People love new and exciting things. Cater to this in your community by keeping up-to-date with the products and services your pharmacy offers.
Diversify your revenue and keep your patients and profit margins happy.
I don’t have to tell you that running a pharmacy is one of constant evolution, with slim profit margins from PBMs and increased competition from larger players.
For independent pharmacy owners, the pushback against traditional PBM models has become a driving factor in rethinking revenue strategies. In today’s market, it’s important to explore new avenues for growth and profit beyond the realm of PBM ties.
Let’s examine four strategies that you can implement to help diversify your pharmacy’s revenue and lessen your reliance on PBMs.
1. Diversify Your Front-End
While prescription drugs remain the cornerstone of pharmacy, there is untapped potential in diversifying product lines. Moving beyond the pill bottle is a key strategy to broaden your profit base.
OTC products, such as pain relievers and cold medications, can be high-margin items that complement prescription offerings and drive regular foot traffic. Enhancing your product mix with health supplements and wellness items caters to a growing patient interest in self-care and preventative health. Curating a selection of organic and natural health products could also differentiate your pharmacy and attract a niche market.
To expedite your selection process, we’ve compiled a curated list of essential products below that can substantially increase revenue for your pharmacy. We’ve also saved you time by recommending trusted partners that have been thoroughly vetted.
Gut Health – Nudora
In recent years, there has been a growing awareness and emphasis on the significance of gut health in overall well-being.
The gut, often referred to as the “second brain,” plays a pivotal role in digestion, nutrient absorption, and immune function. As scientific research continues to uncover the profound impact of gut health on our bodies, individuals are becoming more proactive in adopting lifestyles that promote a balanced and thriving gut microbiome.
Nudora supports gut flora with their 5 live strain probiotics that have been shown to reduce inflammation and help with weight loss.
Each capsule is embedded in vegetarian delayed-release capsules. A potent prebiotic & probiotic combination with 40 billion active live strains.
Fighting Viruses & Bacteria – CofixRX
Snotty noses, coughs, and colds are on no one’s to-do list. Help your community stay well with one of our favorite OTC products.
Most people know that iodine is an awesome germ killer. Our friends at CofixRX have harnessed this power to create an effective and easy-to-use nasal and throat spray solution.
Every person walking through your doors is a candidate for purchasing this product. It can help prevent illness and help you recover quicker. Not only is it effective, but it is also affordable!
NAD Tests – Jinfiniti
Offer patients cutting-edge health insights by incorporating NAD tests. NAD testing involves measuring levels of nicotinamide adenine dinucleotide (NAD), a critical coenzyme found in cells that plays a key role in energy production, DNA repair, and overall cellular function.
NAD levels are indicative of cellular health, and testing provides insights into the body’s ability to generate energy and maintain essential functions.
By assessing NAD levels, you can help patients gain valuable information about their cellular well-being, identifying areas for improvement or addressing health concerns. This testing is often associated with anti-aging and wellness practices, as maintaining optimal NAD levels is believed to contribute to overall health and longevity.
Jinfiniti, led by THE NAD expert Dr. She, has everything you need to begin providing your patients with reliable NAD testing and effective supplementation. Help your patients improve their energy and overall health.
This innovative approach aligns with the growing trend of personalized medicine. Not only does it contribute to your pharmacy’s reputation as a forward-thinking health destination, but it also empowers patients to take a proactive approach to their overall health and longevity.
Allergy Testing – Wyndly
Incorporating allergy testing into your pharmacy is a strategic move to not only enhance patient care but also boost revenue streams. Over 50% of the population experience respiratory allergies. There is a shortage of allergists, as noted by the extremely long wait time to get into an office. So many patients turn to OTC options to help relieve symptoms.
What if you could help them get RID of their allergies? Not just mask symptoms.
DiversifyRx has partnered with Dr. Manan Shah at Wyndly to bring reliable and efficient allergy tests to your pharmacy. You can help patients bypass expensive and time-consuming allergy shots by introducing them to sublingual immunotherapy (SLIT), which is offered as a treatment option after their allergy test through Wyndly.
Consider bundling allergy testing with other services or offering promotions to attract more patients. By providing allergy testing solutions, your pharmacy will become a comprehensive healthcare destination for individuals who are increasingly prioritizing their health and well-being. Learn more by clicking the link above, and you can sign up for your first set of test kits HERE.
Nitric Oxide Supplements – Approved Medical Solutions
Introducing nitric oxide supplements at your pharmacy can be a game-changer for your patients’ health and your business. Nitric oxide is known for its vasodilatory effects, which promote better blood flow and cardiovascular health.
The more nitric oxide is studied, the more it seems to do in our bodies. Improving nitric oxide levels can help patients with all types of conditions, from erectile dysfunction to weight loss to low energy to overall well-being.
While there are many nitric oxide boosters on the market, we recommend the product from Approved Medical Solutions. They work only with healthcare professionals and specialize in working with independent pharmacies, which is one reason we love them.
Another reason we love AMS’ nitric oxide is that it is oxalate FREE! This feature is great for your patients who have a history or propensity for kidney stones. Most nitric oxide supplements use beet products as a base, which makes their products high in oxalates.
Our last reason for loving AMS is that they have a fantastic, quick 10-second saliva test that you can use to find out if a patient needs a nitric oxide boost and to show that the supplement is working.
2. Diversify Your Clinical Services
I can hear what you are thinking… that’s what everyone has been saying for years, but how do we do it? I wish there were 1 simple answer to solve all your clinical service questions, but there isn’t. What we can tell you is there is a TON of opportunity to increase your pharmacy revenue by offering more clinical services.
What is a clinical service? Everybody seems to have their own definition. We like a broad definition. Any service that requires a licensed person to provide or oversee that service can be considered a clinical service.
With this definition in mind, here is a short list of our favorite clinical services that work really well in independent pharmacies.
- Remote patient monitoring (RPM)
- Chronic care management (CCM)
- Immunizations (regular and travel)
- Test and treat (doesn’t have to be Rx; see NAD above)
- RPh consults (hormones, weight loss, sleep)
- Educational classes
- Deprescribing
- PGx
3. Enhance Customer Loyalty
Personalized patient service is your trump card against larger chain competitors. Building genuine relationships, offering health consultations, and going the extra mile for patients can quickly create word-of-mouth referrals and develop a dedicated customer base willing to patronize your business for years to come.
So, how does creating loyalty help diversify your revenue streams? It is definitely playing the long game. As you build up trust with your patients, they will turn to you to help solve more of their problems. As you meet smaller and less urgent needs, they will eventually trust you with larger, more complex issues.
If you have high trust and goodwill with your patients, when you launch a new service or start carrying a new product, they are more likely to buy from you and try it out. This way, it becomes easier and easier to grow your pharmacy revenue over time.
4. Optimize Inventory Management
Keeping the right stuff in stock and getting rid of the bad stuff is critical for improving the return on your inventory investment and keeping cash flow high. Too many times, pharmacy owners add to their inventory; they never take it away. This behavior can lead to cluttered shelving and too much of your cash tied up in inventory.
As your patients’ desires change, so too should your shelves. A product that was hot 2 years ago might be as cold as ice now. There is no benefit to letting items collect dust. Evaluate what is selling and not selling to determine what to carry and how much. This system will allow you to have the cash to bring in new products more frequently and remain a must-have for your community.
We are big fans of diversifying your revenue streams (hey, it’s in our name!). If you need any help, please reach out, and feel free to dive into our free content, which you can access from diversifyrx.com.
For more ways to diversify your product offerings, read Pharmacy Profit Top 5 Non-PBM Revenue Strategies.
