If you're running an independent pharmacy and are struggling with tight profit margins, you're not alone. Staying competitive in today's business climate isn't easy, with stiff competition from those well-financed corporate chain stores, falling prescription reimbursement rates, and new regulations associated with health care reform, putting the squeeze on your bottom line. However, there are things you can do to improve your bottom line, despite these challenges.

Tighten Up Your Pharmacy Workflow

For the average independent pharmacy, well over 90 percent of revenues come from prescription sales, so maximizing the efficiency of your pharmacy workflow is top of the list when it comes to increasing pharmacy profits. That means taking a good long look at how work is getting done day-to-day and taking steps to eliminate any inefficiencies in that process. A tightly-organized, updated, and well-equipped workplace with efficient, well-defined workflow policies can really ramp up productivity – which, of course, improves profitability.

Carve a Niche in Your Community

Making your pharmacy uniquely relevant to your community is a great way to increase your customer base, thereby improving pharmacy profits. Spend some time looking into the character and needs of the neighborhood. Are there lots of elderly residents in your area, or an abundance of families with children? What health conditions are most prevalent in the area? Do you have a lot of neighbors who are very health conscious, interested in supplements and herbal products? Finding out about your neighbors can help you tailor your products and services to their needs, helping you to bring in more customers and build better relationships with existing ones.

Make it All About Your Customers

You can't compete with the big box stores and national pharmacy chains on price, but you can certainly outdo them on customer service by making your store shine in comparison to the impersonal, assembly-line atmosphere of the typical corporate retailer. Make interacting with your customers a priority. Know who they are and what they need, and greet them by name as they walk in the door. Make a point of asking them on occasion if there are products or services that they need that you do not currently provide, and what you might be able to do better in order to create a better customer experience. These small steps can go a long way in creating customer loyalty – the backbone of any successful independent pharmacy.

These three steps can go a long way towards improving your tight profit margins. Of the three, improving your pharmacy workflow should be your first priority, since that's where your biggest profit potential lies, and increasing efficiency in your dispensing process will likely free up more of your time to work on the other two.