How to improve Pharmacy’s Profitability?
Pharmacies struggle to keep profit levels steady with less of their overall profit coming from medicine supplies. Pharmacies in the UK are also facing cuts from the NHS. These factors are forcing pharmacies to think more strategically about their businesses. To improve pharmacy profit margin it is recommended to look at every aspect of your pharmaceutical business, your sales team, your pharmacy location, your customers, your retail model where your largest margins are and where your slow sellers are.
Here are some tips to help you increase your pharmacies profitability.
Increasing the potential of your loyal patients is one way to work smarter. Use your PMR data to decide which products are your top sellers so that you can optimise sales. You can also discover which patients are appropriate to upsell to based on their medicine record. Know where your profits are and your losses are to gain better insight and control of your business. This increases the pharmacy's profit margin.
How to increase pharmacy profit margin? Many pharmacies have high volumes of excess stock in their stock rooms. This ties up capital and increases risk of stock becoming obsolete. Know which products are your top sellers and stock only a prime range that you know will sell. “Over 85 per cent of pharmacies’ retail profits come from a core range of 2,500 lines.’ Said Mandeep Mudhar, Director of Marketing at Numark.
The Pareto Principle states that 20% of any group produce 80% of the results. Therefore 20% of your customers are 80% of your profits. Spend more time targeting your 20%. Make more profits from your pharmacy’s loyal customers. Also know your 20% of products that you get 80% of profits ensure there’s a push to sell your top 20%. This improves the profit margin of pharmacies.
Many Pharmacies think merchandising is a once off thing. It is not. Merchandising should be done frequently to match consumer trends. How to improve Pharmacy’s Profitability?Remerchandising allows the customer to believe there is always something new and exciting to see. You can then always shift focus on what is the latest and most innovative product that people feel a sense of urgency to purchase. Another strategy in merchandising can be to create clear hotspots in your store that encourages the consumer to walk around the whole store. Then also by using Complimentary strategies where products align with other products they may be used in conjunction with you can increase sales.
Maximise EPS Repeats
Sign patients up to EPS through your pharmacy. Ensure a number of loyal customers who will come back again and again to your store increasing the opportunity for extra sales whether they be over the counter or from your front of shop. EPS repeats are worth your investment. Ensuring patient care by making their prescription dispensing a stress-free process. Ensure that there is plenty of forms and leaflets about eps repeats in your pharmacy and that patients can ask questions about nominating your pharmacy. This increases the pharmacy's profit margin.
Make sure your staff reach their full potential. Give them the correct training. Ensure your staff know where the profits are, which items sell best and which items have the biggest margins. Make sure they are trained to encourage sales and they know how to upsell on certain products. Allowing patients to feel they are being looked after by people who are knowledgeable.
If you would like help increasing the profitability of your business data today please contact RWA email firstname.lastname@example.org call IE 01 693 1433 / UK 0808 189 0617
Also check out what data analytics in pharmacy is.