How To Value A Pharmacy Business – Many pharmacy owners do not realize that they do not own the digital assets of their pharmacy business. Treating digital assets like brick-and-mortar assets unlocks your pharmacy’s growth potential.
As with any asset, the value of a digital asset comes down to two main factors. Both the labor required to create it (what it is), as well as the value it produces (what it does).
How To Value A Pharmacy Business
One aspect of this value is the investment of time and expertise required to create a website that can attract attention and drive the business it creates. Let’s say, for argument’s sake, that it cost the company £50,000 to create this website.
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This number is limited. The website has a lot of money to buy. In the long run, the money you invest will reduce the return on your website. When it comes to selling Pharmacy2U, if the website is not yet available, there is a lot of potential value, but only £50,000 to pay. So it counts when calculating the value of a company. But it never adds up. This is only important if you are investing in assets, but not renting software as a service (SaaS). But here we come to another aspect of value.
The second value has a higher potential. And that number is the amount of business done to and through the website. This value includes the fact that almost everywhere in the UK the website appears in position 3 on Google for ‘online pharmacy’.
It is difficult to calculate all the costs. But even with 500,000 items the website helps, the Pharmacy2U website could be worth £1,000,000.
Get an email marketing list. Having a list of email addresses is a potential value. But the potential is there, and then there is the real value. The real value is in the reports that show you have consistently achieved high levels of engagement and sales through your marketing lists.
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The same argument about actual versus potential value applies to many cheap drugstore websites. There is so much promise, so much potential. Many software-as-a-service options have the ability to sell products online. But the truth is, the web design is outdated, the user experience is shocking, and there’s no way people will choose to buy there over other alternatives on the internet.
It’s like a car without an engine and a steering wheel that doesn’t move. Many people get a pharmacy business website just because they heard they should have one. But just having a website does nothing. It’s like having a car without an engine. Sure, you can say you have a car…but what’s the point? If a website doesn’t work the way a website should… why are you paying for it?
Understanding what separates a good website from a bad one is key to understanding why you should pay more.
If you rent a van to deliver to a restaurant, you cannot include the van as part of the sale if you are selling the restaurant.
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Paying for Netflix doesn’t mean you get 1,000 movies. You have access to 1000 movies in the collection. If Netflix shuts it down or decides to change its pricing or many of the things it does as a business, you’re going to be in trouble.
The software you pay for by subscription is not yours. Once you stop paying, the ability to use and data will be lost. You should be very careful with any pharmacy business that relies heavily on third parties. Be the master of your destiny.
If you sell a pharmacy or plan to one day, understanding the concept is an important way to increase the value of your business quickly. Bad companies don’t charge high prices. Going back to the house analogy for a second, if a house takes a lot of work, it doesn’t pay off.
When you buy a business, you want to know how the business works so that it can continue to be successful. The reality is that without digital assets, pharmacies will struggle to demonstrate new business potential. They can rely on knowledge, relationships or networks that are lost with them.
Future Of Pharmacists
A strong digital ecosystem is one of the most reliable ways to demonstrate future value to potential buyers. And that is what sets you apart from many other pharmaceutical businesses today. That means you can raise your asking price.
Have more questions about how to add value to your pharmacy with digital assets? You can contact us on our Pharmacy Mentor Contact page or log in to chat with our team using the Calendly booking calendar.
Was this article helpful? You can also join our mailing list where we regularly share insights, tips and articles from our blog. You will also receive a FREE e-book “Mastering Digital Pharmacy” written by Saam Ali, CEO of Pharmacy Mentor. PMC Pharmacy, a leading medication management company serving Pennsylvania, New Jersey and Delaware, supplies medications to long-term care clients. facilities, group homes, hospice organizations, etc. Pharmacy management sought the help of ERA healthcare professionals after the current supplier tightened pharmacy order limits for some drugs, reducing volumes by a third.
ERA specialists are tasked with finding new drug wholesalers with less restrictive conditions, lower costs and greater transparency.
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When reviewing proposals from new and existing suppliers, ERA benchmarks and identifies significant improvements that can be achieved through new suppliers, including increased transparency, lower prices and volume discount structures.
Thanks to the new savings, PMC Pharmacy executives report the recovery of lost income and the opportunity to continue growing their business.
Our case study examines how leading pharmacies partnered with ERA to reduce wholesale prescription drug costs.
“ERA’s team of industry-specific specialists is second to none and provides a unique analysis team that is easy to understand, while providing a clear path to achieve our goals. Professionalism and continuous follow-up with vendors during the negotiation process. BRIAN DUNLEAVY, PMC PRESIDENT PHARMACYBefore the pandemic, the industry retail pharmacy is experiencing major disruptions. in strategic alliances between large payers and pharmacy benefit managers, and the introduction of many new technologies, to name just a few important trends and others. brought into the new.
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By understanding how the market is changing, retail pharmacies know the best way to switch to stay viable and competitive for years to come. To help you make better decisions about the future of pharmacy, here are some thoughts on the many opportunities and challenges today, followed by an update on the value of retail pharmacy.
Mobile Apps – It has never been easier or cheaper for retail pharmacies to offer and use mobile apps. Not only does the app make it easy for customers to fill prescriptions, receive refill reminders, and take advantage of discounts, but giving customers an app can increase loyalty and satisfaction.
Mail Order – Before the pandemic, the number of mail order prescriptions has decreased. COVID-19 has changed this trend. Some consumers who used mail order delivery for the first time or relied during the pandemic returned to fill their prescriptions in person. However, some consumers who value the convenience and potential benefits of mail order tend to opt for standard shipping methods. Offering mail-order recipes can help attract and retain these consumers, and should prove attractive to potential new customers, including many who work from home.
Telehealth/Telepharmacy – It’s safe to say that telehealth isn’t just here, it’s here. From December 2019 to December 2020, there was an increase of more than 2,800% (not a typo), according to FAIR Health’s monthly telehealth regional tracker. Retail pharmacies that use telehealth and telepharmacy effectively can improve their business. As telepharmacy delivery rules and regulations (including coverage) evolve and vary from state to state, increasing telepharmacy services will help pharmacies reach new patients and more. It’s great to support existing patients while improving patient care.
The Digitally Driven Pharmacy Part Ii
Digital Pharmacy – For retail pharmacies looking to make more dramatic improvements, one option is to look for a digital pharmacy. Although there is no clear consensus on how to define “digital pharmacy”, let’s clarify in this case.
