A Health Check for Your Pharmacy

As a pharmacist, you manage multiple priorities. Along with providing a growing number of services such as dispensing prescriptions and immunizations, you must manage the day-to-day challenges of purchasing inventory, hiring staff and planning your marketing efforts. How well you manage these tasks will go a long way towards determining how successful your pharmacy is going to be.

A 2023 Scotiabank Insights on Pharmacists report found that workload, long hours and labour shortages come up as top challenges for those setting up their own pharmacies.¹ But with careful planning and the right support, it’s possible to overcome these obstacles. 

Here are six smart strategies that can help your pharmacy thrive:

Managing your responsibilities well can help increase your pharmacy’s revenue. But doing so isn’t a simple task. It requires you to analyze all aspects of your business and set both short- and long-term goals.

“There is a growing list of moving parts involved in managing a pharmacy more effectively and competitively,” explains Bart Bagrowicz, Director & Group Lead, Healthcare & Professional Banking, Western Canada at Scotiabank. “The owner needs to be thinking about a broad range of considerations – everything from customer service to controlling inventory to adopting the latest logistical/management technology. All this requires a carefully thought-out plan.” Set goals for managing your pharmacy in terms of opportunities for improvement and map out how you will achieve them. Doing so will help set you up for success. 

Consult with experts who can help make you aware of potential revenue-enhancing strategies and beneficial new technologies. Bagrowicz recommends working with a Healthcare & Professional Specialist, an accountant and a lawyer who have a thorough understanding of your industry. He says, “those partners are worth their weight in gold – not to mention the potential tax savings an experienced accountant may be able to assist with.” Additionally, a lawyer can provide preventative advice and avoid pitfalls in agreements and contracts.

Healthcare & Professional Specialists provide banking advice tailored to your unique situation. “When you are managing a pharmacy in today’s everchanging environment, it’s critical to have the right kind of banking support,” says Bagrowicz. “It is especially important when borrowing to renovate an existing pharmacy or purchase another one, to not overextend yourself. Obtaining the right advice can materially help your bottom line.”

Having either too much, or too little inventory is a balancing act you may have to face. Surplus inventory sitting in storage can tie up your cash flow. However, not having the right products in stock can lead to customer dissatisfaction and lost sales. Having the right products and services can give you an edge over your competitors. Adopting technology that enables you to continuously monitor and adjust your inventory based on electronic tracking can help you determine which products aren’t selling and replace them with ones that are, achieving inventory balance.

Pharmacies today are also carrying an ever-expanding array of products. To manage this trend and develop an optimal mix that aligns with your business plan, you should be monitoring the market continuously for new products and services. Some pharmacies have in-store Naturopaths or have added new lines of non-prescription products to help increase customer traffic and differentiate themselves, while at same time giving their customers more options.

How your products are displayed can also help improve sales. Areas around the prescription and checkout counters often see the greatest customer traffic. One strategy might involve rotating different products in and out of these areas to curate your product mix based on what sells and what doesn’t. Maximize these high visibility spaces to entice customers with products they need and want to increase sales.

Did you know that consumers will often pay more for a product if it comes with great customer service?² It’s why training your employees to provide great customer service is so important in maintaining and growing your business. They can engage with customers to discover and document their opinions, likes and dislikes and help increase sales by recommending specific products.

And remember, your employees are the face of your pharmacy. So, coach your team on how to improve customer service by reminding them to:

• Never keep customers waiting longer than necessary
• Always use positive, empathetic language
• Know your products so they can help customers find what they are looking for
• Take service to the next level by recommending and advising customers on options and solutions.

Leveraging the right computer technology can greatly improve the management of your pharmacy. For example, software that processes prescriptions overnight can enable you to start filling medications as soon as you arrive on-site in the morning. Other programs can build in efficiencies by doing everything from automatically printing labels to sending claims to insurance companies. You will have to choose the technology that is right for you and your pharmacy.

“It’s also important to make sure you’re aware of everything your financial institution has to offer,” says Bagrowicz. “Your bank can provide you with additional automation services, such as automated payroll services and mobile cheque deposits for convenience that can help improve your bottom line as well and free up precious time.”

Managing a pharmacy efficiently is a team effort. Make sure everyone is well trained in their roles and hold regular team meetings to keep everyone motivated, engaged and up to date on your management plans.

To help retain your employees, be sure to recognize their accomplishments. 57% of employees in one survey said feeling appreciated by their manager reduced their likelihood of leaving.³

There are many ways to show your appreciation to your employees. Perhaps it’s by providing them with a partial day off, or early leave from their shift with pay or by recognizing an outstanding employee on your store’s website. Recognition comes in many forms, use what works for you and your team, be creative and it will create engagement. Providing meaningful recognition and appreciation is valuable for providing a positive work environment and fostering a great team. One of the easiest ways, is to simply remember to say thank you, this can be forgotten in a busy day of running your pharmacy as you get pulled in many competing directions.  

For customized advice and support to help you manage a successful pharmacy, contact us today.