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The most relevant and current collection of blogs dedicated to helping the independent pharmacy owner.

Financial Literacy for Pharmacy Owners

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Clarity in Financial Literacy

Understanding the financial health of your business is powerful. As an independent pharmacy owner, you spend an incredible amount of time running your business, but do you really understand how to leverage your financial statements? Of course, there is money coming in and money going out – but if you can successfully interpret that data, you can use it to your advantage and make more impactful decisions.

April is Financial Literacy Month and an excellent opportunity to develop a more comprehensive understanding of your pharmacy’s finances. Basic bookkeeping used to be enough, but in today’s world, a backward look doesn’t put you in a position to make the most informed decisions. Growing your pharmacy business starts with goal setting, and goal setting becomes actionable when you have the data to understand the impact on your business. 

Do any of these goals look familiar? 

  • Increasing pharmacy profitability 
  • Hiring a second pharmacy tech 
  • Expanding to a second location  

Whether these are your specific goals or if you have others on your list, the next step to accomplishing any goal is informed financial decision-making. This blog will cover three essential financial tools to run and grow your pharmacy business.

Pharmacy Financials: A Snapshot, a Movie, and a Crystal Ball  

When you know how your business is performing financially, you’re no longer in the dark about your direction. It all starts with the three reports that make up your financial statements (and tell quite a story); the Balance Sheet, Income Statement, and Cash Flow Statement. 

 We will dive into each of these below, and it may help keep three things in mind: a snapshot, a movie, and a crystal ball.  

A Snapshot: Understanding the Financial Health of Your Pharmacy 

Your pharmacy’s Balance Sheet will tell you about your assets, liabilities, and equity at a given time. Think about this: if you checked your balance before going grocery shopping, this is similar to the snapshot we mentioned above. It is helpful at the moment, but it’s no way to run a business. 

A Movie: The Ups and Downs of a Pharmacy Income Statement  

The Income Statement (also known as a Profit and Loss Statement) tells the story of your profitability over a specific time frame. When you look at your Income Statement, it will measure revenue and cost over a period. Typically, an Income Statement comes in two pages. The first shows revenue, costs, and gross profit for your pharmacy, and the second page is a detailed look at the business activity and expenses. 

Things to Consider  

  • What is performing well if you are expanding into another area besides dispensing? 
  • Are you too focused on a piece of pharmacy business that no longer makes sense?  
  • Is there an opportunity to invest in upgrading your marketing?  

A Crystal Ball: Forecasting Pharmacy Revenue and Expenses  

Financial Literacy ConfidenceMost owners pay particular attention to the Balance Sheet and Income Statement when it comes to financial reporting. The statement of cash flow is an often overlooked and underutilized tool that you can use to paint a clear picture of your pharmacy’s health. This report shows where your cash is coming in and how you’ve been using it in your pharmacy. As a result, you can leverage this information to create projections and identify trends in your business. Ultimately, understanding your cash flow is key to your financial success.

Financial Literacy for Pharmacy Owners 

So how do you get started? If you have an accountant or bookkeeper, set an appointment to review these three financial statements. Using your data can be a daunting task, but that is where the exponential improvements start to happen. Ask them to compare your finances against industry benchmarks.

 For example, some good questions to ask are: 

  • How much inventory should I be carrying? 
  • Are my payroll expenses in line? 
  • Are my accounts receivable where they should be? 

It also helps if you track pharmacy-specific Key Performance Indicators (KPIs) to understand the financial health of your pharmacy. A few examples are:

Your pharmacy’s Total Gross Margin should be >24%
When your business is not run to maintain this KPI, you may not be able to generate enough cash to cover operating expenses.  

Your pharmacy’s Total Expense Ratio should be <19%
Understanding how much of every dollar you earn covers operating expenses is key to ensuring you won’t run into cash flow challenges. 

Learn more about how to get started tracking pharmacy KPIs. A strong foundation in financial literacy and knowing where you stand allows you to set a course for improvement. For a more comprehensive breakdown and tools to get you started, download the e-book, Your Financial Health: A Guide for Pharmacy Owners. At PDS, your success is our win. The PDS Financials team is here to help expand your business; schedule a time to talk to one of our experts today.  

Open Enrollment Best Practices

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The final quarter of 2021 presents many opportunities for independent pharmacy owners. With Open Enrollment Season now underway, what plans have you made to assure your patients and your pharmacy are set up for success in 2022? Not sure where to start? Medicare’s Annual Enrollment Period (AEP) is a tremendous opportunity to keep your pharmacy top-of-mind and help patients save money on their prescription benefits.  

