"The Successful Man is the One Who Finds Out What Is the Matter with His Business Before His Competitors Do." Roy L. Smith
When you leave your pharmacy entirely in the hands of third parties, you lose.
Such is the essence of your destiny now, more than ever before. And it’s true in two different ways.
Both of those are true and both of them will eventually destroy your pharmacy as a business, unless you…
Increase Gross Profits by Taking the Following Actions
If you own a pharmacy that buys $250,000 or more in drugs every month, you can put upwards of $10,000 in your pockets each and every month. I can’t go into exact detail on how this operates, other than a proprietary software accompanied by a disciplined protocol of application.
Recently, while speaking with a pharmacy owner, I mentioned that, in addition to helping him to create a new income stream that will bring dozens of new patients into his store each week, he could also be saving 5%-8% on his drug costs. His response? “This is a no-brainer!”
Nothing Else Will Work as Fast
Nothing else can quickly reboot your pharmacy. Nothing else can reinvent your profits as rapidly as buying your drugs at these low chain store prices. How is it done? With the use of proprietary software. Also, your dedication.
Remember what is was like when you were in elementary school and you discovered how a magnifying glass could focus the rays of the light with such intensity, it could ignite a fire? Well now you can ignite your focus and your dedication and see some good, positive money-in-the-bank results.
What Worked Before Won’t Work Today
Until about 10 years ago, filling traditional prescriptions was a profitable venture. Over 12% of them were cash, and Medicare had yet to commence dictating lower and lower compensation rates.
However, to some savvy pharmacy owners, the handwriting was on the wall. The rest failed to see it.
Once Medicare stepped in and created an iron-grip control over the compensation issue, the other insurance companies fell into line. And so, the final nail was placed in the coffin of those who continued to embrace that business model without keeping an open mind to other possibilities.
Thus, the domination of the third-party payer system for independent pharmacies was born. So, too, was the continuing downward spiral of compensation for the independent pharmacy owner who relies on these scripts for income.
Change Your Business Model, and Further Change Your Results
The third-party payment fiasco may be the problem; however, the solution lies in changing your business model, your strategies, and your marketing.
And so, over a decade ago I postulated the first of my Eternal Business Truths: “never, ever leave your destiny in the hands of a third party. When you do, you lose.”
Other sources of income with higher margins exist. Most bring you cash, not insurance cards. And, those margins are 42% to 87%.
Meanwhile, join the new high-performing pharmacy owners who are increasing their margins by 5% to 8% on their tradition scripts.