Focus on the Front-end

As seen in the Upsher-Smith e-book, Front-End Opportunity: Capitalizing on the Highly-Profitable Pharmacy Front-End

As discovered during the HDMA-sponsored 2012 Independent Pharmacy Shopper study, the front-end provides a 38% gross margin, while the total store average gross margin according to the 2012 NCPA Digest, is only 23%. HRG’s Profit Variables Calculator can help you gauge where combined efforts can boost your front-of-store sales and impact your profitability.

Start by entering your store profile information. An initial financial statement will be generated by this input. Although it may not match your actual financial statement, it is a baseline profit and loss estimate.

Adjust each profit variable to the percentage improvement you think you can make using the slider bar. You can modify both the Front-End and Rx areas. Adjustments to the Front-End are more controllable than Rx-related factors as discussed in the Upsher-Smith eBook on this topic.

Information entered into the calculator is not captured, shared, or stored.

The fields with the red border are required.

HRG Profit Variable Calculator

Enter Profile Information     Beginning Financial Statement                
Rx dispensed per day
Annual Sales
% Rx sales
Cost of Goods
No. days open per week
Gross Profit
Operating Expenses
Profit Variable Improvements: Front-End
Net Profit
Percent Change
0 10 20
Transaction Volume Increase
Estimated Rx Sales
Conversion Rate Increase
Estimated Front-End Sales
Retail Prices Increase
Cost of Goods Reduction
Adjusted Financial Statement
% Increase
Operating Expenses Reduction
Annual Sales
Cost of Goods
Profit Variable Improvements: Rx
Gross Profit
Percent Change
0 10 20
Operating Expenses
Transaction Volume Increase
Net Profit
Conversion Rate Increase
Retail Prices Increase
Estimated Rx Sales
Cost of Goods Reduction
Estimated Front-End Sales
Operating Expenses Reduction
You just uncovered a profit of:

Notice on the Adjusted Financial Statement how the profit variable adjustments may impact your sales and profitability.

You may PRINT the before-and-after statement or RESET as often as you would like to continue discovering how incremental changes affect your profit.

Disclaimer:
This calculator is a tool to help project potential profit gains. Approximated financial statement and results from profit variable adjustments are for demonstration purposes only. No guaranteed results are implied or predicted through the use of this estimator. HRG hereby disclaims any Operating Expenses liability associated with the accuracy of the calculator and/or outcomes from actions taken as a result of its use.

Sources: 2013 NCPA Digest; Kaiser Family Foundation; Kaiser-IMS Health data; HRG proprietary data; HDMA independent pharmacy shopper study - 2012

*The beginning financial statement was developed using the following assumptions based on data reported in sources listed above.

Base information assumptions
Average Rx retail: $56.04
Average Rx cost: $43.71
Average Front-end retail: $7.68
Average Front-end cost: $4.76
Rx transaction rate: 90%
Operating Expenses: 20.2%