Opportunities Associated with Open Enrollment

Engage Current Patients Over Current Plan   

A July 2021 study found that 94% of Medicare beneficiaries are not on the most cost-effective plan. Your patients should see your pharmacy as a valuable resource for health and wellness solutions, including your input on Medicare Open Enrollment. Make sure you are keeping current patients engaged by helping them through this important but challenging process of Open Enrollment.  

Focus your efforts on: 

  • Newly Eligible Patients 
  • Low Income Subsidy (LIS) Patients 

Attract (And Transfer In) New Patients  

Use social media to your advantage as you advertise the patient-centric services at your pharmacy. For example, create a link for new patients to schedule a Medicare consultation. Highlight the impact the right plan can have on their personal finances, help the patient understand their options for coverage and take the opportunity to share some of the other services you offer, such as immunizations and Medication Reviews. Social media is a great way to drive awareness for the products and services that will help patients take control of their health and wellness.  

+1 – Educate and Provide Immunizations 

Since our February virtual conference, PDS has been encouraging pharmacies to leverage the +1-concept introduced by Tiffany Hatcher, Clinical Assistant Professor at Duquesne University School of Pharmacy. Anytime that you have an opportunity to share, educate or immunize a patient while they are in your store, seize the opportunity. As patients come in for Medicare consultations apply the +1 concept to any of these valuable immunizations.  

  • FLU: Vaccinations for the 2021 flu season are underway and will help keep your patients healthy. Medicare-eligible seniors are a vulnerable population;, help your patients by giving them their flu shots at the consultations. No need to come back, one visit is all you need to provide multiple solutions. 
  • COVID19: Symptoms for the flu and COVID are similar, take the stress out of flu season for your patients. If they have not been vaccinated, this is another opportunity to keep your patients safe.    
  • SHINGLES: Quarantine restrictions contributed to a decrease in necessary vaccinations last year. Help get your Shingles vaccine-eligible patients up-to-date. 
  • MEDICATION REVIEW: Managing prescriptions is a critical component of patient care. Take this time to help your patients review their medications and confirm which of their prescriptions should be listed as active or inactive on their patient profiles.  

Pro-Tip: Do you have a medication disposal program? Let patients know that is a solution you offer. It eliminates accidents and reduces the likelihood of the prescription ending up in the wrong hands. If you do not offer this solution, you can still provide value. Check out this Dispose My Meds search tool from NCPA (National Community Pharmacists Association). 

Best Practices During Open Enrollment 

Start Marketing Open Enrollment Consultations Early  

Start marketing Open Enrollment Services mid-September. As different mailers arrive for Medicare Part D patients, questions will begin to arise regarding their plan choices. Do not forget to train your team on ways to organically start these conversations and escalate them to the appropriate staff members as needed. 

Open Enrollment Marketing Ideas:  

  • Bag stuffers can also help get the word out about your services. 
  • Use signage around your pharmacy to advertise consultations and other patient services. 
  • Post to social media! Video is a fantastic way to get in front of your target audience. Need social inspiration? Check out this list of social media ideas.  

Let your community know early on that your pharmacy is a valuable resource for evaluating prescription drug coverage options.  

How DIR (Direct and Indirect Remuneration) Fees Will Impact Your Business?   

FDS Amplicare offers powerful tools to help you understand the DIR impact. Many pharmacy owners have used it to generate WIN-WIN opportunities during the open enrollment period. As a result, FDS Amplicare users reported average patient savings of $480/ year and increased profits of over $200/per participating patient. If you are not familiar with Amplicare Match opportunities, reach out to your PDS Member Success Team today.   

Prioritize Low Income Subsidy (LIS) Patients 

Medicare Part D Extra Help or Low-Income Subsidy program helps many pay for prescription medications. Your pharmacy staff can help enrollees identify Medicare Part D plan offerings that are available and applicable.  

Reduce Workflow Struggles with Appointment Setting   

Make it easy on your team and your patients with an appointment scheduling tool. COVID accelerated the shift to the appointment-based pharmacy model, and the feedback has been unanimously positive. Pharmacies are seeing improved adherence and experiencing higher efficiency in their operations.  

A Few Suggestions:  

  • Do Not Over Engineer the Process – Find a Simple, User-Friendly Solution  
  • Set Up Confirmation Email or Text Reminders 
  • Think About Additional Services You Can Book During the Consult 

 Cross-Promote Nutrient Depletion Solutions  

Remind your patients of the various healthcare solutions at your pharmacy. Prescription profile updates and comprehensive medication reviews allow you to identify possibilities for Nutrient Depletion solutions. Make appropriate OTC (Over-the-Counter) recommendations. Do not forget to train your team in this area as well, you should feel comfortable that anyone on your team can provide the right solutions for the patient.  

