Is owning a pharmacy still profitable?
It’s an important question because communities need independent pharmacies.
You might be mulling this question over if you own an independent pharmacy and are struggling to earn higher profits. Or, maybe you’re thinking about entering the pharmacy business and wondering if it’s a worthwhile venture. Your concerns and contemplation are completely justified given the relentless slashing of prescription drug reimbursement over the years. [We’re a little biased, but we’d give an enthusiastic YES!]
So… is owning a pharmacy still profitable?
From our experience working with independent pharmacies across the country, our answer is still an enthusiastic YES!
Like so many businesses today, however, independent pharmacies are facing significant challenges that can turn into significant opportunities. And if you want to not survive, but thrive, it’s important that you adopt and execute the business strategies that will help you stay ahead of the pack.
How is the Independent Pharmacy Industry Doing?
Most experts believe that the pharmacy industry is stable.
According to S&P Global, the industry will experience steady growth through 2027, and in 2023 the industry generated over $600 million in revenue.
But there’s a major caveat.
The numbers are skewed by large, corporate pharmacy chains, such as Walgreens and CVS. The outlook may be different for smaller, independent pharmacies.
According to the National Community Pharmacists Association (NCPA), independent pharmacies are experiencing greater financial struggles. A pharmacy survey conducted by NCPA found that 32% of respondents were considering closing their doors.
Challenges Facing Independent Pharmacies
What’s causing financial strife for independent pharmacies?
If you own an independent pharmacy, then you’re probably already familiar with some of these issues:
- Strong competition from big box retailers, chain pharmacies, and online retailers
- Lower prescription reimbursements
- Higher remuneration fees
But it’s not all doom and gloom!
It’s absolutely possible for independent pharmacies to thrive in this challenging environment.
We know because many of our partners have achieved incredible success. [Check out the HME180 Podcast for independent pharmacy success stories and case studies such as with Oswald’s Pharmacy!]
What do these pharmacies do to reach strong profitability in 2024 and beyond?
Profit Strategies for Independent Pharmacies
The most successful independent pharmacies prioritize one thing above all else: creating a superb customer experience at their retail store. This is where you crush your competition, whether they are big pharmacy chains or Amazon.
You can accomplish this by:
- Stocking the Right Products: There are some items that customers prefer to shop for in retail stores, such as HME products, essential oils, and dietary supplements. Not only do these products give you higher margins, but they’re also essential in helping so many people live a happier and healthier life.
- Training and Maintaining an Empathetic Staff: Customers shopping for mobility aids and other wellness products may need more guidance and encouragement while they’re shopping, and that’s where your staff comes in. When your employees are well-versed on your products and empowered to provide world-class customer care, they’ll be able to provide your shoppers with more effective and valuable experiences.
- Providing Total Wellness Support: Offer your customers total support for whatever health issue they’re dealing with. You can provide wellness education tips, product warranties, servicing, and customizable accessories that turn mobility aids into fashionable accessories. When you do this, you’ll transform your retail space into a place for experiencing joy and wellness.
Another question you might be asking yourself: how can independent pharmacies implement these strategies when they have fewer resources to work with?
Put Ideas Into Action
NOVA can provide you with all the resources you need to overhaul and execute the customer experience in your pharmacy.
We can supply you with the best HME products and accessories that will bring joy to your customers, provide easy and intuitive staff training programs, wellness resources, and personalized guidance on how to add mobility aids to your retail space and scale up. It’s all part of our mission to help you ReNOVAte your Revenue!
Our communities need Independent Pharmacies and profitability makes the mission to improve lives possible.
