How Your Pharmacy Business Can Turn a $10 Script into $100 Profit in 2 Minutes
If you asked a room full of independent pharmacy business owners if they would prefer to increase the number of customers filling $10 prescriptions, or increase the dollar value of existing scripts, chances are they’d all choose the latter. But many believe it’s easier to find more customers and admit to focusing on marketing tactics to attract new business instead of working to optimize current prescription profit margins.
While increasing the patients you have coming in the door can certainly make your business busier, one of the easiest ways to improve your bottom line is to focus on increasing the profit per script of your existing patients.
Sounds great, right? But how is it done?
PDS Members are spending at least one hour per day mining their database and utilizing the PDS Profit Chart They are identifying profit-driven opportunities where, for example, a doctor-approved switch from one low-profit drug to one in the same drug class, but with a higher margin, can increase your profits every month that patient is on the prescription, and often lead to fewer side effects. A $10 prescription can quickly generate a $100 profit (when filled monthly) almost instantaneously.
For example, Mike, owner of a Utah-based pharmacy and a PDS Member since 2013, credits using the Profit Chart to having the best few months in the history of his business. Mike and his team have tripled their profits per script in his most recent month of reporting – a difference that amounts to a $40,000 boost to his bottom line!
Data Mining – the Profit Chart’s Best Friend
One of the most effective ways to increase $10 scripts to $100 profits is by utilizing the Profit Chart to identify key switch opportunities, implement successfully, and replicating that success across as many scripts as possible.
To do that, pharmacy business owners should leverage data mining – the practice of reviewing your pharmacy data when it comes to patient prescriptions, highest/lowest paying drugs, highest/lowing paying insurances, and more.
Once you identify an excellent opportunity for a profit increase, identify other candidates that have been prescribed the first medication and see if you can benefit from suggesting the switch to them as well.
PDS Member Vic, owner of North Carolina-based pharmacy, did just that by implementing the Pain Protocol. Seeing how well the pain medication switch for several patients fared – $90,000 in one month to be exact – Vic realized that if he thought broadly, he could replace several medications, following the profit and improving comfort and care for a huge percentage of his pain patients.
The Profit Chart Paradigm Shift: Pharmacy Businesses Are Allowed to Make Money!
The “profit-driven” mindset and practice of utilizing data mining can be a bit of a paradigm shift for many independent pharmacy business owners.
PDS Members John and Sue, owners of a Kansas-based pharmacy, recall that at first, they felt like they were “gaming the system.” They shared that it felt wrong to be seeking the greatest profit from their patients when they had chosen the pharmacy industry with patient-care and not profits in mind.
Amy, an Oklahoma-based PDS Member, felt very similar but shared that ultimately the PDS Founder, Dan Benamoz, put it best when he explained that leveraging data mining is one of the best ways to move the needle and keep her in business.
These are stores where communities and patients have built heartfelt relationships – stores the patrons want to continue to frequent.
Utilizing the Profit Chart and data mining doesn’t hurt the patient at all – in fact in many cases, the switch either doesn’t impact the patient or improves their standard of care through a higher-quality drug.
Turning Ideas into Action!
If you’re ready to stop focusing on things out of your control – like low-paying insurance providers – download our newest eBook – The Pharmacy Business Blueprint for Massive ROI – now! Or, to see how PDS can help you turn $10 prescriptions into a $100 profit, chat with one of our Business Growth Advisors