Referrals and Recommendations are Critical 

JD Power, a global leader in consumer insights, determined that 80% of patients will utilize a service if their physician recommends it, and 75% will utilize a service if it is recommended by their friends and family. This means referrals influence your pharmacy’s reputation, profitability, and role in the community as a trusted resource.     

Setting Goals for Annual Enrollment Period (AEP) 

An ideal goal for enrollment is 1.5 patients per day. Involve your team during the goal-setting process and have a visual tracker in the pharmacy. A visual reminder will keep these ideas top-of-mind for your team. Three hundred locally-owned pharmacies around the US have been recognized for taking an active role to ensure their patients enroll in the plan that best fits their needs. Could your pharmacy make the list next year?    

Click below to watch our recent webinar replay AEP WIN-WINS: Saving Patients Money, Increasing Loyalty and Profitability.

Ready to learn more about PDS? Contact us today to get your pharmacy set up for success during the 2021 Medicare Open Enrollment Period!  

 

pds super conference

Inspiring Speakers | PDS Super-Conference

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February 2022 is fast approaching, and next year’s back-in-person Super-Conference is one you won’t want to miss. Join us on February 17-19, 2022, for three inspiring days focused on providing actionable solutions to the actual pressures you face every day running your pharmacy. Our inspiring speakers over the past 17 years is just part of the reason why this event needs to be on your calendar for 2022. 

  • Revitalize and Inspire Your Team
  • Improve Pharmacy Profitability
  • Learn About the Newest Patient Programs
  • Connect with the Most Innovative Minds in Pharmacy

The Annual PDS Super Conference is the most actionable and impactful pharmacy business conference you can attend, so don’t miss your opportunity to realize your pharmacy’s full potential.  

Note that the Super-Conference is not for everyone. For the past 17 years, we have built the premier event for independent pharmacy owners committed to growing their business through actionable content, inspiring connections, and pharmacy experts. If you’ve found yourself backed into a corner in your independent pharmacy but you’re determined not only to stay in business but to see your pharmacy thrive, then the PDS Super-Conference is for you. 

As a Super-Conference attendee, you’ll be privy to exclusive independent pharmacy success strategies shared by industry and thought leaders from across the country. You’ll also hear from other independent pharmacy owners just like you who have turned their businesses around using a PDS-supported approach and the dedicated PDS coaches who work with owners and their teams to implement targeted strategies.

 As we look forward to another year of growth for our community of independent pharmacy owners and their teams, we would like to highlight some of the motivational speakers we’ve had at PDS Super-Conferences in the past. 

Inspiring Speakers from Past Conferences

inspiring keynote speakers from the PDS Super-Conference

John Maxwell  

#1 New York Times bestselling author, coach, and world-renowned leadership expert John Maxwell took the stage in 2018 to talk about the Five Levels of Leadership. His thoughtful leadership principles were skillfully translated into valuable insights that helped attendees become stronger leaders in their pharmacies.  

Amanda Gore

We were honored to have leadership, communication, and relationships expert Amanda Gore present in 2019. Amanda taught Super-Conference attendees how to develop a modern sales mindset, what it means to listen properly and create non-verbal connections, best practices for operating in your role as a cornerstone in the community, and how to overcome challenges and roadblocks with non-traditional revenue streams. 

Tom Wheelwright

Tom Wheelwright, CPA is the CEO of WealthAbility. As a returning speaker at the Super-Conference, he advises pharmacy owners on all things tax. He discussed the new tax law and how it affects independent pharmacy owners. Tom also helps identify important tax deductions most pharmacy owners overlook.

 These relevant and inspiring speakers all left an incredible mark on our audience. In fact, attendees were so captivated that 91% said they are extremely likely to attend the 2022 PDS Super-Conference to see what remarkable strategies and outside-the-box thinking the next event will bring.  

All of the PDS Super-Conference keynote speakers must have an innovative mindset with the heart of an independent pharmacy owner. We seek out the best of the best with industry knowledge and expertise that translates directly into building cohesion, driving sales, and improving your pharmacy’s community reputation.  

2022 PDS Super-Conference

Of course, we know the proof is in the pudding. If you’re on the fence about registering for the 2022 PDS Super-Conference, then we invite you to listen to emotional success stories from some of our members. You can access these PDS member testimonials here. The independent pharmacy owners we’ve acknowledged here have applied PDS strategies to transform their pharmacies from a place of minimal profit or deficit to a thriving community healthcare hub. You’ll hear more stories like these at the Super-Conference. 

We’re currently finalizing our list of 2022 keynote speakers and we can’t wait to share them with you very soon. In the meantime, secure your seat at the 2022 PDS Super-Conference here. Tickets are on sale now so don’t wait.  

