The KPI That Rules Them All
IF YOU’RE NOT TRACKING NET PROFIT, YOU’RE GUESSING
You’ve got a million things demanding your attention — inventory management, payroll, patient care, compliance, and marketing. But ultimately, one number determines whether you’re winning or losing: net profit dollars. This is the money you keep after paying all your expenses. It’s your business’s bottom line, the metric that tells you if your pharmacy is thriving or just scraping by. Unfortunately, many independent pharmacies are operating in the negative when it comes to net profit dollars, and that needs to change. You can fill more prescriptions, expand services, and drive traffic all day long — but if your bottom line isn’t improving, you’re just spinning your wheels. The key is strategic growth. Let’s break down how to track, analyze, and, most importantly, increase your net profit dollars so your pharmacy is set up for long-term success. FOCUS ON WHAT MOVES THE NEEDLE. We’ve already covered steps to boost net profit dollars: evaluating three vital KPIs, eliminating negative margin prescriptions, increasing OTC sales, and maximizing your most profitable prescriptions. If you haven’t implemented these yet, you need to start there. Fixing these fundamental areas will create an immediate and lasting impact. However, once you’ve addressed the obvious leaks in your business, the next step is working smarter, not harder. This means taking a big-picture approach to where your pharmacy is headed. STRATEGIZE PROFIT GROWTH. Filling prescriptions is only part of the equation. To actually increase net profit dollars, you need a sustainable plan. That means: • Tracking trends over time: If your net profit isn’t steadily increasing each month, find out why. What’s holding you back? • Investing in high-margin opportunities: Not all revenue is created equal. Focus on areas with higher profitability, such as cash-based services, clinical programs, or niche prescription markets.
• Optimizing operations: Even small efficiency improvements, such as smarter staffing, better inventory management, or renegotiating costs, can add up to significant savings over time. • Leveraging patient relationships: Patients who trust your pharmacy are more likely to follow your recommendations for additional OTC products, new services, or long-term medication management.
MAKE NET PROFIT DOLLARS YOUR PHARMACY’S PRIORITY.
Every decision you make impacts your bottom line. If you’re not actively working to increase net profit dollars, your business isn’t truly growing. It’s just surviving. So, ask yourself: Is my pharmacy more profitable this month than last month? If the answer is no, it’s time to take action. Track your numbers, adjust your strategy, and ensure every part of your business works toward one goal — increasing the money you get to keep. Because at the end of the day, profitability isn’t just about staying open — it’s about building a thriving pharmacy that serves your community for years to come.
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