Pharmaceutical 

 

 

 

The Pharmacy Industry

 

Introduction

 

 

Challenges faced by pharmacies today:

 

1. Changes To How NHS Income Is Made Up

 

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2. Pharmacy Funding Cuts

 

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3. The Growth Of The Pharmacy Industry

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4. MTD

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5. Additional Compliance - Autoenrollment

 

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How a Pharmacy Can Improve Its Profits

 

So how can you stay ahead of the game and improve your profits

 

  1. Value-added services

  2. Additional revenues - maximising profits

  3. Know your local market

  4. Negotiating with suppliers

  5. OTC sales

  6. Understanding your costs

  7. Know your financial position -

 

 

1. Value-Added Services

 

NHS income has now been extended to include other services

 

Now the funding cuts have affected the profitability of Pharmacies, without doubt, however, there is a range of additional services that a pharmacy can provide to improve their profitability. Initially it may seem not like a financially viable option, however, it should be noted that not is this to clinch the addition NHS income, but also to drive customers through the door.

 

Additional NHS funding

 

  • Advice on alcohol consumption

  • Support for carers

  • Chlamydia screening and treatment service

  • Condom supply service

  • Emergency hormonal contraception service

  • An emergency supply of prescription medicines

  • Flu vaccination service

  • Independent prescribing by pharmacists – some pharmacists can now prescribe prescription-only medicines for certain medical conditions

  • Medicines use reviews

  • Minor ailment service

  • Needle and syringe exchange service

  • New Medicine Service

  • NHS Health Check – blood pressure, cholesterol or blood glucose testing

  • Pregnancy testing

  • Stop smoking service

  • Stop smoking voucher service

  • Supervised consumption of prescribed medicines

  • Weight management service

 

Local Primary Car Funding (CCG’s)

 

3. Know Your Local Market

 

Knowing your local market is also key. Insight into your local market will ensure that the services you and pharmacy provide meet the needs of the local market.

 

So how does one find out about the locals need you may wonder, well start from the source.

 

Book an appointment with the locals GP(s) and see how you can better serve the local market, suggest systems where you be sent Prescriptions directly, automatically renew prescriptions serves etc.

 

 

4. Negotiating With Suppliers

 

This may seem to be obvious, but many Pharmacists haven’t changed their supplier, of course, there are issues when dealing with the new suppliers, however

 

I fact simple scrutinising costs and letting your supplier know you are looking at margins drives them to provide you better deals

 

Also, the process of increases your own product knowledge leads the way to better customer service and essentially additional sales.

 

 

5. Retail Ethos & OTC Sales -

 

No two pharmacies are the same, the geographical area, footfall etc all play a part in the makeup of your OTC (over the counter) sales.  We have come to realise that pharmacies that pay attention to the profitability of their OTC sales and consider themselves as a retail outlet, as well as Pharmacy, reap the benefits of generating additional profit.

 

By having the detailed analysis of the products you sell will provide you with important information so that you can make important decisions such as product turnaround, profitability, this, in turn, will enable you to identify slow-moving goods so that you are able to make decisions such as replace goods with and alternative,  reduce its shelf space, reduce price etc. 

 

Such attention to OTC sales seems to be a daunting and time-consuming exercise however in actual fact once the initial effort has been put into place has been raised can be easily achieved with the help of modern technology identified.

 

Our experience in getting this setup and realising your potential is part of the service.

 

6. Understanding Your Costs

 

This seems like a simple idea, but again many Pharmacy businesses are not equipped with up to date information. focus is drawn to recoverability of VAT often crucial for the cash flow of the business rather than the attention to other costs

 

7. Know Your Financial Position

 

A trait of most businesses and entrepreneurs is that they know their numbers, we  

 

The accounting function of many traditional pharmacies is over complicated for no reason and as such accountants take advantage of the situation. We aim to ensure the accounting function of your business is seamless and fully optimised, so you can get on with more important things like actually running your business.

 

This is why we will provide a management report along with you with your VAT Return, which will provide you with useful information you can use to analyse your performance.

 

This includes the following

  • Breakdown of turnover – OTC, NHS(split into subcategories), Services

  • Gross profit margin

  • Comparative Figures to the Pharmacy industry

  • Staff cost as a percentage of income

  • Tax Efficient extraction planning

  • Exit Strategy

 

 

Discover How We Can Help!

 

Free Consultation And Site Visit

 

We offer a free consultation and site visit at our office. It is our belief at Valentis that you cannot assess a business from behind a desk, so we come to you, of course this doesn’t mean you cannot come to our office, so we can have a more formal discussion on how we can help you.

Our Visit Will Include:

  1. Assessment of EPOS

  2. Shop merchandise and OTC

  3. Assessment of

 

Free Accounts Review.

 

Now we are not saying that you accountant is doing bad job but rather are you getting what you need from you accountant. We start from the basics and offer a free review of you financial records.

 

First 3 Month Free – No Strings Attached

 

We are so confident that you will be happy with our services that we offer the first 3 month absolutely free.

 

What does that include.......

 

 

What Makes Us Difference

 

  • The Accounting Function   

 

The accounting function of many traditional pharmacies is over complicated for no reason and as such accountants take advantage of the situation. We aim to ensure the accounting function is seamless and so we start from the very beginning

 

  • Cloud based accounting – so you are always in control

  • Supplier invoices-

  • EPOS integration

  • Cash expense management

 

  • Additional Services

 

  • Paying supplies

  • Paying your staff

 

The fully managed service includes everything, so you don’t have to do anything.  

 

  • Our Pricing Structures

 

We base our pricing on how well the we create the process between yourself and us we believe in a fair price for a fair day’s work, we aim to become an extension to your business not just your accountants, the easier we make the process the better cost saving.

 

Call us to discover how we can help you?  

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