What does it take to succeed in today’s pharmacy market?
This is really the million dollar question. You may have a specific answer, like partnering with a certain company or offering a certain service because this is something you’ve seen work out for other pharmacies. Or you may be vague in your response and say that carving out a niche is the best way to succeed.
While these answers may be correct, most answers are contributing factors to the one universal way to succeed in any market – maintain a healthy bottom line. Simply filling prescriptions and hoping to make a profit at the end of the month is no longer a sustainable way to run your pharmacy business. You must manage your financials.
In this endeavor, we’ve gathered five valuable pharmacy POS reports that can help you keep track of profit.
Customer Profitability Report:
Unfortunately, in the pharmacy business you’re not guaranteed to make a profit off every customer. You may be filling a monthly prescription for a patient that loses you $1.25 each time you fill it because the reimbursement is lower than your cost.
This report can show you the profit you’ve earned (or lost) on specific customers over a period of time. Using this information, you can look into what prescriptions these customers take, what over the counter (OTC) items they typically purchase and what you could do to increase profitability with other customers.
Most Profitable OTC Items Report:
Almost every pharmacy has front-end items to supplement their prescription profit, even the big chain stores. This report identifies which of those front-end items are most profitable to your business. It shows a description of the items, their cost and unit margin.
When you sort by the margin you can see which items are most profitable and which are not, allowing you to determine what items work best on your front-end shelves and those that might be better if phased out and replaced. It is important that you utilize your front-end space to its potential, so you don’t want irrelevant items hanging out, taking up precious shelf space and collecting dust.
Delivery Mapping Report:
Is your delivery driver making multiple trips to the same community throughout the week? Could these deliveries be combined into one trip to save gas and time?
This report can help you determine ways to make your delivery route more efficient by showing you when and where you are delivering over a period of time. It make take some planning and short fills, but paying attention to this report can make a difference in the cost of your delivery program.
Delivery route mapping is also a great tool to help when setting medication sync dates for your pharmacy. By grouping your synchronized deliveries you will make the entire process more efficient and ultimately profitable.
This report focuses on changes that are being made at the register, such as price changes, voids and ignored warnings. Using this report, may help you to identify unexplained losses.
By filtering for various issues, you can identify if you have a clerk that is repeatedly making errors or is doing something against company policy. Also, this report is good for identifying problems that you’ve noticed in the pharmacy, such as inconsistencies in the drawer at close of shift or issues with dispensation.
Inventory Cost Report:
You may recognize this report from our blog, 5 Pharmacy Software Reports You Should Be Running, because it’s a very useful report. This report offers insight to the monetary value of the inventory on your shelves.
You can adjust it to show only positive on-hand values and show the total cost of your inventory, or you can identify the most expensive inventory and whether they’re big movers or just sitting on your shelves waiting to expire. You don’t want to have inventory on your shelves that isn’t moving, especially if it’s pricey.
You can return inventory that’s just sitting on your shelves. In your report look at the date the medication as last used and the quantity that you have. If it has been more than 60 days since you used the medication and you have more than a package size in inventory, we recommend returning them.
Caring for patients, finding a niche market, and collaborating with industry partners are all crucial to your pharmacy business and should not be undervalued in this ever-changing pharmacy market. However, they are all a means to that healthy bottom line that you should strive for.
Running reports like the ones discussed here can help you stay on top of your bottom line, know your strengths and locate problem areas.