417 Ravenaux Dr. Southlake, TX 76092
561-379-7750 DiversifyRx.com
INSIDE THIS ISSUE
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Second Quarter Check-In: Are Your 3 Vital KPIs on Track? Stop Leaving Money on the Counter — Boost Your OTC Sales Now Are Negative Margin Prescriptions Draining Your Profits? Why Your Top 5 Prescriptions Matter More Than You Think
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Secrets to Smart Business Innovation
Your Net Profit Dollars Are Talking — Are You Listening?
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secondary wholesalers. We can bet that their prices will almost always beat post- rebate primary wholesaler prices. Don’t be afraid to shop around and look for the best prices for your generics! STRATEGIZE TO REDUCE NEGATIVE MARGIN PRESCRIPTIONS. • Audit your prescriptions: Run a monthly report to see which prescriptions cost you money.
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Set a goal and stick to it: If your negative margin percentage is
This might sound extreme, but most patients don’t mind splitting their prescriptions between providers. We’ve had great success recommending that patients get their expensive brand-name medications from mail-order or Amazon pharmacies while continuing to use our independent pharmacy for everything else. RetailMyMeds can help you coordinate these mail-order or Amazon prescriptions so you can continue offering these brand- name drugs without losing money. When explained properly, patients are more than happy to make that adjustment— especially if it keeps their local pharmacy in business. 2. Losing Money on Generic Drugs Unlike brand-name drugs, you do have control over generic purchasing. If you’re losing money on generics, it usually means you’re buying poorly. Your sourcing strategy needs a major overhaul.
high, work toward reducing it step by step. Start with small, realistic goals and always track your progress. CLOSE THE DRAIN BEFORE YOU ADD MORE WATER. To grow your pharmacy, you need to start with a strong foundation. Too many owners focus on increasing revenue without realizing their negative margins are swallowing those gains whole. Before spending time and energy trying to boost your profits, ensure you’re not actively losing money on what you’re already doing. Fix the leaks first, and then you can focus on filling the bucket. The pharmacies that thrive in today’s market aren’t the ones filling the most prescriptions. They make smart, strategic decisions to keep every dollar they earn. Now’s the time to take control of your negative margin prescriptions and put that money back where it belongs — in your pocket.
Identify patterns and make adjustments accordingly.
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Use alternative dispensing strategies: For brand-name drugs that are consistently reimbursed below cost, guide patients toward mail-order or Amazon pharmacy. Modify your generic purchasing: If you’re losing money on generics, work with secondary wholesalers such as Real Value Rx, BluPax Pharma, and JamsRx. You can even try marketplaces such as RxCherryPick, PrimeRx Market, or EzriRx.
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One effective approach? Start purchasing your generics from
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