Words of Wisdom for Pharmacy Owners
I would like to share with you some words of wisdom that I have codified from the hit TV show
No matter which holiday you celebrate, I extend my warmest greetings for this holiday season to each and every one of you.
With that in mind, I would like to share with you some words of wisdom that I have codified from the hit TV show “Shark Tank.” The lessons closely parallel information I have been sharing with your fellow pharmacy owners for many years, though the sharks presented some of them very poignantly.
Here are a few of their lessons, along with my commentary:
1. Know your numbers.
The sharks suggest that you know your breakeven cost, as well as the cost of acquisition of an average patient. I would add that you should also know the costs that affect each transaction. For example, know your breakeven point for the various prescriptions that you fill and the services you provide.
2. Be passionate about your business.
Be even more passionate about the money and wealth it produces. I would suggest that you become more analytical because your passion, when misdirected, can lead to more work, more hours, more stress, and less reward. Your analytics should include the 80/20 principle as a foundation for decision-making.
3. Have really great margins.
The sharks are very steadfast about one thing: there is no substitute for having really great margins. I learned that lesson as a very young retailer from my banker. The most profitable pharmacies in the country—the ones that produce the greatest wealth—are the ones with exceptional margins. My files have documents of ones with annual 61% to 66% gross profits, and that’s for the total store! However, those margins can only be had when you have the right business model.
The sharks on “Shark Tank” have emphasized these important business principles many times over. They are indeed basic and fundamental from my viewpoint. However, they comprise just 3 of 12 that I have codified thus far. I will present an additional 3 early next year.
The Pharmacy Sage can be reached at (518) 346-7021 or Lester@ThePharmacySage.com.