 

A Pharmacy Owner’s Guide to Getting Started on Social Media

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Building a digital presence for your pharmacy is essential in this booming era of technology. Since the pandemic, more people than ever are using social media to stay connected with their communities. If you haven’t yet developed one or more social media pages for your pharmacy, then now is the time to start. In this guide, we’ve compiled everything you need to know to get your pharmacy started on social media. 

social media independent pharmacy getting started

Identify Your Audience 

Before you build your page, you need to know who you’re speaking to. You may have a narrow audience, such as elderly members of your community with long-term healthcare needs, or you may be targeting a broader range of potential patients. Whatever the demographic you are targeting, you need to know who they are so you can adapt your images and messaging to capture their interest and encourage them to engage with your pharmacy. 

Be Relevant 

Yes, you should absolutely incorporate posts about your newest line of vitamins and supplements and expanding range of healthcare services. In fact, we recommend you post every time there is a notable change happening in your pharmacy, whether you are adding a new team member or changing the way you display your products to make it easier for patients to navigate your store. However, you want patients and potential patients to engage with your page even when they aren’t focusing on their healthcare needs. In addition to business-related content, stay current with community news and events and be sure to post about these on your pages too. This is also a great way to encourage other local businesses to share your posts with their prospective audiences. 

Observe Your Competitors 

A great way to build your audience quickly is to find your competitors on social media and observe how they are connecting with their audiences. Investigate the pages they are subscribed to and the hashtags they are using. If any of these are relevant to your independent pharmacy, start incorporating them into your own social media marketing strategy. As you navigate through each affiliate page, keep an eye on the related and suggested pages that come up and assess whether these would be a good opportunity for your pharmacy to reach more patients as well. Remember that your competitors may not be targeting exactly the same pool of prospects, so keep the audience you identified for your pharmacy top of mind as you perform each assessment. 

Keep It Visual 

A vibrant image is far more likely to capture the attention of potential patients than a lengthy post. Be sure to include eye-catching photos and graphics with every post you make to maximize the potential for engagement. You can use images from your own collection or purchase stock photos and graphics online from sites like Shuttershock and Fiverr. You can also explore free imagery sites like Pixabay. 

Drive The Conversation 

Social media is all about starting and maintaining conversations. Whether you are engaging with your audience in the comments section of your post, on a page you follow, or in your direct messages, it is essential that you engage and drive the conversation. A conversational tone is key in all of your social media engagements because this makes you far more approachable to potential patients. In time, you should develop an online tone that is unique to your independent pharmacy and helps you stand out. 

Use a Social Media Dashboard 

As you expand your online presence, moving between platforms can become quite time consuming. Investing in a social media dashboard like HootSuite or Social Oomph can help you pre-schedule content and make the most of your social media marketing efforts. Tools like these help improve your time management so you can get back to doing what you do best. 

Get Started Today! 

With our exclusive list of 20 social media ideas and prompts, you’ll be ready to get started on your first posts and more. Download the easy-to-follow list here. If you’ve opted to work with a PDS coach, then reach out to them to help you brainstorm new content ideas. If you have not yet gotten started with a PDS coach and would like to elevate your business this way, schedule a call with us today. 

 

What Does It Mean to Manage Inventory With Purpose?

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Inventory management has a huge financial impact on your independent pharmacy. When your inventory isn’t being managed in an optimal way, it means cash is sitting on your shelves instead of in your pocket. This significantly restricts your cash flow and the ability to settle everyday expenses.  

Today, we are going to crack the code on inventory for your independent pharmacy. We’ll do this by highlighting common mistakes, exploring best inventory management practices, and setting attainable goals for inventory turns. 

pharmacy inventory management

The PDS benchmark is 16 inventory turns per year. To us, this indicates that inventory is being optimally managed. Some of our members have even exceeded this goal.  

To achieve this goal, you need to know the ‘why’ behind your inventory levels. For many independent pharmacy owners, the reason is simply that they need to have the right products in at the right time. If you don’t have the right product in, you can’t dispense it. However, if you have too much of a product, it’s sitting on the shelf tying up your dollars. Taking control of your inventory means establishing best practices for satisfying your ‘why’ without overcompensating.  

Some of the most common reasons for low inventory turns are a lack of proper policy and procedure, improper medical synchronization program, and a lack of team education. 

The Impact of Inventory Control 

In an ideal world, you would order your inventory and close up at the end of the day with nothing on your shelves and have no out of stocks. You would open the next day and have the same result. Although this isn’t a realistic goal for most pharmacies, it’s an important image to keep in mind when managing your inventory. When you optimize your inventory management with this in mind, you’ll experience greater operational efficiency, improved cash flow, and enhanced employee and patient satisfaction.  

