
Growing a kennel business isnât about working harderâitâs about working smarter. These seven data-driven strategies help you identify opportunities, optimise operations, and grow sustainably.
1. Know Your Numbers First
You canât improve what you donât measure. Track these metrics monthly:
đ Crunch your numbers: Use our free Pet Business Revenue Calculator to model your facilityâs income and profit across all your services â with seasonal demand and capacity planning included.
Essential Metrics
| Metric | What It Tells You | Target |
|---|---|---|
| Occupancy rate | Demand vs. capacity | 65-80% |
| Revenue per available run | Pricing effectiveness | Trending up |
| Customer acquisition cost | Marketing efficiency | <1 monthâs CLV |
| Customer retention rate | Service quality | >70% annual |
| Average length of stay | Booking patterns | Know your norm |
| No-show rate | Policy effectiveness | <8% |
How to Use This Data
- Low occupancy + high retention = marketing problem (great service, not enough visibility)
- High occupancy + low retention = service problem (filling beds but losing customers)
- High no-show rate = policy problem (need deposits, better reminders)
2. Optimise Your Pricing Strategy
Most kennels underprice their services. Data-driven pricing means:
Competitive Analysis
Survey 5-10 local competitors quarterly:
- Standard overnight rate
- Premium room rates
- Package pricing
- Holiday premiums
- Add-on services
Position yourself deliberatelyâbudget, mid-market, or premium.
Dynamic Pricing
Adjust prices based on demand:
| Period | Pricing Approach |
|---|---|
| Peak holidays | +25-50% premium |
| Summer weeks | +10-20% premium |
| Slow season | Standard or slight discount |
| Weekdays (if slow) | Promotional packages |
Package Optimisation
Analyse which packages sell:
- If 10-day packages outsell 5-day, consider adding a 15-day option
- If nobody buys packages, they may be priced wrong
- Test different discount levels and track uptake
3. Reduce Revenue Leakage
Revenue leakageâmoney you should have earned but didnâtâis often 10-15% of potential revenue.
Common Leakage Points
No-shows and late cancellations:
- Require deposits (20-50% of stay)
- Enforce cancellation policies
- Send automated reminders
- Track repeat offenders
Undercharging:
- Audit invoices for missed add-ons
- Ensure holiday rates are applied correctly
- Check that multi-pet discounts are appropriate
Unbilled services:
- Track all services delivered
- Bill for late pickups
- Charge for special feeding/medication administration
Quantifying Leakage
Calculate monthly:
(No-shows Ă avg rate) + (Late cancellations Ă 50% rate) + (Missed add-ons) = Revenue leakageA 20-run kennel might leak ÂŁ500-1,000/month without realising it.
4. Increase Customer Lifetime Value
Acquiring a new customer costs 5-7Ă more than retaining one. Focus on lifetime value:
Retention Strategies
- Exceptional first experience: New customers form lasting impressions
- Personal touches: Remember pet names, preferences, birthdays
- Consistent communication: Updates during stays, follow-up after
- Address issues immediately: Problems handled well build loyalty
Increase Visit Frequency
- Daycare add-ons for boarding customers
- Grooming services
- Training packages
- Loyalty programmes with meaningful rewards
Upselling and Cross-Selling
| Base Service | Upsell Opportunity |
|---|---|
| Standard boarding | Premium suite |
| Boarding only | Add daycare activities |
| Overnight | Extended checkout |
| Any service | Grooming before pickup |
Train staff on natural upsellingânot pushy, but informative.
5. Fill Capacity Gaps Strategically
Most kennels have predictable slow periods. Fill them intentionally:
Analyse Your Patterns
Track occupancy by:
- Day of week
- Week of month
- Season
- Room/run type
Identify consistent gaps.
Targeted Promotions
| Gap | Strategy |
|---|---|
| Midweek lows | Weekday discount packages |
| January slump | âNew Year, New Routineâ daycare push |
| Post-holiday drop | Loyalty member exclusive rates |
| Specific room types empty | Upgrade promotions |
Diversify Services
Services that fill different demand patterns:
- Daycare: Fills weekday mornings
- Grooming: Appointment-based, fills staff downtime
- Training: Can run during slower periods
6. Invest in Marketing That Works
Stop guessing. Measure marketing effectiveness.
Track Acquisition Sources
Ask every new customer: âHow did you hear about us?â
Common sources:
- Google search
- Google Maps/local listing
- Referral from friend
- Social media
- Veterinarian recommendation
- Drive-by/signage
Calculate Cost Per Acquisition
Marketing spend on channel á New customers from channel = CPACompare CPA across channels. Double down on what works; cut what doesnât.
Focus on High-ROI Activities
Typically highest ROI for kennels:
- Google Business Profile optimisation (free, high impact)
- Referral programme (low cost, high-quality leads)
- Email marketing to existing customers (low cost, drives repeat business)
- Local SEO/website (medium cost, compounds over time)
- Vet partnerships (time investment, quality referrals)
Lower ROI typically:
- Newspaper ads
- Broad social media advertising
- Sponsorships without clear tracking
7. Scale Operations Before Scaling Capacity
Before adding runs, maximise what you have:
Operational Efficiency
- Software investment: Automate booking, billing, communication
- Staff training: Cross-train for flexibility
- Process documentation: SOPs for consistency
- Equipment upgrades: Reduce cleaning time, improve safety
When to Expand Capacity
Expand when:
- Consistently 80%+ occupancy for 6+ months
- Turning away bookings regularly
- Demand is documented, not assumed
- Finances support the investment
- Operations are running smoothly
Donât expand to:
- Fix operational problems
- Compete on price
- Because competitors are expanding
- Without proven demand data
Putting It Together: Your Growth Dashboard
Create a monthly review dashboard:
| Metric | This Month | Last Month | Target | Action |
|---|---|---|---|---|
| Occupancy | 70% | |||
| Revenue per run | +5% YoY | |||
| New customers | ||||
| Retention rate | 75% | |||
| No-show rate | <8% | |||
| Revenue leakage | <ÂŁ200 | |||
| Marketing CPA | <ÂŁ50 |
Review monthly. Adjust quarterly.
Frequently Asked Questions
How fast should a kennel grow?
Sustainable growth is typically 10-20% annually. Faster growth often strains operations and quality. Slower growth may indicate market or service issues.
Should I expand capacity or increase prices first?
Usually increase prices first. If demand remains strong at higher prices, then consider expansion. Expansion is expensive and irreversible; pricing is flexible.
How do I know if Iâm ready to hire more staff?
When current staff are consistently maxed out, quality is suffering, or youâre turning away business due to capacity. Hire slightly ahead of need rather than in crisis.
Whatâs the biggest growth mistake kennels make?
Expanding capacity before proving demand and optimising operations. Many kennels add runs, then struggle to fill them, then cut prices, then canât afford the debt.
How important is technology for growth?
Essential. Manual systems break down at scale. Software enables data tracking, operational efficiency, and customer experience improvements that manual processes canât match.
Conclusion
Growth comes from understanding your numbers, optimising what you have, and expanding strategically. Resist the urge to grow for growthâs sake. Instead:
- Measure everything important
- Fix revenue leakage
- Maximise customer lifetime value
- Fill capacity gaps
- Market based on data
- Only thenâexpand
The kennels that thrive long-term grow deliberately, not accidentally.
Related reading: Financial Management for Pet Business, Dog Boarding Pricing Strategies, Marketing Dog Daycare & Boarding

