How To Increase Pharmacy Revenue

Independent community pharmacies have faced a decline in prescription profit margins over the last few years. Ultimately, this is due to the rise of chain and digital pharmacies, as well as the economic damage of Covid-19. Community pharmacies have had to find other areas in which they can capitalise to stay above water and survive as a business, such as retraining staff or reducing stock for example.

Increasing the revenue on these over-the-counter (OTC) sales and high-margin front-end products is the overall solution—but where do you start? 

Recognise the value of market research 

By conducting market research, you can use the collected data to determine which over-the-counter and retail products are currently trending and selling well. 

A study by Statista revealed that pain relief, cold and allergy medication, and vitamins/supplements represent billions of pounds worth of unit sales in health and wellness. 

You can leverage this data to ensure that you’re stocking your pharmacy accordingly, prioritising customer needs and competing more effectively.

Optimise your floor plan - switch it up!

The layout of your pharmacy can affect the amount of sales you make and enhance the overall customer experience - increasing your revenue even further by influencing additional sales. 

Your floor plan should be arranged so the products you hope to sell are arranged in plain sight - product placement works. For example, a customer might be looking for cold and flu medicine, and by placing related products, such as vapor rub, next to this display, the customer is made aware of this item and is more likely to purchase it.

It’s also important to pay attention to the traffic flow pattern in your pharmacy. To maximise sales and overall pharmacy revenue, move stock and fixtures accordingly. Play around with different layouts to find an optimal choice that creates a customer journey. Keep on top of rotating stock and test different floor areas—with your pharmacy counter as the customer service hub. Here, place items that may need pharmacist input to encourage conversation and advice.

Still struggling for ideas on how to increase your pharmacy revenue? Download our guide to ‘The Ultimate Guide to Pharmacy Marketing’ for all of our top tips!

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Train your staff to upsell and cross-sell 

Upselling and cross-selling are methods that can boost sales massively. Train staff to build relationships with customers and make relevant product suggestions based on the drugs patients are picking up or their ailments. For example, some medications can cause vitamin deficiencies, if these can be identified you have an opportunity to upsell the correct supplements.

Provide exceptional customer service

Providing exceptional customer service is one of the most effective ways to gain an advantage over your competitors—68% of consumers say they're willing to pay more for products and services that offer a good customer experience. 

Advise staff members to recognise repeat customers, and greet them by name. Engaging with patients, managing wait times, and displaying public health messages, is a sure-fire way to build trust. 

Read our blog here for more ideas on how you can deliver outstanding customer service at your pharmacy.

Develop your marketing strategy for your products and services

One of your goals as a pharmacist—besides providing care—is to ensure that customers are aware of what you offer, whether this is a product or a service. 

Without marketing your offerings, it becomes less likely that a sale will be made. So, to boost revenue, it’s vital to have a marketing strategy in place that communicates well. Marketing exists to educate customers on your business offering.