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.
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.
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
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%|