The Hidden Profit Lever: What Inventory Is Really Costing Your Practice

Most practice owners know inventory is a problem. Few realize just how much it's quietly costing them.In this episode, Martin and Peter sit down with Emmitt Nantz, co-founder of Inventory Ally, to unpack why COGS is the most overlooked profit lever in veterinary medicine and why fixing it doesn't require firing anyone or seeing more patients. Emmitt also makes a compelling case that veterinary medicine is a service business first, and that practices winning long-term lean into client relationships, not just transactions.In this episode:Why COGS, not revenue or labor, is the biggest and most actionable profit leverHow most practices carry 30–40% more inventory than necessaryThe hidden opportunity cost: staff counting pills instead of delivering careOnline pharmacy as a complement to in-house inventory, not a replacementClient lifetime value vs. average transaction; the real measure of successThe Stethoscope & Spreadsheet Seven: Emmitt answers Questions #1 and #4Timestamps:00:00 — Intro & welcome00:53 — Emmitt's background: 20 years in vet med ops, Banfield, SmartFlow, IDEXX & Inventory Ally04:25 — Breaking down the P&L: revenue, labor, and COGS06:37 — The PE arbitrage opportunity and why COGS is the answer08:53 — The emotional case for fixing inventory over cutting staff09:43 — Inventory as an enabler of service, not the service itself12:10 — Why practices over-order and the 30–40% excess finding14:41 — Headwinds and tailwinds for independent practices19:00 — The cost of inaction is getting exponentially higher21:57 — The opportunity cost of staff time on inventory vs. client care23:00 — Online pharmacy: complement, not replacement26:52 — Does online pharmacy inflate your COGS percentage?27:29 — It's not about the percent; it's about the dollar30:30 — Client lifetime value vs. average transaction32:25 — The Stethoscope & Spreadsheet Seven begins32:54 — Question #4: What is your greatest joy in this work?33:30 — Question #1: If not vet med, what would you have done instead?37:31 — Emmitt's final thought: treat supplier relationships as partnerships38:22 — OutroMentioned in this episode:Inventory Ally · inventoryally.comVeterinary Management Groups (VMG) · myvmg.comSmartFlow (acquired by IDEXX) · Banfield Pet Hospital · Galaxy VetsNew episodes every two weeks. Supported by Veterinary Management Groups (VMG) · myvmg.com