oh yeah, did you make a buck or two??
Update on our store!
- Thread starter Doctor M
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oh yeah, did you make a buck or two??
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LOL.. it's like this.. everything is a buck.. or 2 for a dollar or you get the idea.
Cost base for these items is about $0.25 to $0.80. So obviously if you sell alot of $0.25 items for a $1.00... margin is good. But typically those items are junky. Now lower margin high cost items are really nice and that's what bring people in the store.. all in all, you want to keep your cost at about $0.50 per item and be mindful of the shipping cost. But in order to sell $40,000 to $50,000 items per month, you're going to be moving 40,000 to 60,000 pieces of merchandise.. that's labor intensive.
Purchasing, Displaying, and inventory turnover is the key and I don't believe you'll have time to work pharmacy and run a dollar store part time as it's a full time job. Then again, it's a nice little business you can start with a relatively low overhead.. about $60,000 will get you a trailer full of junk to get you started.. and probably another $40,000 to $60,000 for everthing else.
It's a fun business and when all else fails, I know I can go back and do it and make a ton of money. Those little junky mom and pop dollar stores around poor neighborhood typically don't merchanise very well. The guy I sold to...ended up opening like 2 or 3 more stores and then sold them all... Later I heard he didn't have to work for a while and was just kicking back.
Sounds like fun actually...i dunno, perhaps it would be hard to do both, and i wouldnt want to abandon the pharmacy cause patients come there to see myself and my partner...but on the other hand, we have an wxceptional new pharmacist that people really like...So we will see...I like the numbers you provided...Doesnt seem to bad...
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$20,000 to $30,000 first month is expectable... but purchasing must be done constantly. You can't sit in your office purchasing...you need to travel to wholesalers.. LA, Chicago, NY, and Canada to actually see the items and buy. But remember, if the gross sale for the day is $1,500...that's 1,500 items that have to be restocked daily.. it's a lot of physical work. Also, there are major chain competitions such as Dollar Tree and 99cent Only stores...and their merchandising is typically better than your typical dollar stores. But when done right, you can almost have a boutique type of dollar store.. you'll need minimum 5,000 sq/ft but 10,000sq/ft is better... and you'll need more than a trailer to fill that up.
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Bingo, shuffleboard, flea markets, etc.
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So I've started to read this thread and I just wanted to say CONGRATULATIONS Doc M. It is nice to read a success story esp. after hearing everyone else talking about how hard/impractical/impossible it is to get a project like yours started, much less being profitable.
I'm in NC and my gf goes to Johnson & Wales culinary. She said there was a retired pharmacist who was there as well because he wanted to learn how to cook like a pro for parties and all that stuff since he didn't have to work anymore (I think he was in the same boat as you.) Yeah it's school and all but maybe going back to learn something like cooking works for you?
I'm always of the opinion of doing a job that teaches you something practical to real life. Heck, you could go work at Bestbuy and get their discount (wholesale price of the item +5% more is what you pay) and learn about all the electronics and all that jazz. I lasted as long as I did there simply because I didn't know much about cameras, tvs, video game systems, home appliances, mp3 players, etc. (and cables were like a dollar or 2 a piece rather than 45).
I'm in NC and my gf goes to Johnson & Wales culinary. She said there was a retired pharmacist who was there as well because he wanted to learn how to cook like a pro for parties and all that stuff since he didn't have to work anymore (I think he was in the same boat as you.) Yeah it's school and all but maybe going back to learn something like cooking works for you?
I'm always of the opinion of doing a job that teaches you something practical to real life. Heck, you could go work at Bestbuy and get their discount (wholesale price of the item +5% more is what you pay) and learn about all the electronics and all that jazz. I lasted as long as I did there simply because I didn't know much about cameras, tvs, video game systems, home appliances, mp3 players, etc. (and cables were like a dollar or 2 a piece rather than 45).
Doctor M, your story of success is surely an inspiration to all of us! I represent the third generation in our 50-year plus family pharmacy, www.butlerpharmacy.com. I stumbled upon your story in searching for info on rx30. Our fossil of a processor PDX can not keep up with today's tech! We also are using RMS presently and I was wondering how well your Rx30:RMS setup complement each other.
Best of luck to ya, friend!
My grandparents live in Longboat, so I'll have to stop by and checkout this awesome CVS killer 
Best of luck to ya, friend!
My grandparents live in Longboat, so I'll have to stop by and checkout this awesome CVS killer - Joined
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Doctor M, your story of success is surely an inspiration to all of us! I represent the third generation in our 50-year plus family pharmacy, www.butlerpharmacy.com. I stumbled upon your story in searching for info on rx30. Our fossil of a processor PDX can not keep up with today's tech! We also are using RMS presently and I was wondering how well your Rx30:RMS setup complement each other.
Best of luck to ya, friend!
Do you use ABC as a GNP?
Yes, we have been a GNP member since introduction. We are now GNP Premiere, as well. Every month or so ABC will send someone in to help out if our OTC needs updating or cleaning up. This really helped with the whole McNeil fiasco and keeps our product mix current.
