Ways you can expand your pharmacy business
Covid-19 was an opportunity to expand and capitalize on your pharmacy business. One of the biggest challenges many companies face is finding suitable wholesale pharmacy suppliers.
As distributors handle 93% of pharmaceutical sales, finding one can be overwhelming for your business. Wholesalers are an essential bridge that links manufacturers, pharmacies, hospitals, and other pharmaceutical institutions.
The article dives into ways you can expand your business and find the right wholesaler for your business.
How can you expand your pharmacy business?
People are prioritizing health like never before. After the pandemic, the pharmacy sector is growing massively. Considering the increase in demand, it is a wise choice to expand your pharmacy business to boost sales.
Here are a few tips to follow if you are thinking about expanding your business:
- Cross Selling and Upselling: Cross-selling and up-selling have become the golden rule for boosting sales in the past few years.
Customers should be made aware to buy complementary products. Training employees can do this. For instance, if someone is looking for cough syrup, staff can also suggest pills for the flu.
This method results in higher sales with more customer satisfaction.
- Market research: Identify the medicines whose demand is increasing. Reviewing sales trends will help you understand customer needs.
Market the products for better sales. You can also choose to sell your product digitally for a broader reach.
- Better relationships: Investing in staff for better performance is never a dull idea. The team should be able to connect with customers to build a loyal customer base.
A person may not turn up next time if the employee talks rudely and in an unappreciated manner. It is thus essential to create an environment of trust and kindness.
- Stock wisely: The product placements matter a lot when in your store. Customers buy more if they can with ease locate the products in the store.
For instance, you can keep related products together. There should be sufficient stock in the store for a better store layout.
Types of distributors
If you are expanding or even starting a new business, it is vital to know about the distributors and wholesalers in the pharmacy sector. For better distribution through different channels, companies assign wholesalers and distributors.
Here are different types of wholesalers you should know:
- Producer distributor/wholesaler: This type is primarily found in commercial locations and gives offers and discounts at a specific location. These are assigned when manufacturers want control over appearance.
Customers under this type may be few, but each customer is significant in terms of record.
- Merchant distributor/Wholesaler: This type assists until the product has reached the customer. They offer marketing and advancement assistance, manage individual deals, research, and deliver information to customers and administrators after sales and installation.
- Agents and Brokers: These work on selling essential goods in numerous sectors. They work in specific domains and offer non-focused and essential items in these domains.
How do you identify the right wholesaler?
Wholesalers play a crucial role in the pharmacy industry. They look after products and ship them from manufacturers to pharmacies.
It is thus imperative to consider a few following points before appointing one for your business:
- License: There are laws for wholesalers, so they don’t indulge in criminal activity. A wholesaler has to maintain a rigorous and consistent standard for getting a state license for distribution.
Prescription drugs under the law can be purchased from wholesalers who are licensed. So ensure your wholesaler or distributor holds a license.
- VAWD seal: The Verified Accredited Wholesale Distributors (VAWD) program was developed in 2004 to protect the public from any threat.
Every distributor needs to go through VAWD accreditations.
- Laws and regulations: Every distributor must be aware of the governing statutes and regulations relating to the pharmacy industry. The Drug Supply Chain Security Act (DSCSA) requires pharmacies to do transactions relating to distribution with only authorized trading partners. The law defines these trusted trading partners.
Not finding suitable wholesale pharmacy suppliers can be a roadblock for your business. You must find a distributor who is familiar with your company and aligns with your business goals.
Ensure they are fully aware of laws and own licenses under the law. A wholesaler with the same interest will offer a great customer experience.