are not just filling rooms. They are building healthier businesses, creating better experiences for pets, and ultimately capturing more of the value they deliver every day.

BY
Chris Tilson