There are more pets than people in U.S. households, and businesses are continually crafting ways for humans to spend more on their four-legged friends.

By MarketWatch

Few pet owners consider the years of spending ahead of them when they first pick up that puppy with the limpid eyes, but the costs can add up quickly.

U.S. consumers spent $36.3 billion on their animals in 2005, up from $17 billion in 1994, according to the American Pet Products Manufacturers Association. That jump hasn't been fueled so much by pet-cost inflation as by human shopping weakness.

"There's a whole lot of new ways to spend money that you don't need to," said Stephen Zawistowski, the executive vice president for national programs at the American Society for the Prevention of Cruelty to Animals in New York.

"All of the basic stuff you need for your dog or cat -- they haven't really changed," Zawistowski said, pointing to good food and veterinary care. "(But) all of the other bling that's come out -- that's for you; it's not for your dog. Your dog couldn't care less whether you got a Gucci collar."

Though prices for pet supplies generally have risen slower than the overall inflation rate in recent years, pet-services costs, including veterinary and grooming, rose more than 5% a year from 2000 through 2005, according to the U.S. Bureau of Labor Statistics.

Pet-food costs, after rising just 0.4% in 2005, appear ready to complete this year more than 4% higher.

Rising costs aren't stifling Americans' desire to own pets: About 63% of U.S. households own a pet, up from 56% in 1998. The number of dogs, cats and other pets now totals about 359 million, according to a consumer survey by the pet-products association.

But it never hurts to save. Here are 13 ways to pare pet costs:

  1. Take care of some pet needs yourself. For instance, brush your pet's teeth regularly to reduce the number of vet dental-cleaning visits, which can run about $200. Also, ask your vet about trimming your pet's claws, Zawistowski said. "That runs up real fast, and it's not all that hard to do." In addition, if you regularly brush your pet's coat, you'll reduce grooming costs, and "your cats will have fewer hairballs," Zawistowski said. If your dog is prone to ear infections, ask your vet how to clean your dog's ears.

  2. Ask your vet whether that annual vaccination is necessary. The American Animal Hospital Association changed its guidelines, recommending that "a number of the core vaccinations (be done) every three years," instead of annually, said Thomas Carpenter, a veterinarian in Costa Mesa, Calif., and the group's president-elect. That change was to prevent over-vaccination, but it helps pet owners save a bit, too. Carpenter's practice charges about $18 for a rabies vaccination.

  3. Shop medications. Call your local pharmacy or look online for lower prices. Walgreen (WAG, news, msgs) fills prescriptions for millions of animals each year, said Carol Hively, a company spokeswoman, in an e-mail message. When comparing prices, be sure the quantity and dosage are the same.

  4. Shop for a veterinarian by comparing fees. Carpenter's practice charges $54 for a routine visit. Nationwide, pet owners average $211 for dogs and $179 for cats in routine vet visits each year. But don't sacrifice quality, and compare the same service by finding out what that routine visit covers.

  5. Shop around for pet supplies. Don't assume the pet superstore, the local mom-and-pop or the online market has the cheapest prices. For example, a litter box cost about $25 at a large Petco outlet in San Francisco, while a small mom-and-pop store nearby charged about $18. But that Petco sells cat litter in bulk, offering a good deal.

  6. Do you really need it? "Forgo the fashion," said Jennifer Fearing, the director of economic research at the Humane Society of the United States. "Clothes and fancy bags are a completely unnecessary expense." While 80% of pet owners report buying gifts for their pets, a better gift might be some playtime, she said.

  7. Avoid emergency clinics when possible. "At most emergency veterinary clinics, almost every procedure and medication and boarding fee is marked up," Fearing said. "If it's an emergency, go. But if it's between 8 and 5 and your regular veterinarian is open, give a call and ask for advice."

  8. Consider pet insurance. Check the policy's exclusions carefully to see how well it would fit your lifestyle. Some "plans cover every routine visit, every vaccination," with premiums of about $25 to $30 a month, but you don't necessarily need insurance for costs you know you'll incur, Fearing said. Pet-insurance policies aimed at covering catastrophic events -- they usually have high deductibles and lower monthly premiums of about $10 to $15 -- make sense for more people, Fearing said. Still, consumers with problems managing their cash flow may want a plan that pays a portion of routine services.

  9. Think twice before adding pets. You might get a multipet discount on insurance, but regular costs will increase. "There are not huge economies of scale with multiple pets. When you look at the big-ticket items -- food and vet care -- those are items that every animal needs in their own right," Fearing said.

  10. Save for end-of-life care. "End-of-life issues could run $500 to $1,000," said Catherine Williams, the Chicago-based vice president of financial literacy at Money Management International, a credit-counseling firm in Houston. Some insurance policies cover the cost of euthanasia and cremation.

  11. Don't buy the cheapest food. Higher-quality food helps keep your pet healthier, and you might save on training costs, Fearing said, as cheap food with fillers can lead to hyperactivity.

  12. Don't overfeed. Many people feed more than the package guidelines, Zawistowski said. Feeding the right amount saves on food costs -- which average about 40% of a pet owner's total costs -- and reduces the likelihood of obesity-related ailments.

  13. Spay or neuter your pet. "Spayed and neutered pets have fewer health problems down the road," Fearing said, pointing to prostate and ovarian cancer. Also, once neutered, "they roam significantly less, so they're not getting hit by cars."


This article was reported and written by Andrea Coombes for MarketWatch.