|Revenue, Inventory and Payroll. |
We hear regularly from clients, prospects and other owners that it is so hard to run a pharmacy, it is so hard to make money, it is so hard to know what to do, etc. But in our opinion it is pretty simple, its just 3 things Revenue, Inventory and Payroll.
In a pharmacy three areas impact profitability, how much revenue the pharmacy has, Inventory (both how much you pay and how much you have on the shelf) and how much payroll you have to support that revenue. You have to have enough revenue to make money and inventory and payroll make up 90% of your expenses.
|So if you wake up every day, think what can I do to increase revenue, what can I do to lower my cost for inventory and find ways to control the amount of payroll needed you will have a good pharmacy.|
Are we over simplifying it, maybe but if you do not have these 3 things figured out you will not have a foundation to improve in any other area, you won’t have enough cash to pay staff to implement other improvements, you won’t have time to make new decisions, etc. It all begins with having processes to improve revenue, lower cost of goods and keep payroll controlled.