Give your pharmacy profit a boost in the new year by finishing this year strong.
As the year winds down, most pharmacy owners are thinking about holiday parties, family gatherings, and perhaps which cookies they can justify eating without too much guilt instead of their pharmacy profit.
But for highly successful pharmacy owners?
We’ve got a whole different set of priorities—tax planning, inventory counts, and ensuring we set the stage for an even better year ahead.
December isn’t just about peppermint lattes and snowflake decorations; it’s a critical time for pharmacy owners to finish strong.
Let’s break down the exact steps you can take to ensure your year ends on a high note and your pharmacy is ready to thrive in 2025.
Step 1: Get Your Financial Ducks in a Row for Better Pharmacy Profit
Before the ball drops in Times Square, it’s time to take a good, hard look at your books. Your financials tell the story of your pharmacy’s year, and now’s the time to make sure that story ends on a positive note.
What to Do:
- Review Your P&L Statement: Pull out your profit and loss statement (or get your accountant on the phone). Do the numbers look right? Are all your expenses accounted for (I have been known to accidentally use the wrong card when paying a bill!)? Is net pharmacy profit higher or lower than expected?
- Optimize Your Tax Situation: Talk to your accountant about potential end-of-year tax strategies, like prepaying expenses for 2025 or making investments in new equipment that can be depreciated. Most tax savings strategies have to be deployed before the end of the year. Whether you had a great or horrible year, always make time to optimize your tax strategy.
- Don’t Leave Money on the Table: Work with a savvy business tax specialist who can guide you on optimization strategies such as deducting inventory, saving for retirement, and maximizing deductions.
Step 2: Conduct A Pharmacy Inventory Audit (Yes, It’s Worth It!)
No one loves doing inventory counts, but they’re as essential as keeping up with pharmacy licensure renewals. An accurate annual inventory count is not only required by the IRS, but it ensures you’re managing your largest financial asset optimally.
What to Do:
- Identify Dead Rx Stock: Return what you can to your wholesaler, use platforms like MatchRx to sell to other pharmacies, contact local pharmacies, and reach out to past patients or prescribers to generate additional prescriptions so you can dispense the inventory.
- Crunch Your Inventory Numbers: Your inventory will make or break your cash flow. Is your inventory levels where they are supposed to be? Do you know your target numbers? Get your accountant to help or take our Inventory Optimization Course and potentially recapture tens of thousands of dollars that are uselessly on your shelf.
- Prepare for Year-End Discounts: If you have cash-based products (like supplements), December is a great time to bundle them into holiday promotions. Everyone loves a good “Buy 2, Get 1 Free” bundle!
- Refill Profitable Rxs Before January 1: We all know the insurance chaos that happens at the beginning of the year. Run a report for profitable Rxs and get those filled one more time before your patients’ benefits reset.
Step 3: Insight Into Your Pharmacy Profit—Reflect on This Year’s Wins (and Challenges)
Take a moment to give yourself a pat on the back. Running an independent pharmacy is no small feat, and you’ve navigated another year of PBM shenanigans, staffing challenges, and changing regulations.
What to Do:
- Celebrate Your Wins: Did you launch a new service, like compounding or weight loss programs? Did you grow your social media following or bring in new patients through community outreach? Write down what worked and why it worked.
- Analyze Your Pain Points: Was cash flow tighter than expected? Did you lose patients to a chain competitor? Was your team more disengaged? Identifying challenges isn’t about beating yourself up—it’s about finding solutions so you can increase your pharmacy profits while keeping your service levels high.
- Survey Your Team and Patients: December is a great time to ask your staff and customers for feedback. What are you doing well? What could you improve? Their insights might surprise you. Don’t forget to ask yourself, too!
Step 4: Set the Stage for Better Pharmacy Profit with Strategic Planning
The new year is just around the corner, and there’s no better time to start planning than right now. The saying goes, “A goal without a plan is just a wish,” and pharmacy owners can’t afford to wish their way to success. If only wishing worked to increase pharmacy profits!!
What to Do:
- Set SMART Goals: SMART stands for Specific, Measurable, Achievable, Relevant, and Time-bound. Instead of saying, “I want more patients,” try, “I want to add 20 new patients a month in Q1 2025 through our referral program.”
- Create a Marketing Calendar: Decide on your monthly focus areas (e.g., weight loss in January, allergy prevention in March) and outline your promotional strategies. Social media, email campaigns, and in-store signage should all work together. Next week’s blog will be all about creating your pharmacy marketing calendar!
- Invest in Staff Training: If you want to expand your services, make sure your team is ready. Whether it’s immunization training, product knowledge, or customer service workshops, well-trained staff can make or break your success.
Step 5: Spread Some Holiday Cheer
Finally, don’t forget to connect with your community during the holiday season. Small, thoughtful gestures can leave a lasting impression on your patients and your team.
What to Do:
- Host a Holiday Open House: Invite patients to stop by for free hot cocoa, health screenings, or small giveaways. It’s a great way to build goodwill and remind patients why they love your pharmacy.
- Recognize Your Team: Your staff worked hard all year. Whether it’s a holiday bonus, a team lunch, or handwritten thank-you cards, let them know they’re appreciated.
- Support Local Causes: Partner with a local charity for a toy drive or food donation campaign. Giving back to the community not only feels good but strengthens your pharmacy’s reputation as a community leader.
Your Year-End Pharmacy Profit Success Checklist
- Review your financials and implement tax-saving strategies.
- Conduct an inventory audit and clear out dead stock.
- Celebrate your wins and analyze your challenges.
- Set SMART goals and create a marketing plan for 2025.
- Spread holiday cheer to your patients, team, and community.
As an independent pharmacy owner, you’re not just running a business—you’re building a legacy. The work you put in this December will pay dividends in the year ahead. So grab that peppermint latte (or your drink of choice), roll up your sleeves, and finish the year like the pharmacy badass you are!
If you are an ambitious pharmacy owner and want the exact path to maximizing pharmacy profits, I invite you to join Pharmacy Badass University. We have plans for every money and time budget, and I back them all up with a 100% money-back guarantee.
