The Pharmacy Post
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Recession Proof Your Pharmacy
A recession has been looming over the United States for a while now, and while experts may quibble over how severe it will be or if we are already in a recession, your pharmacy needs to be prepared regardless. With economic uncertainty, it can be difficult to predict what you will need, but there are several things you can do to help bolster your business and keep above water during lean times.
Build A Nest Egg For Lean Times
The most important and challenging thing is to have a nest egg of 3-6 months of expenses set aside for when business may decline. While this may not be an option for everyone, now is an excellent time to siphon as much as you can save to cover operations should your revenue drop.
Expand Your Services To Increase Customer Base
There are other things you do besides saving money, though. While it may seem counterintuitive to invest in expanded services in the face of a recession, additional services that increase your customer base and build stronger customer relationships will pay dividends when business slows. One great example is adding a delivery service to your pharmacy. Not only does this help expand your reach to immobile customers or ones without reliable transportation, but you can also set minimum delivery orders to encourage customers to buy more.
Cultivate Stronger Customer Relationships
The relationships you cultivate can also help keep you afloat during leaner times. If you’re not already, servicing LTCs can help provide a reliable and lucrative market for your pharmacy. We wrote a blog article going into more depth that you can read here. Suppose you’d like to take on the LTC business. In that case, you can help ingratiate yourself to the facilities with free consultations, drug disposals, vaccine clinics, or even by bringing treats to residents. Developing these relationships can pay off significantly for your business, especially during tough economic times. This way can help you recession-proof your pharmacy.
Cut Costs To Keep Your Pharmacy Running Lean
The last thing to mention for keeping afloat during a biotech recession is cutting costs. When the economy slows down, it might be time to reassess your employees and eliminate unproductive or underperforming ones to keep your pharmacy running lean. The other way to control costs is to have a reliable secondary wholesaler who can offer massive discounts over the prices offered by your primary. Masters, for instance, has a catalog of over 10,000 products priced to protect your profits. If you’re not already buying as many products as your PVA allows, now is a good time to talk to a knowledgeable account manager about where they can save you the most money.