Powerful Strategies for Smarter Purchasing How Smart Wholesaler Choices Can Save Your Pharmacy
You can find lower prices. Surprise! Your primary wholesaler isn’t giving you the lowest price, even AFTER the rebate. The truth is that the Big 3 are screwing you over. They are grossly overcharging for generics while also giving you crappy payment terms. Their complicated pricing and rebate matrix make it impossible to know what you are really paying for any particular product. They also hold your money for months before giving back a sliver in the form of a rebate. Overpaying for generics to “earn” a brand rebate is a losing game. In the end, you’re just spending more. Pharmacies can become too focused on brands and lose the big picture. But there’s no winning against a primary wholesaler. It’s like playing the house. The house will always win since they know
Before you start working on increasing your profits, you first need to understand where your current profit stands. It’s a simple math problem: What’s the difference between how much the PBM pays and how much you pay for the drug? Subtract the two, and you have a profit (or even a negative profit). Now, there are only two ways to increase your profit: earning more from your PBM or spending less on a drug. Clearly, only one of these tactics is fully within your control. This is why we constantly tell our members to ensure they buy their stock at the best NET PRICE possible (don’t go chasing rebates). Most pharmacies purchase anywhere from 90% to even 100% of their stock from a primary wholesaler. But this is no longer the best way to operate and can actually hurt both your cash flow and profitability. Shift your mindset and realize that to thrive, you need to be in an open relationship with wholesalers . Why?
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