Setting margins.
WHAT CONSTRAINS PRICING
Competition from other pharmacies and informal sellers Patient price sensitivity Regulated or conventional pricing on some items
WHAT TO ESTABLISH
Your margin by category.
WHAT TYPICALLY DIFFERS
Prescription medicines Over-the-counter products Personal care and retail lines
WHY MARGIN VARIES
Competition and comparability differ by category.
WHAT ITEMS CUSTOMERS COMPARE
Well-known brands they buy repeatedly.
WHAT THAT MEANS
Visible over-pricing on those damages perception across everything.
WHAT TO DO
Price those competitively, and earn margin elsewhere.
WHAT TO ENSURE
That the overall mix produces the margin you require.
WHAT TO CALCULATE
Whether the margin covers your costs at your volume.
WHAT TO INCLUDE IN COSTS
Staff, including the pharmacist Premises Power, including refrigeration Expiry write-offs Licensing
WHY EXPIRY BELONGS IN COSTS
It is a predictable, recurring loss and pricing must absorb it.
WHAT TO DO ABOUT SUPPLIER PRICE CHANGES
Review selling prices promptly.
WHY
Absorbed increases erode margin invisibly.
WHAT TO ENSURE
That displayed and system prices match.
WHAT TO AVOID
Competing on price against informal sellers.
WHY
They do not carry your costs or obligations, and matching them is unsustainable.
WHAT TO COMPETE ON
Availability, correctness and advice.
