Pharmacy Profits and ROI Archives | Pharmacy Development Services

Your TEAM is a critical piece of the puzzle

November 13, 2019/in Featured /by Erin Hmielewski

What comes to mind when you think of pharmacy success? Most will mention efficient operations, the ability to grow, and of course, profitability. When it comes to measuring success though, one critical aspect of the business that is often overlooked is the TEAM. It’s not that they aren’t important, it’s that business owners often fail to recognize the direct and immediate impact their employees can have on the bottom line.

In any business, including independent pharmacy, individual employee performance impacts the performance of the team as a whole. In order to run a truly successful business, you must have an engaged and dedicated team. So how do you get there? What will the impact be when you do?

PDS member, Travis Wolff of Med-World Pharmacy, realized how important this piece of the puzzle was. He DOUBLED his revenue in only 9 months by focusing on (you guessed it) – his TEAM and their engagement.

Watch this webinar from the Oval Group, LLC, a PDS partner, to hear this inspiring story.

Are you ready to experience the impact of an engaged team? Here are a few things you can do to get started.

Review your current team – are their roles aligned with their abilities? Aligning existing talent with responsibilities that fit their strengths can make a big difference in their performance.
Look at your hiring process so you can hire and select the right staff. According to the Society of Human Resources, 80% of employee turnover is due to bad hiring decisions.
Understand your employees and help them understand themselves. There are many assessments available that allow you to take a deeper look at the individuals on your team and figure out how to configure your team for success.
Enhance team communications to increase efficiency and productivity. This will help improve morale by reducing stress and conflict.

The right team in the right roles with the right goals will be as invested in the success of your pharmacy as you are. Getting there is not always easy, but the outcome is worth it.

For PDS members, log into PDSadvantage to find the applicable pharmacy team resources in the Knowledge Library that can help you start engaging your team on a higher level such as Designing Your Company Culture, Recruiting, Hiring, Training and Retaining the Right People, Incentivizing Your Team, and many more.

PDS partners are vital to the success of our members. The Oval Group LLC is a talent management solutions provider that specializes in tools that enable business owners and corporate executives to make informed strategic decisions about their unique business and the people who hold the keys to its success.

Smart Year-End Tax Moves: Section 179

November 11, 2019/in All, Pharmacy Finances, Pharmacy Profits and ROI /by Lisa Faast

Are you thinking about purchasing new equipment to offset income or to begin expanding your services to improve your business? Make the purchase and install it by the end of the year to qualify for a Section 179 deduction.

Why Leverage Section 179?

The tax code is certainly a beast that many of us never want to think about and yet if you understand it, you can take actions that will benefit you and your pharmacy. Pharmacy automation improves operational efficiency while also expanding services. An investment in equipment is often the best step to improving automation. You can leverage Section 179 to help attain pharmacy automation at the lowest cost is possible.

What is Section 179?

Section 179 refers to a tax deduction that allows businesses to deduct the full purchase amount of qualified equipment in one large deduction rather than having to slowly depreciate the equipment over many years. For tax year 2019, this allowance can be as high as $1,000,000. This deduction goes directly against any business income for this year and if your deduction is higher than your income, you can carry any remaining deduction over to future years!

What kind of equipment will qualify?

Equipment will qualify at any price point, there is no minimum purchase amount. It also does not have to be new equipment; it just needs to be new to you. Since this is a business deduction, the equipment must be used for business purposes more than 50% of the time. If you want to take this deduction in 2019, you need to have the equipment installed in your pharmacy by December 31, 2019.

Are there any changes coming for Section 179?

While we can’t predict the future, the Section 179 deduction seems to be secure but it’s important to note that significant changes in politics can affect the tax code. Section 179 was recently increased from a maximum of $500,000 to its current level of $1 million.

