Posted by Wendy YellinWith so much competition among pharmacies, it can be difficult for an independent pharmacy to gain traction in their local community. After all, larger chains tend to occupy every single corner in America, making it all the more important for community pharmacies to stand out.
Fortunately, there are some simple ways to increase your pharmacy profit. With the right pharmacy team and pharmacy programs, your store can be a hub of consumer activity.
It seems pretty straightforward, but make sure your team is doing the obvious and non-obvious things to best position your store effectively. Here are three simple steps you can take to better serve your customers and make your independent pharmacy more profitable.
Most of the time customers enter your store with a specific purpose in mind. It might be to fill a script, to purchase cosmetics or a greeting card. Key product placement is essential to a positive consumer experience and if your customers have trouble finding what they want, they are likely to become frustrated and stop shopping with you.
As a pharmacy owner, it is important to always analyze the layout of your store. Too often, owners fail to see things from the customer perspective so be sure and strategically place products in logical, convenient locations, have appropriate signage and prioritize popular products whenever possible. Also, think seasonally. For example, in the winter cold medicines should be easy to find. In the spring and summer, prime shelf space should feature sunscreen and allergy medication.
Additionally, items should be logically grouped so if someone is going to buy bandages, he or she may also want an antiseptic at the same time. When these products are placed close to each other, they will be easier to find and increases the likelihood of the consumer buying both products instead of only one.
It is not just about how the shelves are organized but what is on the shelves in the first place. Modern consumers are used to options. When they arrive in a store, they expect to compare and contrast different brands to find the best product at the best price.
To this end, similar products should be in the same aisle. If a customer wants to find pain medication, all the options should be readily available on the same shelf. This way, it is easy to compare brands, gauge prices, check out dosages, ingredients and more. In order for a community pharmacy to stay relevant, having the best selections in town is of vital importance.
By having enough brands on hand, every customer will find what he or she is looking for before checking out. This is all a part of providing a positive experience for customers, ensuring that they leave satisfied with their purchase. Just remember the context in which most people visit a pharmacy. Many customers visit the pharmacy when they or their loved ones are sick. This already causes enough stress. It is the job of the pharmacy staff to make them feel comfortable and help them as much as possible.
Although stocking your pharmacy effectively can make a huge impact on the bottom line, pharmacy employees also play a big role in increasing profitability through upselling. One of the easiest ways to increase profits is by encouraging your team to engage with patients and customers and be comfortable making recommendations or upselling.
Upselling is a common business strategy, in which employees leverage a conversation with consumers to get them to buy more. While it is important to never be too pushy in a selling context, pharmacy employees have a unique opportunity to provide targeted helpful product advice.
In a restaurant upselling means offering appetizers, alcoholic beverages and dessert to increase the cost of a meal. In a pharmacy it can be as simple as suggesting related products. When someone comes in to buy cold medicine, a friendly reminder that there is a good price on tissues or humidifiers might be effective. If a customer is picking up a box of diapers, pointing out the great deals on diaper cream or baby wipes might be a logical extension.
Employees should be well-trained to look for these opportunities, offering smart suggestions that appeal to a consumer’s specific needs. This will not only improve profits, but it can be a critical part of excellent customer service. A good upsell should never feel like a sales pitch. Instead, it should feel like one-on-one attention from a dedicated employee.
If you are interested in increasing profits at your independent pharmacy let’s talk. Schedule a free discovery call with an experienced Business Growth Advisor to get advice about leadership team development, increasing profitability and much more.
Article by pharmacy owners.