Monday, August 26, 2019

Pick-to-Light Will Call System Pays For Itself With Improved Cash Flow




I met Mark Vogler, R.Ph. in the spring of 2016 as part of one of my many pharmacy road trips.  I was impressed with what a passionate clinician and astute businessman he was back then.  I just got of the phone with him, and am even more impressed as he shared with me why he had invested in a pick-to-light will-call management system. 


Vogler is the owner of Martin-Tipton Pharmacy in Amarillo, TX.  It is a high-volume pharmacy, doing about twice as many prescriptions per day as the national average.  Much of this is due to Vogler being the type of guy who goes out and looks for better ways to meet the medication needs of his community.  In addition to traditional dispensing the pharmacy works with mental health clinics, assisted living facilities and provides medication services to an AIDS support group. 

But what brought us together was a conversation on why he had recently invested thousands of dollars in the scripClip LED supported will-call system.  Here is his short answer, “I was tired of looking unprofessional when patients came in for their scripts and we couldn’t immediately find them.” 

And here is what blew me away.  I asked how often that happened and he said, about 2 or 3 times a week.  That number jumped out at me as being low compared to other pharmacies I have interviewed on behalf of PerceptiMed, the company that developed scripClip.  I had done a survey for the company a couple months earlier and spoke with pharmacists who told me they had trouble finding scripts “a couple times a day” and didn’t seem to think it was anything to worry about. 

It got a bit more interesting when he talked about being in an ethnically diverse part of town and the complications that come from hard to pronounce and spell names.  He told me how his staff works hard to place filled scrips in alphabetical order but that just doesn’t always seem to work.  Now he says, with the pick-to-light system they simply put filled prescriptions on the will-call rack randomly. Then they retrieve them by asking patients for their birthdate and entering that into the POS.  The result, the right bag lights up and is retrieved quickly. 

Vogler says the system works exceptionally well, and he is pleased with the fact that it does exactly what he expected when he purchased it.  But then he adds, since installing the system he has found that it pays for itself in an unanticipated way. 

Vogler says the process of identify the precise bag for a person who has not picked up a filled script is much easier with scripClip.  Vogler says that by asking the system to “light-up” scripts filled but not picked up after 5 days his staff can simply walk the will-call area and retrieve those scripts.  Then they call – yes, they make a personal phone call – to those people, find out what the issue is and encourage them to come get their medicine.  

He says the personal call, done by staff members with access to a patient’s full profile helps him provide exceptional customer service.  Then he says, they repeat the process at 10 days and return items to stock and reverse third-party claims.  Being able to perform both tasks so quickly has helped reduce abandoned scrips and improve inventory turns and cash-flow.  He says scripClip has allowed him to reduce the number of bags in his will-call bin from 400 to 300.  These two metrics alone, he says, more than justify the cost of the system. 

Finally, he says, “The flashing lights just look nice.” 

Friday, August 2, 2019

The Pharmacy Marketing Mandate


Most independent community pharmacies retain the services of a lawyer and accountant.  The reason, legal and accounting functions are important, complicated and most pharmacists do not have the skill, nor the time, to perform these critical tasks.

With so many pharmacies adding new services such as; immunizations, medication synchronization, convenience packaging, etc. I’d argue the time has come for pharmacy owners to add a marketing professional to the list of needed experts.

The reason, most consumers do not understand the need for these new services.  And, some of the ways I have seen independent pharmacy owners try to promote them is counterproductive.  For example, I see web sites that say the pharmacy does compounding, MTM, or drug nutrient depletion.  How is a consumer supposed to know what those words or acronyms mean, never mind wanting them bad enough to pay for them? 

As a pharmacist you have spent countless hours in formal training to make sure you understand the chemical composition of medications, how the body absorbs them and what other medication can do to disrupt their positive effects.  You have been schooled in the technical aspects of dispensing.  You understand the critical importance of doing things right, every time.  That is a powerful and valuable skill which I am glad you have.   

As a pharmacy owner or manager, you are faced with two marketing problems; first you need to carefully determine what new services you can profitably provide.  Second, once you decide on that you need to find cost-effective ways to build demand for these new services.  

Wholesalers, buying groups, technology providers have been urging you to make changes to your practice for years.  Phrases like, “practice at the top of your licenses,” are commonly repeated.  That is good advice but it overlooks the most important practice challenge.  Most pharmacists do not know how, nor do they want to become sales people.    

So, what’s the answer?  Well, at least one path to success is for your pharmacy to hire, or retain, a marketing professional.  This pattern for success was carefully crafted years ago by The Professional Compounding Centers of America (PCCA).  One key to success in compounding is having someone call on doctors and explain the benefits of compounded medications.  Likewise, you need to build demand for the new services you hope to profitably provide.    

Doing this requires time and the ability to persuade.  The good news is that if you don’t have the time or the ability to sell, you can buy it. Yes, it costs money, money that is hard to come by with reduced reimbursement, claw backs and egregious audit practices.  But, the solution to most of these third-party caused profit problems is adding these new services to your practice, and charging for them!  If done properly you can find ways to make these changes and see them paying for themselves in a relatively short period of time. 

That is why I call this essay, the Marketing Mandate. For most pharmacy owners doing this on your own is just not an option.  And for those that have the ability to do "marketing" I wonder if you will ever really get around to it.   

Most wholesalers and buying groups have well developed programs for providing these kinds of services.  But for those who choose not to use  these partners, for any number of reasons, I am aware of a few companies that specialize in independent community pharmacy marketing.  If you'd like a recommendation just let me know.  

And, I'd know you what you think, on marketing, or any other retail pharmacy topic. 
            Complaints, kudos, questions; you can reach me at:  BFKneeland@gmail.com