Section 179 at a Glance

It can only be used to offset business income
The equipment must be new to you
It must be installed before the end of the year
Maximum amount is $1,000,000 for 2019
Any remaining amount not offset by 2019 income can be rolled over to offset 2020 income

RxSafe RapidPakRx Will Qualify for a Deduction

A popular piece of automation for independent pharmacies is the RxSafe RapidPakRx strip packager. Pharmacy owners choose this equipment because of its speed and small footprint. It also enables them to compete against Amazon PillPack by having their own compliance packaging service.

Priced at $175,000 ($165,000 for PDS members), it will certainly qualify for a Section 179 deduction as a business equipment purchase if installed by the end of the year. Time is running out but RxSafe still has the ability to take orders and get them installed before the deadline. If you would like to learn more about the RapidPakRx and how it can help you grow your business, please reach out to RxSafe here.

You can also learn more about Section 179 at RxSafe’s resource page.

Can you benefit from Section 179?

The answer is maybe. If you are getting regular monthly financials and having strategic calls with your accounting team then you probably know what your year to date income looks like. If you are not receiving accurate financials or pharmacy specific accounting advice, please reach out to our PDSfinancials team to discuss how critical financials are for you to make smarter business decisions and to operate your pharmacy at peak performance.

To help you get caught up with your 2019 financials, PDSfinancials is offering to rebuild your entire 2019 financials for free for all new PDSfinancials members in 2019 (a $10,000 value!). Even if you are not positive you have income to offset this year, you could still make those strategic equipment purchases that will help you produce a profit in 2020 because the Section 179 deduction is allowed to be carried over to future years’ tax returns.

You deserve to have the best insight into your pharmacy’s financial performance. Schedule a call with the PDSfinancials team to learn more.

Pharmacy Marketing: Attract New Patients from Store Closings

September 25, 2019/in All, Pharmacy Growth Strategies, Pharmacy Profits and ROI /by Matt Tompkins

Last month Walgreens announced the closing of 200 stores. Last April Fred’s decided to begin closing 159 stores and stated that they were getting out of pharmacy. We also heard about Shopko going out of business. These changes in the industry mean thousands of patients will be looking for a new pharmacy and YOU, the independent pharmacy, are their best option. Therefore it is time to kick your pharmacy marketing into gear.

Now that the closings are underway this presents an opportunity to attract those patients. We thought it would be helpful to remind PDS members and the independent pharmacy community at large about the first steps to reaching (and attracting) these patients.

Some of the action items below are repeats from our blog How to Leverage Big Box or Chain Store Closings back in in May of 2016 when Walmart announced their store closings.

At PDS we classify our pharmacy marketing efforts into three buckets: inside the four walls, outside the four walls and digital marketing. Within each of these groups, there are steps you can take to start attracting new patients.

Building these relationships and ensuring that your customers are happy within your own independent pharmacy business is very important. Below are three ways you can strengthen your skills towards more profitable relationships with your pharmacy’s customers.

Inside the Four Walls

Are you ready to take on more customers? If you were to bring in 100, 200 or 500 new patients, would you be able to accommodate them and provide excellent customer service? Your new patients need to see, feel and experience an unprecedented level of service. Make sure that you have a New Patient Process and New Patient Packet set up or updated.
Promote your Referral Program to your existing patients. Use your current patient base to promote the valuable services you offer.

Outside the Four Walls

As soon as you hear about a closing, make your first stop a visit the store’s management. They are probably concerned about their patients and by establishing a relationship with them, they will feel comfortable referring their patients to you. During your visit there may also be an opportunity to recruit some great talent.
Use traditional marketing techniques. Put up a banner outside your store stating that you welcome new patients. Send a direct mail postcard in your area.
There is some urgency to getting this done so lean into your local printer to get these materials produced quickly.

Digital Marketing

Use social media to reach new customers. Create a Facebook ad with photos of your team and your pharmacy that will be displayed within your target area. Be specific about the store closing and that you are welcoming new patients.

In your communication to these new patients, it is important to convey that their health and well being are your priority. Show them that you can offer quality care, convenience and competitive pricing. If you have an efficient medication synchronization program, promote the benefits it will offer them as a patient of your pharmacy. At a time when these patients need to make a switch, we have a great opportunity to show them that an independent pharmacy, your pharmacy, is the best place for them.

