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The pharmaceutical industry is in major transition and, for those with plans of starting a pharmacy in 2017, considerations should be made regarding certain current trends. For years, large pharmacy companies have been taking the place of the small independents, putting them out of business in many areas by offering huge inventories and cut-rate prices. Recently, however, that trend has started to reverse itself as consumers realize they actually prefer doing business with smaller, more personalized businesses that make them feel like the customer is king.
More independent pharmacy owners are learning to not only survive but to thrive in today's turbulent pharmacy environment by giving their customers what they most want – convenient shopping in a warm, friendly environment where the staff knows you by name and goes out of their way to show appreciation for your patronage.
What Smaller Independents Offer
If you're starting a pharmacy in 2017, chances are it'll be an independent shop, even if you elect to go with a franchise operation. It's estimated that about 41% of Americans buy their prescription medications through large chain stores and the industry is now down to just two large chains fighting it out – CVS and Walgreens. Rite Aid is a distant third. With more than 14,000 stores nationwide between the top two, there's no question that big-box pharmacies are convenient. Their operations, however, are also the most frequently criticized, with survey respondents rating them #3 in satisfaction, behind grocery store pharmacies (#2) and independents, who consistently rate #1 in customer satisfaction ratings for the level of care received. That #1 level of care is a big reason why customers are flocking back to the smaller independent drugstores.
2017 Trends in Pharma
In a survey conducted by Consumer Reports with more than 43,700 respondents, it was learned that 42% of drugstore patrons are not talking to their pharmacists about:
- Their medications
- Their dosages
- Potential drug interactions
- Their health conditions
According to a 2015 Pharmacy Times survey it was learned that big-box pharmacies only earn between 65-70% of their revenue from the sale of prescription medicines. For independents, this number is in excess of 90%. Because of this, independent druggists are prescription service “specialists,” but they also need to learn to value clients in a broader sense with other revenue generating services in mind. These include:
- Front-end merchandising sales
- Various clinical services such as immunizations
The big trend to follow for those with the aim of starting a pharmacy is to create a shopping environment and a customer experience that makes people want to stay longer in your store and come back again when they have additional need for your products and services. Adding a coffee bar or a soda fountain with an area where folks can sit, relax and visit with friends is a trend that was popular 100 years ago and is coming back into fashion today. Whatever can be done to make your store warmer, friendlier and more comfortable for your clientele will pay you bottom-line dividends.
Specialty Medicines
Distribution of specialty drugs is the fastest-growing part of today's pharmaceutical industry and anyone currently starting a pharmacy should definitely look into this huge potential income stream for their new store. While only about 4% of patients use these specialty meds, their high cost makes up for more than one-third of total prescription drug spending and this number continues to increase.
New trends continue to favor independent pharmacies with sound customer service programs who specialize in providing clients with a rewarding customer experience. Give them what they crave and they'll be back for more!
