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I think it is certainly viable as there are similar testing kits available for people (e.g., UTI kit, HIV kit, etc.) which can be purchased at drug stores.
But, I agree, the service sounds expensive. I think I need additional clarification to give you more guidance. You have this kit with all this stuff - is the $125 per every kit? Does the kit include actual testing at the lab? Basically, does the dog owner have to pay $125 every time they want tests run and does the kit only provide enough stuff for one time testing? What about economies of scale? Generally, when you take that into account, the price can be lowered much more.
Also, why would you target just people? Why not vets themselves? I'm sure they want to save money for their customers too.
You should talk to animal owners - I know many of them would spend a lot on their animal. Can this be used for horses too? Those owners would spend anything! I would recommend that you go to some animal forums to get some market information (fyi, you may need to contact the forum owners to make sure you can post and ask). But, given that people spend hundreds of dollars on clothes for their animals, they would probably pay for this. Or, if that doesn't work, if you have everything together - get a website up, advertise, and see if people buy. If not, lower (or even raise) the price and see what happens.
Oh also, there are companies that advertise on tv about selling medication for animals that people can get at the vet but it's more expensive. You may want to try to get in touch with them - this sounds like something they could be interested in selling (maybe even investing?).
Best of luck! ~~~~~~~~~~~~
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