Creating a clear and straightforward process around inventory management unlocks operational efficiencies. Providing standardization of processes and reducing duplication of work allows you to reassign pharmacy duties and tasks to improve workflow.  

Unnecessary inventory sitting on your shelf means fewer dollars in your pocket. When you manage your inventory with purpose and intention, reduce overstock, and increase inventory turns, you will generate greater cash flow for your pharmacy. This also means you will lose less money on outdated stock.  

Employees and patients alike will experience greater satisfaction when you take control of your inventory. Staff will be less anxious and patients will deem your pharmacy more reliable when there are fewer out-of-stock products. Watch your pharmacy team thrive when you give them the opportunity to take ownership of this process. 

Inventory Considerations 

As you dive into optimizing the management of your independent pharmacy’s inventory, be sure to consider each of these three areas separately: your medication inventory, your OTC inventory, and your supplies inventory. 

Medication inventory is your main area of consideration because it has the highest value, meaning it has the greatest impact on your cash flow and your bottom line. In a poorly managed inventory, employees will allow your medication inventory to grow out of control to avoid out-of-stock concerns. In an optimal inventory management system, you have calculated the required number of each item to have on hand and your team simply needs to respond to the plan you have in place. 

OTC inventory is important to your pharmacy’s financial health, but it can be easy to forget about. Use the same approach to your OTC inventory management as you do with your medication inventory and don’t hesitate to remove items that don’t sell. You can also take this opportunity to add higher margin OTC items. Think about what your customers are looking for and what you can offer to make your pharmacy stand out. 

When it comes to supplies, your needs will vary based on the nature of your pharmacy. Assess your pharmacy’s unique needs and consider ways to increase efficiency in your supply chain. In your office, this may mean investing in a more energy-efficient printer that takes a less expensive toner. For packaging, you may explore a more cost-effective option for vials and labels. 

Take Control With PDS 

Your inventory metrics and goal setting should not be left to guesswork or trial and error. In fact, when you work with a PDS coach, you’ll have access to calculations and members-only documents to take control of your inventory management. Our worksheets include an inventory control worksheet, an inventory reduction worksheet, and an inventory calendar that will all help you optimize your inventory management and free up much-needed cash resources. Book a free consultation with us today to get started. 

 

See How This PDS Member Pharmacy Slashed Their Inventory By Half 

Watch Webinar >>

What Do Pickles and Customer Service Have in Common?

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All too often, pharmacy owners fail to understand the importance of excellent customer service. Don’t make this mistake, as it can be incredibly detrimental to your business. Gaining and retaining customers is an important part of keeping your doors open, and owning a pharmacy probably wouldn’t be very rewarding without customers coming in. Regardless of the size of your pharmacy, excellent customer service should be at the heart of your business. So, how do you go above and beyond to give customers extraordinary customer service that they can’t find anywhere else?

Bob Farrell is an entrepreneur, author, and motivational speaker whose infectious attitude about delivering exemplary customer service has changed the way that countless businesses treat their customers. Bob’s customer service mantra “Give ’em the Pickle!” was born from a letter he received years ago when he opened the very first Farrell’s Ice Cream Parlor in Seattle, Washington. In that letter, a loyal customer vowed that he would not return to Farrell’s restaurant because the waitress wouldn’t give him an extra pickle—unless she charged him.

Can you imagine losing a loyal customer over a pickle? Giving away “pickles” is a way for any company to keep their customers happy, exceed customer expectations, and differentiate itself from competitors. So let’s talk pickles.

What it means to “give ’em the pickle.”

Pickles are those special or extra things that you do to make your customers happy and keep them coming back. A “pickle” could be a handwritten thank you note with every order shipped or walking a customer to the item they’re looking for instead of just pointing them in the right direction. A pickle could be calling your customers by name or answering the phone with a smile and positive attitude. Every little thing counts and every effort helps improve a customer experience. If it makes the customer feel good about themselves and their visit to your pharmacy – it’s a pickle.

The trick is to figure out what your customers want and then to make sure they get it. Find those simple extra things that make customers happy. In his book, Farrell points out the common sense that seems to be not so common in this day and age. In fact, the art of customer service is in danger of becoming extinct. Just walk into any big box store and you will likely experience this for yourself. It is important for every business owner to remember that without customers singing your praise, your doors won’t be open for too long. Providing excellent customer service is not hard, but it can be frustrating and even challenging at times. Bob points out why putting your frustrations aside and seeing the challenge as an opportunity to take care of the customer will make your business the best that it can be for years to come.

