Do you run your pharmacy business with purpose? Or do you leave things to chance? To luck? The answer to this question is almost certainly that you have intent and purpose behind how you operate your pharmacy. But sometimes it feels like the circumstances beyond your control are making life harder.
It’s easy to encounter challenges or windfalls and see them as simply bad or good luck. Things that happened not by design or through any sort of purpose, but through happenstance. It’s also not remotely helpful for anyone’s long term success.
If there are a few areas of your pharmacy business that seem a bit out of your control lately, you’re definitely not alone. However, there are some things you can to do change the narrative. You might not find a pot of gold, but you can improve cash flow and turn a tidy profit.
Pricing Models
Historically, rebates have offered a powerful benefit for pharmacies. With so much competition for pharmacy business, rebates offered an incentive. Today, a rebate model could impact your cash flow negatively as the money is coming from someone else’s account at a future date. One solution to this problem is to step away from a rebate model and go instead with the invoice price. Going with what’s on paper and what you’re billed at allows you to know exactly what you’re paying. You can learn more about transparent pricing models here and then hear the real world success story from Pharmacist/Pharmacy Owner Joe Daugherty here.
Your pricing tables might be another great place to look. Check out Robbie Stokes’ pricing table strategy that’s tailored to improve your pharmacy gross profit margin.
Reclaim control of your front end.
Your front end is one place where you have complete control of your pricing, your margins, your stock; everything. For many pharmacies, the front end has seen better days, but even a small front end can be profitable by implementing a nutrient depletion program. For example, you only need to carry a small range of supplements to get started. Pharmacist and SolutuionsRx founder Chris Cornelison is an expert on how to build successful, profitable nutrient depletion programs. Check out his essential guide and unlock a new revenue stream in your pharmacy.
Outside of supplements, even a small number of SKUs can offer a solid return on investment if you understand your inventory turns, GPROI and other key data points that can help you carry the products that can make you the most money.
Clinical Services
We already mentioned one clinical service, nutrient depletion. There are so many other services that you can tap into to create new streams of revenue and develop better relationships with your patients. From disease state management to remote patient monitoring, behavioral health integration and nutritional services. If you’re new to clinical services, or looking to expand your programs, check out this panel featuring Pharmacists and pharmacy owners Amina Abubakar and Jim Cammarata along with Pharmapreneur Academy founder Blair Thielemier.
P.S. Our March 10th 2022 CLIMB will feature a deep dive into remote patient monitoring with Amina Abubakar and Bob Lomenick. Check out our CLIMB page for more information on registration and to see our latest content on clinical services!
