"The Successful Man is the One Who Finds Out What Is the Matter with His Business Before His Competitors Do." Roy L. Smith
5/16/2017 3 Comments
Over 380 Cases Prove It
Many pharmacists struggle. A select group have cracked the code for success—enormous success in the Independent Pharmacy World.
Let me tell you the stories of two.
When I first met Craig by phone, he was still struggling with a traditional pharmacy that was commencing to spiral downwards in terms of cash flow and profitability. He told me he would soon sell it and move to another state to create his dream pharmacy.
About 18 months later he did indeed call me. We discussed what he had done: establish a compounding and natural med pharmacy only it was 6 months old. And he was struggling to get it off the ground.
He arranged to bring me aboard with the understanding that he would achieve a certain sales goal in six months. At that time his only assistant was his wife.
We achieved the agreed goal; it was accomplished in just four months. And, within a year he saw his sales quadruple. He later moved to a bigger and better location, and a couple of years later started to enjoy a rather permanent vacation. By that time his pharmacy had grown to 4 pharmacists, 12 compounding techs, and several other individuals to round out the staff.
Jake, on the other hand, had been in the independent pharmacy business for about 12 years. While making a reasonable living, he was nevertheless struggling on a daily basis to find out what worked & what didn’t. Most of his scripts were traditional, some were compounds. His front end was natural meds amidst some of the typical OTC products. He had one assistant and a bookkeeper, whom he had just severed from his payroll. After a brief discussion, he agreed to rehire her.
In the course of a few months, I enabled him to partner with another compounding pharmacist who had a large veterinary following.
His business immediately boomed. With margins exceeding 50%, the pharmacy thrived to the extent it had to move to larger quarters, which he established on a major highway. It didn’t take long for the practice to grow to 4 pharmacists, 8 techs and a few other support staff. Several years later the partners dumped their traditional scripts, recognizing that such low profit income was business they did not want.
What the Two Pharmacies Had in Common
Both pharmacies started in medical arts buildings. Each in only about 1,200 sq. ft. After achieving a certain amount of success with my “strategic marketing,” each moved to a high traffic location. For both, business boomed. One started with the ideal business model; the other embraced it after a little trial and error. Each recognized that the business model made all the difference in the world—both in cash flow and profitability.
For reasons of confidentiality I cannot reveal the true names of the individuals or amount of money they have been taking home year after year. By this time, I believe you can see it is huge. Many others have followed in their footsteps; however, these two are perhaps the most memorable.
Achieving this level of success and the lifestyle that accompanies it is a matter of making choices. Here are the basic elements on which these choices should be made:
For more information on this subject, send for my free report “The Very Savvy Pharmacy Owners Marketing Handbook.”