4 Key Principles of Customer Service

If you’re interested in raising the bar on customer service (and who wouldn’t be?), there are four key principles that will help you keep your customers coming back time and time again:

  1. Service: Make serving others the number one priority. Great customer service happens when you exceed customer expectations by adding your special touch and by having the courage to make things right.
  2. Attitude: Choose your attitude. How you think about the customer is how you will treat them. A shining attitude is contagious and shows in the quality of your work.
  3. Consistency: Customers return because they liked what happened last time. Set high service standards and live up to them every day. Add your special touch and exceed expectations.
  4. Teamwork: Commit to teamwork. Look for ways to make each other look good. In the end, everything everyone does ends up in front of the customer whether you work the front end or behind the scenes.

Giving away pickles is part of providing excellent service and sets you apart from other similar businesses. Give them what they want and keep them coming back. Give ’em the pickle is a catchy little phrase that is easy to remember and relatively simple to implement. Define your pickle, share the concept with your team, and then implement the program in your pharmacy.

 

Exceptional customer service can not only lead to loyal customers, it can also transform your bottom line. In this eBook, we’re exploring ways to increase sales while creating advocates for your pharmacy.

 

 

 

 

5 Ways to Get the Most Value Out of a Virtual Conference 

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 You’ve paid for the ticket. And you’ve cleared your calendar for an upcoming virtual conference, like PDS 2021, that promises to teach you things to make life (or work) easier. Now that the pre-work is over, it’s time for the real work: making sure this virtual conference is well worth your investment.   Read more

7 Ways to Increase Non-Prescription Pharmacy Sales

7 Ways to Increase Non-Prescription Pharmacy Sales

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Prescriptions may be the number one reason patients come into your pharmacy (they are your most vital revenue source, after all). To maximize your pharmacy’s revenue potential even more, take advantage of the non-prescription sales opportunities available to you today.

Prescription profit margins have seen a decline in recent years. On the other hand, OTC or front-end product profit margins have remained consistent and strong. While prescriptions make up the bulk of your revenues, a good OTC sales strategy can be just as impactful to your profitability.

Through these seven easy-to-implement strategies, you can encourage patients to make non-prescription purchases and ultimately boost your pharmacy’s revenue.

 

how to boost non prescription pharmacy sales

1. Do Your Market Research

Just because you like a particular product, doesn’t mean everyone else does too. Don’t rely on your intuition to figure out the best ways to grow your non-prescription sales. Review data and research to determine which over-the-counter and retail products are trending. A study by Hamacher Resource Group (HRG) revealed the cold & allergy, vitamins & dietary supplements, and pain relief categories represent nearly 43% of unit sales in health and wellness.

Be sure to review your sales figures to see which product categories are most popular with your customers and take steps to make these products easier to locate in your pharmacy.

2. Use Your Pharmacy’s Floor Plan to Your Advantage

An effective pharmacy layout is optimized to display merchandise that you want patients to see and buy. Some areas of your pharmacy probably receive more foot traffic than others. For example, areas next to the prescription counter and aisles leading to the checkout registers tend to see more traffic. Rotate products in and out of these areas and at the end-of-aisle displays to see which items result in increased sales when relocated to these highly visible locations. Test different floor areas. Move merchandise around. A little reorganization has the power to influence your patients’ purchasing decisions.

3. Train Your Pharmacy Team to Cross-Sell and Upsell

A large number of drugs dispensed can cause drug-induced nutritional deficiencies. Many of the patients that walk through your door are already buying nutritional supplements. Knowing this, you should ask yourself:

  • Are they buying supplements from your pharmacy?
  • Are they buying quality supplements that are beneficial to their health?

Upselling nutrient depletion supplements is a win-win. Patients who are buying supplements elsewhere don’t normally consult a pharmacist at the time of purchase, and are often not taking the correct nutrients their body needs. For example, you make $5 selling a patient a beta blocker, and then you make $15 selling them the CoQ10 his body needs to counteract drug-induced nutritional deficiencies.

Your pharmacy team is key to this “UpSolutions” strategy. Train them to build relationships with customers and make relevant product suggestions based off the drugs patients are picking up.

This can also work for any product you sell in your store. Coach your team to be helpful and ask customers what products they are looking for, thus opening the conversation to upselling. Check out the OTC Guide, which gives you specific product recommendations based on what your patients are already purchasing.

It can also be helpful to hold weekly team meetings to inform your staff of what inventory needs to be moved, marked down, or removed.

Idea: Hold a contest and reward staff members that upsell the most products each month. For more information on upselling non-prescription products, check out the on-demand webinar: Outside the Vial: Improving Profitability with OTC Sales.

