How Compounding Pharmacies Can Increase Front End Sales
Recently, a global pharmaceutical player decided to close two of its compounding centers in the United States, largely due to reduced profitability as a result of the changed reimbursement system. This defensive move serves as a wake up call for compounding pharmacies to open up additional sources of revenue if they want to prosper despite a trend toward reduced margins and tougher competition.
As pharmacies in Europe learned decades ago, the best way to accomplish this is by increasing sales of front end health and wellness related items and services. To succeed here, U.S. pharmacies will have to move from a business model focused on filling a maximum number of prescriptions, to one where Rx traffic is leveraged into higher sales of complementary OTC products and services.
Margins here are not controlled by anyone, and revenues depend exclusively on how well the product mix targets customer wants and needs, how professionally the customer is consulted and how attractive the items are displayed. Even the most desirable high-margin cosmeceutical and nutritional brands are willing to partner with an independent pharmacy – provided it offers an upscale, state-of-the-art look that corresponds to the exclusive image the brand aims to project.
Kunesa LLC – the world leader in pharmacy design and Gates Healthcare strategic partner – offers customized architectural solutions that allow pharmacies to differentiate from competitors and attract revenue-critical customers (such as women aged 30 to 70 with better education and higher income) in their region. All of our 80+ US clients were able to significantly expand their sales of high margin front end items, often by more than 100% in less than 12 months.
Please visit Kunesa's website or contact Gates Healthcare for more information.