"The Successful Man is the One Who Finds Out What Is the Matter with His Business Before His Competitors Do." Roy L. Smith
In every industry, there are a few super successful players— ones who know and understand the basic principles of success. These findings are the result of a 5 year massive study by a team of researchers who delved deeply into the subject.
For independent owners, they are the ones who have created— or are now creating— a Wellness Pharmacy.
And while there are obstacles to be overcome and habits to be formed, these 3 basics underlie all success.
1. Better before cheaper. For the Wellness Pharmacy, better information and better products are so basic and fundamental that they need to be put upfront. They are the foundation on which success can be built.
Cheaper is what the chain stores and big box store pharmacies try to maintain they are delivering. Cheaper and lower performing qualities of natural medicines is what they offer...and what they deliver.
The Wellness Pharmacy can and should deliver the opposite: better quality backed up by superior information.
2. Revenues before costs. No one ever got rich by cutting costs. Obviously, fat should not be allowed to accumulate in the cost column. However, there is a point at which any further cost cutting depletes service. And that is an issue no independent pharmacy owner ever wants to face.
This rule has the merit of providing meaningful guidance because the opposite could be true. Lower costs might systematically have driven superior profitability. Instead, the researchers found that in 8 of 9 cases, superior profitability is driven by higher revenue, in many cases thereby incurring higher costs. Of the 8 Miracle Workers, those with revenue-driven exceptional performance, 6 relied primarily on higher prices, while 2 relied on higher volume.
The analysis of the full population of exceptional companies gave grounds for concluding that the pattern is not just confined to the sample, but also encapsulates the characteristics shared by the most exceptional companies.
This fact is abundantly clear in terms of those independent pharmacies that The Pharmacy Sage has helped to create as exceptional success stories.
For pharmacy owners, low margin revenues do not create the desired results. High margin ones do.
Since most expenses are fixed— and even the ones that may not be fixed in the long-run are definitely fixed in the short-run— the obvious answer is...
...high margin revenues must be increased to create pharmacy success
Hence concentration on revenues, not costs, is paramount. It must be the focus of the Wellness Pharmacy owner if he truly wishes to pursue financial success. Using good sound strategic marketing here is the conduit.
The opposite can never produce results. Cost cutting is a downward trend. Increasing revenues is an upward one. Hence, revenues before costs.
3. Quality before quantity. For patients, quality is what you’re all about. Quality should never be in doubt, especially regarding the information you dispense, whether verbally or in writing. Written reports are essential, especially for the visually oriented patient. Difficult to create, yet a necessary component to the Wellness Pharmacy.
So, quality is what you should be all about. Even the foundation for your brand. And certainly that should be De Rigueur with regard to the way you conduct business with your patients.
However, when it comes to creating profits, revenues before expenses should be your rallying cry. It’s how exceptional pharmacy owners THINK.
For more information on how exceptional pharmacy owners think, download my free report, “Entrepreneurship, Leadership and Marketing tor Independent Pharmacies.”