4. Build Strong Customer Relationships

According to HRG research, customer service is overwhelmingly rated as the most important competitive advantage. Consumers who  establish good, trusted relationships with their pharmacy are more likely to return compared to when visiting stores where they don’t have a personal connection. Your talented team is capable of creating an atmosphere of comfort and trust so be sure to train them to engage with customers and establish personal relationships whenever possible. Guide your staff to recognize repeat customers, greet them by their first name, or ask questions about their families, work or pets. Everyone appreciates a personal touch.

5. Stock Related Products Closely

Knowing how products relate to each other can help your pharmacy increase retail sales. For example, people who are looking for a knee brace may also need joint cream. Customers with a cold might be looking for a box of tissues. Display related products next to each other so customers can easily find what they are looking for. Don’t forget to use your pharmacy floor plan to help you determine how to position related products for maximum sales impact!

6. Be Your Own Secret Shopper

Forget everything you know about your pharmacy and walk through the doors as a secret shopper. Walk the aisles with a fresh eye and ask yourself if things look inviting. Would you continue to shop in this store? If you are hesitant, it may be time to make some changes. Updating your decor, brightening the lighting, or simply adding a fresh coat of paint can go a long way.

7. Pharmacy Customer Service That Sizzles

It doesn’t matter if you run a pharmacy or a ditch-digging company, everything begins and ends with customer service. Offering truly exceptional service is one of the best ways you can boost merchandise sales at your pharmacy. Ask the question, “Is there something we could do to improve your shopping experience and, if so, what would it be?” People love a listening ear. And their feedback is just what your team needs to make necessary improvements.

A pharmacy is so much more than just a place to fill prescriptions. It’s a place where people can find convenience products, supplements, food, souvenirs, and other household items. Knowing the most effective ways to increase sales of these items will pay off with a healthy bottom-line for your independent pharmacy.

What’s Next?

Looking for more ways to drive your most lucrative patients to your door? Download our free eBook, Pharmacy Business Blueprint today to increase your profits while providing world-class healthcare.

 

 

 

PDS Members: Log in to PDSadvantage to get access to the OTC Education and Resources page  or detailed information about how to implement clinical services in your pharmacy.

 

Pouch vs. Blister in a COVID World

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Here at PDS, we take pride in highlighting some of our incredible exhibitors. We know these companies have the potential to revolutionize pharmacies just like yours through their products and services. We’re excited to introduce RxSafe. Read on for their blog post about pouch vs. blister in a COVID world.

This year has been full of changes and challenges for both patients and pharmacists. Coronavirus has increasingly led to many patients preferring “no-contact” or “touchless” services.  

Independent pharmacists can reduce the risk of COVID-19 transmission by limiting contact between staff and patients. Listen to Kyle Lomax and Traci Bayer, RxSafe customers, explain how they are meeting this new “contactless” demand. 

 

RxSafe


Will “Touchless” be the Norm?  

 When the pandemic first started, many people thought it would only last a few weeks. Since then, the rapid and sustained spread of the virus has increased patients’ desire for limited contact, especially with healthcare professionals. 

It is clear that this pandemic will have a lasting impact on the way patients interact with pharmacists. Patients are likely to use pharmacies that offer pouch packaging and “no-contact” delivery services.  

“Our delivery has almost quadrupled,” says Lomax. “I think that our commitment to this wide radius of delivery has really made us stand out in our role, especially in our rural communities.” 

Even after the widespread distribution of the COVID vaccine — which will take the better part of a year — patients may be more likely to limit their contact in order to avoid any type of virus or illness. 

Why is Pouch Packaging Safer? 

Traditional vial filling involves many touch points that increase the risk of transmission. Even after the prescription leaves the pharmacy, there are many more touch points that occur with consumption. William Holmes, CEO of RxSafe, details how quickly the number of touchpoints can grow with traditional vials. 

“Let’s presume now a family member might be assisting someone with opening and closing their vials, that’s 30 times a month that vial gets opened and closed and sometimes pills get poured out into a hand and then the bulk poured back,” explains Holmes. “With each touch, you’re increasing the risk of disease transmission.”  

On average, there are 317,000 touch points per 1,000 patients using the manual card fill system. Using an automated pill packager reduces the touchpoints to approximately 1,140 touch points.  

Pouch packaging automation, such as the RapidPakRx, can drastically reduce touch points. When consuming their medications, patients just have to tear open one pouch. Also, pouch packaging allows for a 31-day script to be filled, decreasing contact between patients and pharmacy staff.  

“Even during COVID, we’ve had very few people go without their medications,” says Bayer, “because their prescriptions are ready almost a week before they’re due.” 


Need additional information?

Learn more about how you can create efficient operations in the midst of COVID with the PDS COVID Optimization Program.  You can also get a sneak peek of the latest PDS member town hall to hear more about how independent pharmacies are adapting their operations to best serve their patients through COVID.

