High competition in the pharmacy business does not always make the implementation of a pharmacy business idea profitable for start-up entrepreneurs. To avoid mistakes when opening a pharmacy, you need to conduct marketing research and make preliminary profitability calculations.
When conducting a marketing research of a pharmacy, it is necessary, first of all, to assess the level of competition in the local market.
To do this, it is necessary to map the points of sale of medicines, and then sequentially bypass them all, identifying the range of sales, the form of the point of sale, as well as belonging to a particular pharmacy chain.
It makes no sense to open a pharmacy in an area saturated with other points of sale. In addition, it is often difficult for start-up entrepreneurs to compete with large pharmacy chains, both in terms of the range of medicines and the level of staff qualifications.
The professional level of the staff plays a key role in the success of the pharmacy business idea.
After all, a highly qualified pharmacist is able not only to make a medicine according to a doctor’s prescription, but also to offer a replacement for the medicine in case of its absence, and also give recommendations based on indications for a particular client. This increases the level of trust in the pharmacy as a whole.
The results of marketing research should provide enough information to make a decision about the shape of the future point of sale.
Sometimes it is more profitable to purchase a franchise or enter into large pharmacy chains than to spend money on advertising and promotion of your own pharmacy.
According to the results of marketing research, you can look for a place for a future point of sale of medicines.
For example, for a pharmacy store, it makes sense to purchase or rent a room with a large trading floor for open access of customers to the product.
A pharmacy kiosk can generally be located in a very small space, since it mainly sells hygiene items, herbs, dietary supplements and popular over-the-counter drugs.
Higher requirements are imposed on the premises of a pharmacy and a drugstore, since prescription drugs are manufactured in them.
Naturally, the premises of the pharmacy, in order to ensure sufficient sales volumes, should be located on fairly busy streets or near highways.
The turnover of the point of sale and, consequently, the profitability of the business will depend on the number of buyers.
The premises of the pharmacy must comply with the requirements of the law. It must be equipped with ventilation, electricity, water supply, reliable alarm, centralized monitoring.
For the storage and manufacture of medicines, specialized medical equipment, furniture, refrigerators, and safes are needed.
The initial costs of implementing a pharmacy business idea will consist of the costs of acquiring, repairing and equipping premises, obtaining all necessary permits and licenses, purchasing special and medical equipment, furniture, commercial equipment, and software.
The start-up cost calculation should also include the cost of purchasing the initial range of drugs and related products, as well as the initial advertising campaign.
The current costs of the pharmacy will consist of staff salaries, the cost of renting premises and utilities, maintenance, and security.
We should also not forget about the need to have enough working capital to replenish stocks of medicines and other goods.
Experience shows that opening a pharmacy, associated with the need to obtain permits and licenses, takes quite a long time, during which you have to bear the costs without receiving income.
The cost of opening a pharmacy or pharmacy can range from several tens to several hundred thousand dollars.
Naturally, opening a small pharmacy kiosk or drug store is much cheaper. The income of one point of sale, depending on its location, can be several tens of thousands of dollars per month, but the profitability of the point of sale, as a rule, does not exceed several thousand dollars per month.
Therefore, the payback of a pharmacy business idea largely depends on the quality of the marketing research conducted, as well as on the form of its implementation.
On our site you can make a preliminary assessment of the profitability of a future enterprise using the original calculator.
You can also order accurate calculations, a ready-made business plan for specific conditions on our website.