Pharmacies are facing a number of challenges in the current marketplace. This includes changing regulations, increasing competition from over-the-counter products and the need for more qualified staff members to provide care. However, pharmacies can be profitable if they follow these three key strategies: working smarter by using technology to improve efficiency; reducing stockholding which is costly and takes up valuable retail space; and making sure that margins on goods sold exceed those on goods purchased (80/20 rule).
How to improve Pharmacy’s Profitability?
It is recommended to look at every aspect of your pharmaceutical business. There are three key factors that could be looked at in order to improve profitability. One way to increase profitability is for pharmacies to use technology to reduce errors and increase efficiency.
One way to work smarter is by increasing the potential of your loyal patients.
For example, grocery stores and restaurants are often frequented by the same people, so these businesses often offer loyalty cards or coupons for returning customers to help them identify their most loyal customers and encourage them to spend more. The same is true for pharmacies: if you reach out to your long-term customers with a card that offers discounts or other incentives, they’ll be more likely to develop habits of visiting your pharmacy.
Another way to work smarter is through increased use of technology in particular automated dispensing machines (ADMs). For example, ADMs can increase customer satisfaction because they allow customers to select the drugs they want without having to wait in line. In addition, ADMs are able to dispense drugs faster than a pharmacist through the use of robotics.
Many pharmacies have high volumes of excess stock in their stock rooms because they are trying to use retail space to make more profit. This is costing them time and money. However, this can be avoided by using the 80/20 rule when stocking up on inventory. According to the USAID, many pharmacies are not following this strategy which means that they could be losing out on potential profits.
The Pareto Principle states that 20% of any group produce 80% of the results. Using this principle, pharmacies can increase their profits by working smarter. This means using technology to improve efficiency and reduce unnecessary stockholding.
In addition to following the Pareto Principle, pharmacies can improve their profitability by targeting 20% of their customers. This means that they can focus on selling goods with high margins.
Stay in touch with consumer trends.
Merchandising is not a one-time thing. It should be done frequently to stay up to date on the latest styles and fashions.
Use our merchandising system to help you organize your products by color, category or brand so that it’s easy for customers to find what they’re looking for when they come into your store — all with just a few clicks.
Maximise EPS Repeats
In order to maximise EPS Repeats, it is important for pharmacy owners to find ways in which they can reduce costs. This includes reducing stockholding which is costly and takes up valuable retail space. The 80/20 rule also applies to pharmaceuticals. Pharmacies should be able to generate as much profit on goods that are sold than the amount spent on purchasing them.
Over the years, there have been a number of innovations in the business world. These include big data, artificial intelligence and automation. The pharmacy industry is changing with the times also. There are new challenges and opportunities for pharmacies in the current marketplace. This includes changing regulations, increasing competition from over-the-counter products and the need for more qualified staff members to provide care. Nonetheless, if pharmacies can follow these three key strategies: working smarter by using technology to improve efficiency; reducing stockholding which is costly and takes up valuable retail space; and making sure that margins on goods sold exceed those on goods purchased (80/20 rule), they can be successful in today’s marketplace.