I kinda misread the question. To answer correctly, we do use Amerisource and have used them exclusively for many years. We were with Bergen Brunswig before the merge. Only now are we looking at other vendors, such as VIP and Master's. ABC's prices can be quite expensive from what I gather.
from what i heard, ABC doesnt offer rebates. is that true? We use Cardinal and API and get some great rebates.
According to volume? Generics only? We get certain rebates pertaining to a few things: 1. How much GNP product we buy and sell 2. Volume discount on GNP vials we puchase through Rexam. and 3. Distributing certain "ProX" generics.
I beleive that is all, I would have to check.
What type of rebates do Cardinal and API offer?
I beleive that is all, I would have to check.
What type of rebates do Cardinal and API offer?
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Hey guys,
I lurk here now and then, and I'd thought about asking this before, but didn't feel it worth a thread - but it fits here!
Anyway, do these private pharmacies typically fill routine orders? I had previously assumed they only did specialty compounding and whatnot. Also, how much more expensive do they tend to be? I'd like to give business to small business, given all the crap the big chains catch here.
I lurk here now and then, and I'd thought about asking this before, but didn't feel it worth a thread - but it fits here!
Anyway, do these private pharmacies typically fill routine orders? I had previously assumed they only did specialty compounding and whatnot. Also, how much more expensive do they tend to be? I'd like to give business to small business, given all the crap the big chains catch here.
Yes, we fill routine orders. Please support the small independents and send all patients that are willing to try them! We are patient oriented and have lots of time to talk to them!
Rebates are based on the generics you buy...you get percent rebates back every month on all generics you purchase. With API, you get a percent rebate check at the end of the year of your total generic purchases in addition to your monthly generic rebates. PM me with any other questions.
Its been awhile since i posted an update.
This month we will hit over 4000 rxs. The growth is still there, but its leveled off a bit...We are looking at other avenues such as compounding...So far so good..no complaints...hours are good, little stress...until next time...
This month we will hit over 4000 rxs. The growth is still there, but its leveled off a bit...We are looking at other avenues such as compounding...So far so good..no complaints...hours are good, little stress...until next time...
Flu shots are now available at Lifecare! Did 3 yesterday in a matter of minutes of getting my certification from the state! Whats next??? Maybe an NP onsite as a walk in clinic?
http://ww2.doh.state.fl.us/irm00Praes/PRASINDI.ASP?LicId=30359&ProfNBR=2201
http://ww2.doh.state.fl.us/irm00Praes/PRASINDI.ASP?LicId=30359&ProfNBR=2201
Not really. Steady business. Retail business tough. ALF business steady...Owning a small business is never stable. Lots of ups and downs! But so far so good.
Just a trivial misspelled word under Services < Competitive Price < "competitores"
I hope your business is still doing well. Any update for us?
I hope your business is still doing well. Any update for us?
Just a trivial misspelled word under Services < Competitive Price < "competitores"
I hope your business is still doing well. Any update for us?
2013 update:
Retail business is stagnant. For every new customer we get, 2 die. sad. Anyway, retail business is extremely competitive. My partner has had some great ideas to get people in the door, but we are working on staffing issues. Reimbursements are much lower than when we opened. Everything is MAC. The ALF business is growing slowly. Reimbursements are better in long term care, but costs are higher due to packaging. We are up to 300 beds, small, but still good for 2500+ scripts. The compounding section is slow to come; clean room is built but we are waiting to see what the new laws and regulations will be for sterile compounding. We would hate to proceed and find out we need to start over. As soon as the laws kick in (if any), we will proceed with licensing and staffing. Staffing will include an experienced sterile compounding pharmacist and technicians with exceptional sterile technique. That is one part of this project we will not overlook. We might just hire someone to oversee sterile techniques and make sure everything is sterile and up to 797 standards. Other than that, as soon as the compounding kicks off, we will look at retail store number 2.
buisness related matters are always done in store during business hours. Except when my partner and i go out to dinner for business related matters. Yes, we handle all during our hours of operation. We hired a business office manager to do all of our paperwork (pay the bills, license paperwork etc etc)
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Life comes first!
I always like reading your updates Doctor M.
I was sad when you got involved in a political argument here and said you were not going to post anymore
Life comes first!
I always like reading your updates Doctor M.
I was sad when you got involved in a political argument here and said you were not going to post anymore
Im still here, on a limited basis. mostly roaming around.
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There is a lot to be optimistic about though. I billed a 30 day supply of generic Plavix and made 50 bucks the other day. These new generics (Plavix, Lexapro, Avapro, Seroquel) you make some real money on.
I've also started using Gensource as a secondary wholesaler. Great prices on Gabapentin and shortdated stuff. I paid $0.01 for a 500 count bottle of Gabapentin 300 and donepezil that goes dead at the end of the month.
Dollar stuff moves awesome. Much better than the other OTC stuff.
I still think retail pharmacy is a high reward type of business but the days of paying $0.50 for a generic and bring in $15.00 are long gone.
I've also started using Gensource as a secondary wholesaler. Great prices on Gabapentin and shortdated stuff. I paid $0.01 for a 500 count bottle of Gabapentin 300 and donepezil that goes dead at the end of the month.