For PDS members, log into PDSadvantage to find the applicable pharmacy marketing resources in the Marketing section of the Knowledge Library that will help you win these new patients. The How to Develop Marketing Campaigns program, the New Patient Process, our Marketing Mastermind calls and the Make the Most of a Closing Competing Pharmacy are all available to you with additional detail so you can accelerate your implementation.

How to Build Profitable Relationships and Create Customer Delight in your Independent Pharmacy

July 9, 2019/in All, Pharmacy Profits and ROI, Pharmacy Staff Development /by Ali Maiorana

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 GRX Marketing, pharmacy marketing experts who offer customized solutions for your pharmacy’s unique marketing needs. Read on for their sponsored blog post about creating customer delight and building profitable relationships in your independent pharmacy.

Customer relationship management. A simple enough concept that focuses on just that; managing customer relationships. While every business, and person, has their own methods of customer interaction, the building and maintaining of profitable customer relationships is often the biggest piece that needs to be honed.

According to a study conducted by SmallBizTrends.com, a 5% increase in customer retention can lead to an increase in profits of between 25% – 95%. Additionally, 47% of customers would take their business to a competitor within one day of experiencing poor customer service!

Marketers define customer value as the customer’s evaluation of the perceived differences between all the costs and benefits of competing companies. This is often the primary reason they choose your independent pharmacy, rather than anyone else.

Think about the stores that you are loyal to (grocery, restaurant, gas station, convenience stores, etc.). Why do you keep going back? Is it the prices, the products, services offered, location convenience, or is it the customer service? Why do you continue to use them, rather than any of their competitors? It’s because at some point, you decided to value them for what they have to offer. Now think about how much money you have given them over the years, compared to their competitors.

Building these relationships and ensuring that your customers are happy within your own independent pharmacy business is very important. Below are three ways you can strengthen your skills towards more profitable relationships with your pharmacy’s customers.

Three Ways to Gain More Profitable Relationships

Be adaptable. Independent pharmacists know as well as anyone that no two customers are alike and even the same customer can be different week to week. No matter who you are talking with, be sure to be empathetic, patient and focus on delivering clear communication.
Practice active listening. Active listening is a technique that is used in counseling, training, and solving disputes or conflicts. It requires that the listener fully concentrate, understand, respond and then remember what is being said. As it relates to independent pharmacies, active listening can lead to improved sales and patient adherence by constantly thinking about what each customer needs and what products or services you can provide to help them. Active listening lets you show your respect, support, and concern, and promotes trust between you and the customer.
Provide a way for customers to provide feedback. In-store and email surveys are a great way to gauge feedback from your independent pharmacy customers. The good, the bad, and the ugly are all important to know so that you can continuously improve and avoid having unhappy customers voice their feedback publicly. By being open to suggestions and criticisms, you are showing your customers that you are listening to them and their concerns. More importantly, you are willing to change based on that feedback. Once you have developed those relationships, and customers continue to come back month after month, the next step is to ensure they stay happy. The easiest way is to simply go above and beyond whenever possible.

Examples of Going Above and Beyond for Your Pharmacy Customers

Start offering a rewards program
Send happy birthday messages
Start a new patient welcome program
Add little goodies to their bag when they pick up their medications
Offer one month free of medication packaging
Host a customer appreciation event

There are so many things that can be done to help create delight with your independent pharmacy customers. The bottom line to keep patients happy is to consistently deliver what you promise and then continually strive to deliver more. Any independent pharmacist can fill a prescription, but only the best goes above and beyond for their patients!

As fellow pharmacy owners, GRX Marketing knows what works! Over the past decade, we have perfected the art of developing, and implementing, marketing plans for each independent pharmacy’s unique needs. By customizing proven marketing tactics such as in-store, email, patient outreach, social media and more, our program allows pharmacy owners to focus less on marketing their business and spend more time on creating happy customers. Contact us today at www.grxmarketing.com or call 515-280-2914.