Growing your community pharmacy can be tricky work. Faced with fierce competition, loads of red tape, and declining profit margins, many community pharmacies are taking on those shrinking profits with an end goal of growing their business, and profits, in the coming year.
From reducing overhead to increasing front end sales to focusing on customer service, there are several ways you can grow your pharmacy, and increase your profits. That’s why we’ve put together this list of the top five ways your pharmacy can catch a profit boost in the new year.
Tips to Grow Your Pharmacy:
1. Reduce Your Overhead – Overhead costs can eat up a lot of an independent pharmacy’s profits. Finding ways to cut your overhead means more profit. Some ways to cut overhead include:
- Maximize staff management
- Trim administrative costs
- Get quotes on insurance premiums
- Have maintenance stay on top of repairs that can end up costing more money
2. Focus On High-Profit Front-End Products – Just like any other product, some front-end items generate more profit – and sales – than others. Try designing your front end around products such as:
- Vitamins and supplements
- Diabetic supplies
- Compression stockings
- Humidifiers and cold remedies
3. Increase Medication Adherence – A medication synchronization program can help cut costs. Through more efficient operations, staffing costs can be kept in check. Further, by implementing medication delivery as part of your adherence measures, you’ll save money on delivery costs by driving fewer miles.
4. Focus On Customer Service – According to a JD Powers Pharmacy Study, friendly and trained staff where a key player in increasing front-end sales and profits. Further, friendly staff helps foster a strong sense of customer loyalty, which can be a great boost to your bottom line.
5. Stay On Top of Your Inventory – The less you spend on goods, the better. That’s a given. Knowing what your customers buy and want to buy is the first step in making sure your inventory matches your community’s needs. Negotiating better contract pricing and making sure your products are going out the door instead of back into stock can help increase profits.
Shrinking profits happen. But they don’t have to continue. Your pharmacy may not have the leverage it used to have with third party reimbursement rates, but that doesn’t mean it’s impossible to boost your pharmacy’s profit through creative and out-of-the-box thinking.
Has your pharmacy found a way to boost profits in the wake of shrinking profit margins? Are you focusing on high-profit, front-end merchandise that brings the customers through the doors? Do you have a strategy or tip you want to share? How has your pharmacy’s profit improved –– or not –– after the changes you implemented?
We’d love to know and may even share those experiences in future blog posts, white papers, and e-books. If you’d like to add your experience, please contact Jessica Gardner.
And, of course, be sure to subscribe to our blog for more tips, insights and bulletins that can help grow your pharmacy and save you money – all from your partners at AlliantRx.