How to increase the profitability of the pharmacy is one of the main concerns of most professionals in the sector. It is not for less! The future of the business and all the strategies and improvements that can be carried out depending on profitability. However, although pharmacies are often a profitable business model, the desired levels are not always achieved, or we are confident that these can be improved.
Some ideas to increase the profitability of a pharmacy If this is your case, and you are looking for how to increase the profitability of your pharmacy office, in this post we leave you some ideas so you can get going and achieve your goals.
1. The exhibition of the products and the visual merchandising in the pharmacy
Product display and display techniques are key to increasing the profitability of your pharmacy. We start from the basis that a non-visible product is a product that will not be sold. Unless, of course, we are talking about prescription products, which are not exactly the ones that leave the most margin. In this way, you must ensure that the products with the highest profitability occupy the most important positions in the pharmacy or at least, in your pharmacy furniture, as well as those others that, due to seasonal circumstances, may make us increase the average basket, such as, for example, sunscreens in summer.
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To draw the attention of your customers to the products on display, you can make use of the decoration and design of the pharmacy. Reserve, for example, the most illuminated areas for the products to which you want to give greater visibility or an area for promotions that allows you to increase the rotation of certain products.
The design of the furniture and its accessories is essential to organize the customers’ journey through the pharmacy, directing them to the areas that are of our greatest interest and displaying the products in a space suitable for them. 2. Diversify your income and bet on cross-selling at the pharmacy Related to the previous point, a good idea to increase the profitability of your pharmacy is to incorporate new sections and product lines. The concept of pharmacy is changing.
Customers do not only go to pharmacies in search of medicines but in search of well-being, beauty, and care. Therefore, it is essential to anticipate their needs and make what they are looking for at their disposal. In this way, for example, a dermo-aesthetic or baby care area is an area with which we can diversify our income, increase average tickets, and also cross our sales. A good selection of complementary products to what you already have available will also serve your purpose.
Although for this it is essential that you know the type of customers in your area and adjusts to the characteristics of the premises. On the other hand, if you have a small pharmacy or if you work with a limited catalog, it is important that you avoid duplications and brand overlaps. While in some categories such as sun protection it may be interesting to offer several alternatives, in others, such as medicine cabinets or daily hygiene products, it is more profitable to unify. Not only will it facilitate your daily management, but you will optimize your purchases, also facilitating decision-making for your customers. Finally, you can also make new services available to the client. For example aesthetics cabinet, personalized diets, control of health parameters or sections such as orthopedics or optics.
Communication is another key factor to increase the profitability of your pharmacy. It ranges from making the public known and interested in your products and services to the way in which the pharmacy, as an environment, relates to customers. In this way, we can say that communication is based on an appropriate brand image for your pharmacy, which conveys its personality, is coherent, and is present on a day-to-day basis. Pharmaceutical marketing can help you do this.
A good brand image can also reinforce customer buying loyalty. And this brand identity must be present in all the elements of your business: signage, uniforms … In addition, the internet and new technologies can also help you to be closer to your customers. Profiles in social networks where you can inform about the latest discounts and news, email marketing shipments, loyalty programs.
And, if you have enough space, you can also choose to organize talks, product presentations, or demonstrations. Surely more than one manufacturer will be happy to help you!
4. Plan and manage purchases and stock
Stock control is a key aspect to improve the profitability of a pharmacy. If our pharmacy has more stock than it needs, we may incur maintenance and conservation costs, more difficulties in its management, and expose the pharmacy to theft and loss of products, which, due to expiration, must be discarded. On the other hand, a stock below the necessary one can lead us to lose sales, also trust with our customers.
In this way, in terms of stock management, we recommend that you maintain a philosophy of buying to sell and not selling to buy. The difference? In the latter, sales are perceived as the means to meet the economic obligations of the company, the way in which to acquire new stock. While, in the first, the orientation is totally focused on the client.
In it, we buy to satisfy their needs, to have the products they demand or need before they even demand them. But, how to control the stock properly to increase the profitability of the pharmacy? Well, the key in the first place is to know our needs, turnover, and key categories. Also, keep an eye on innovations and be open to buying new products. Of course, evaluating new cold purchases. The suitability or not of increasing our purchase volume to get discounts and without falling into empathy towards commercial visitors.
5. Purchasing groups and pharmacy groups
Associating with a purchasing group can be a good idea, depending on what cases, to improve the profitability of your pharmacy. In these groups, pharmacies obtain products and services in common, professional, and commercial exchanges and, above all, optimize their stocks by achieving better prices and purchasing conditions.
The equipment of the store is also very important. Remember that it is a necessary choice, as you need to find a leading company that specializes in-store equipment. Level up your business and select people with experience and good reviews.
Remember that your hard work and strategy design with realistic goals will bring you closer to success. Trust people and partners who have the same vision as you and evaluate your every move. Get informed about all the current events and closely investigate the competition. The competition will push you to become even better in all your professional steps.
6. Managing people and processes
One of the most important aspects of managing a pharmacy is the staff. It is the workers who interact with customers, who earn their trust, recommend products or even generate some cross-selling. In the same way, they are the ones who carry out most of the processes, so training and information on the pharmacy’s objectives are key to achieving improvements in this regard.
In many pharmacies, especially when the best times are not going, motivation problems can arise among workers. To avoid this and improve profitability, some options may be to incorporate objective-based variable remuneration systems. An annual training plan, clearly assign tasks and responsibilities and measure and reward performance.
7. Have you thought about reforming your pharmacy?
According to the magazine infosalus.com, reforming a pharmacy can increase its business volume by up to 23%. Even 34% if we talk about the sales of non-prescription products. The benefits would begin to be noticed from the first year and would multiply, especially throughout the second. In addition, the report also concludes that the refurbished pharmacies increase visits by up to 14%.
However, the pharmacies that did not undertake any reform, the study concludes, registered practically no improvement in these indicators. In this way, although the reform of a pharmacy is an investment to consider, we must not lose sight of the many benefits it can bring.
Make sure your pharmacy stands out. The right marketing is the key as the internet is now the first choice of the people. Make sure you have a great website with all the useful information you need to keep your customers informed. In case you are dealing with e-commerce then here things are different and you will need the help of professionals.
Ready to increase the profitability of your pharmacy? Now that you know all these ideas, it only remains to get with them. Many times the profitability problems of a pharmacy, or the points to improve are a matter that involves more than one process or area of the company. For this reason, we recommend that you start little by little, by the points that are easiest for you. You will soon notice improvements in your results!