Pleasing your patients and increasing sales in your independent community pharmacy are likely top priorities for you. Filling more prescriptions or increasing front-end sales may come to mind when contemplating how to boost your profits. But, don’t forget the benefits of cutting unnecessary expenses.
Eliminating unnecessary expenses from your budget can help you save money and increase your pharmacy’s profits.
Here are 10 ways to cut out extra expenses from your pharmacy.
When it comes to marketing:
1. Decipher what works best for your business
Different marketing and advertising strategies work for different businesses. Decide which strategies are the most successful for your small business, and eliminate the strategies that don’t work.
2. Ask for referrals
Referrals are an easy, free way to get patients to come to your pharmacy. Simply asking your current, loyal patients to refer their friends and family to your business can help your pharmacy boost sales and cut out the unnecessary expense of paid advertising.
3. Focus on free advertising
There are many outlets available to market your pharmacy without a cost. Utilize your pharmacy’s social media, volunteer your time at a health fair or offer your expert advice to the media. Free advertising is readily available and can help your business save money while getting your pharmacy’s name out in the public eye.
4. Negotiate with vendors
Forming partnerships with other local businesses, including area physicians, local employers and health organizations, can help your pharmacy business grow without a price tag.
When it comes to employees:
5. Consider hiring temporary positions
You may not have the ability to hire a full-time employee for a certain position. Full-time hours means salary and benefits, both extra costs you won’t need to worry about if you hire someone for a temporary or part-time position. If a particular part-time or temporary hire excels, you can offer them a full-time position in the future.
6. Utilize interns
Hiring interns is not only beneficial to your bottom line, but pharmacy students can gain valuable experience from working at your pharmacy, too. Eliminate the cost of hiring a full-time employee by utilizing the lower-cost labor of an intern.
7. Reduce inefficiency
The staff at your independent community pharmacy is most likely what keeps patients coming back to your business. Friendly, educated employees can help make your business boom. Slacking, or poor-performing individuals can cost you more than they can help you make a profit. Making an initial good hire can help you reduce inefficiency at your pharmacy.
When it comes to your finances:
8. Strategize your inventory purchasing
How do you currently purchase inventory? Knowing the pros and cons of different methods, such as credit cards, line of credit or electronic funds transfer (EFT), can help you make the best possible balance between cash flow and profitability for your business.
9. Monitor your inventory
Accurately managing your inventory can help your business save money by avoiding unnecessary purchases. Determine which front-end products sell the most, and pinpoint the most common—and profitable—prescriptions you fill. Purchasing certain items in bulk may also get you a discount.
10. Purchase previously used equipment
Technology is continuously changing. A piece of equipment you bought three years ago may already be considered outdated. To eliminate extra expenses, consider purchasing used equipment. You may even be able to purchase slightly used equipment for a substantially lower price than brand new.
Learn the top 8 financial tools for pharmacy businesses.
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