 

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Are you interested in learning more about how the RapidPakRx can help your pharmacy provide “touchless” service? Visit the RapidPakRx product page for more information.  
immunization program

Starting an Immunization Program in Your Pharmacy

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Providing an Immunization Program in your pharmacy is a great way to diversify your pharmacy’s offerings and revenue streams, while also filling an important community need. Help your patients and take control back from the PBMs.

Before You Start an Immunization Program:

Consider the clinical (and business!) benefits for your pharmacy.

  • Expand your service mix beyond traditional dispensing services
  • Don’t lose prescription revenue from customers who transfer their prescriptions over to a competing pharmacy that offers core and seasonal vaccines
  • Complement and support other chronic disease management services that you offer
  • Improve the overall health status of your community and become the clinical service hub of the area
  • Support medication adherence services like synchronization

 

How do I Get Started With Immunizations?

1. Understand State Regulations Regarding Pharmacist Vaccine Administration

State regulations determine which vaccines can be administered to what types of patients. Not all pharmacists can give all vaccines to all patients.

immunization

The first step is to know what’s permitted in the pharmacy’s own state. One of the most common restrictions is age as some states don’t allow pharmacists to administer vaccines to children under age 18.

Pharmacists need to be certified to administer vaccines in the pharmacy. They are required to take an ACPE-accredited immunization (like APHA’s course). Pharmacists must also be CPR certified and take a bloodborne pathogen or OSHA training.

Another regulatory consideration is reporting requirements. Some states require pharmacies to report the vaccines given and who received them to a state immunization registry.

It is also important to consider whether a state requires pharmacists to have collaborative practice agreements with physicians in order to administer vaccines. Collaborative agreements with physicians allow eligible pharmacists to administer vaccines to patients without individual prescriptions.

 

2. Understand How You Get Paid!

Independent pharmacies are hesitant to launch immunization programs due to complex and confusing reimbursement rules that dictate how pharmacies can bill for vaccines.

This is less of a barrier with the HHS order for Pharmacies to get paid for administration of the COVID 19 Vaccines.

If a pharmacy serves Medicare patients, it must go through the process of getting a PTAN as Medicare Part B provider in order to bill Medicare for vaccines including COVID Vaccines as a medical benefit.

It’s important you automate billing and collections for vaccine services through technology by outsource billing and collections through a third-party vendor. You want too be able to focus on providing clinical services. Hire the billing to professionals!

 

3. Have a Plan to Manage Vaccine Inventory and Supplies

Consider the requirements before ordering your first shipment of any vaccine. For example, planning and ordering flu vaccines for the next flu season starts before the previous flu season ends.

Pharmacies should know the storage requirements for the vaccines they intend to administer. The CDC has guidelines for each type. Some require refrigeration. Others require freezing. That requires a way to monitor temperatures.

In terms of physical space, pharmacies should create a private area in which they administer vaccines to patients. A private room is worth the investment.

 

4. Organize Your Workflow

Pharmacies should think about and walk through their workflows prior to starting a vaccine practice.

  • How will the pharmacy take walk-ins?immunizations form
  • Will you train all the pharmacists?
  • How will appointments be made?

As most experienced immunizing pharmacists can attest, actually giving a dose of a vaccine takes the least amount of time during the entire process. More time is spent by patients and pharmacies completing medical history forms, filling out consent forms, checking and verifying insurance benefits, copying health insurance cards and identification cards, billing for services and arranging and making payments.

Pharmacies should assign the most appropriate person to perform each task, ideally having technicians and other staff do most of the non-clinical work and leaving the pharmacist to administer the vaccine. The goal is not to disrupt the normal workflow of taking, filling and dispensing prescriptions and refills but integrate this new service into the workflow seamlessly.

 

5. MARKETING, MARKETING, MARKETING to Promote Your Immunization Program and Your Clinical Services!

It’s important for independent pharmacies to promote their programs via multichannel marketing campaigns. Your first target should be your current pharmacy patients.

A note about COVID vaccinations – this opportunity is driving new patients to you for FREE!! Spend the time and money to make sure you are getting all contact information for later programs. Also be sure you are educating your staff on how to make these COVID Vaccine patients NEW patients to your Pharmacy.

Vaccine programs can serve as gateways for pharmacies to grow their clinical operations. They can learn what it takes to run a clinical program and become comfortable adding other clinical services to their business. In doing so, they can expand their businesses to succeed in today’s industry.

 

Need More Information?

Learn more about how Community Pharmacists Make a Difference With Immunizations, written by PDS member, Travis Wolff, PharmD and Emma Leffler, PharmD. If you still need more help deciding if starting an immunization program is right for you, schedule a call with PDS and sign up for the 2021 Super-Conference in May.  

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