Dollar stuff moves awesome. Much better than the other OTC stuff.
I still think retail pharmacy is a high reward type of business but the days of paying $0.50 for a generic and bring in $15.00 are long gone.
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Congrats, I am a community pharmacist resident and I have been getting more disappointed in the lack of independent pharmacies out there and think it would be amazing to work at one.
Way to represent the profession!
Way to represent the profession!
Very glad you are doing well. And yes, some generics still do pay well. The psyche drugs will always pay well, netted $241 on 120 tabs on generic trileptal, but then again generic seroquel is MAC by some PBMs already and the profit is minimal. It is like a huge lottery sometimes. The retail business is a good business if you can turn that profit. Making revenue is no problem, it is that profit that can be difficult. Volume volume volume. It is the only way to grow and stay in business.
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Ive noticed that with Seroquel. The other day I got reimbursed $105 for for 30 generic Seroquel 100. I felt like we'd hit the lottery.
With Medicaid I get paid $18.00. You still make more money than you would for Lisinopril/Metformin/Ibuprofen but not what you should.
I think a lot of it is in getting your cost of goods down. I check 6 different wholesalers for my generics and I'm not above calling and negotiating with secondary wholesalers. You should be able to make a good living on 2-3 hundred scripts a day. If you can't we're in the wrong business.
With Medicaid I get paid $18.00. You still make more money than you would for Lisinopril/Metformin/Ibuprofen but not what you should.
I think a lot of it is in getting your cost of goods down. I check 6 different wholesalers for my generics and I'm not above calling and negotiating with secondary wholesalers. You should be able to make a good living on 2-3 hundred scripts a day. If you can't we're in the wrong business.
Do you have contracts with a wholesaler mandating you had a certain % of business with them? Indy I worked at had to be mostly Cardinal, don't remember the exact numbers, but they could use some others here and there.
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Hey Dr. M! Need a status report. Hows it going?
Update:
We are moving along. We have diversified into compounding, sterile and non non sterile. Hired a compounding pharmacist. Waiting on the state to approve the clean room. We def are moving toward the compounding and LTC aspect of pharmacy. Script count is the same, but our GP and NP have increased dramatically due to the compounding. Business is great. I have 2 ALFs (120 bed LMH) and a 10 bed standard ALF that i own. So things are good. more than good, things are great. But i stay modest and pretend like things are bad.
We are moving along. We have diversified into compounding, sterile and non non sterile. Hired a compounding pharmacist. Waiting on the state to approve the clean room. We def are moving toward the compounding and LTC aspect of pharmacy. Script count is the same, but our GP and NP have increased dramatically due to the compounding. Business is great. I have 2 ALFs (120 bed LMH) and a 10 bed standard ALF that i own. So things are good. more than good, things are great. But i stay modest and pretend like things are bad.
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Yep...now it's my turn. I've been thinking about this since Dr. M first opened his store. I'm exploring the acquisition route though. Easier to get a loan with an established store that has a track record of good financials.
I give Dr M the credit. His success is what planted the seed. Meeting a local successful independent owner who showed me his financials and business model is what finally pushed me to make a move. It's a lot harder than it used to be but it's not impossible. Walgreens, CVS and Wal-Mart make it easier because they have such crappy customer service.
People crave attention and customer service because you don't get it anywhere any more. I went to Target last week and had a cashier ring me up who never said one word to me. Not one word! It's not hard to beat every retailer out there on customer service.
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Working on it!
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Hello Doctor M. My name is Tony. I recently opened a pharmacy and have a few question I would like to have you help me with. I have been referred to a few group homes and one of them wants to have me start a service with them as soon as Monday (01/06/2014) but I needed to know all that is required to make sure that I am competent in delivering this service for them. They have indicated that they want to work with me but if I don't perform well, they could possibly leave for another pharmacy. Please help. My email is [email protected]
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All right Z...I need some advice on 340B.
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Great. let us know how it's going
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You got mail
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Where? Snail mail via pony express?
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I rule the internet!
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All of our clinic pharmacies are 340b, it allows us to keep the doors open and helps to cover my position as an ambcare pharmacist in the clinic.
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Slight correction. Pharmacy itself cannot be a 340B entity. They service 340B covered entities (even if the pharmacy is owned by the entity) patients with qualifying prescriptions. The downside of covered entities owning their own pharmacy is that PBMs will slash reimbursement to 340B CE owned pharmacies. Get around this by having the pharmacy managed by a separate entity.
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You're in a ripe position to provide high quality transitional care. The most advanced yet profound transitional care trial is going on in Virginia. iHARP. It's CMS funded. Not published yet...but I've seen the data. The first presentation will be in Chicago this Aug... may be a platform presentation soon at ASHP and APHA.
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Thank you for the information, I look forward to seeing the presentation. I strongly believe in the transitional work we are doing and always enjoy hearing what other s are doing and looking for ways to improve the system. All of our patients are Medicaid/Medicare/Uninsured, we operate within a FQHC.
