Are You Missing A Huge Free Marketing Opportunity?

A couple back-to-back major national news stories have caused me to reflect on a HUGE competitive advantage independent community pharmacies have.  The approval of the FDA for an OTC birth control pill and news on a new Alzheimer drug are the two examples.  I'll bet you've heard these stories too. 

When a big story like this hits the news-wire the national media covers it pretty well.  But here's the problem your local news outlets have, they don't want to simply run the same story as everyone else. So, what do the do?  Often they will contact a local expert and try to build a story around what the expert says along with some thought as to what it mean for people in your city.  

Their problem, the pharmacy manager at the chain drug store can't talk to the press. But you can.  And with a little bit of preparation and some luck, you can be the local media guru for this type of news.  

Arun Tandon, President of Advance Health Pharmacy in Kalamazoo, Michigan, has worked with the local press for years.  He just got to be featured on a local TV broadcast on the new birth control pill.  Here's a link to the story: https://lnkd.in/g9_QznfA

Hussam Hamoush, owner of Stonebriar Pharmacy in Frisco, Texas is also routinely featured on a local Dallas TV station.  

Both of them tell me the process couldn't be easier and, that the free publicity does bring in new patients, in two remarkable ways.  First, the obvious, people see the news story you are mentioned in.  They see the sign for your pharmacy.  They are unhappy with their current pharmacy so they drop in and give you a try.  But, the more important business builder is, your current customers see the news story,  Then they say to their friends, "Hey the locally owned pharmacy I just saw on the news is where I shop.  They are really good.  You might want to give them a try."  

That's right, being on the local news is a word-of-mouth catalyst.  

Getting started is easy.  Next time you  hear a story that has anything to do with pharmacy send an email to one or more local news outlets.  You should be able to find a contact person easily on the web.  Then write a short and sweet email.  Something like this:

Dear Editor, I just heard a news story on (fill in the blank).  I found it interesting but, it seems important to me that people understand a couple things about the (product/service) that weren't mentioned.  For example, (pick one) the cost, how hard it is to get, why insurance may not cover it, etc. etc.  As the owner of, Your Pharmacy Name, I'd be happy to talk with one of your reporters and answer a few questions.  It may help your readers/listeners have a better understanding of the topic.  

That's it.  Most likely the first two or three times you do this nothing will come of it.  But if you send out an email like this to several outlets, several times, after a few tries you'll get a call.  

Tandon and Hamoush tell me they get on the news several times a year; and, they no longer need to reach out.  The calls just come.  

I wrote an article on this process for America's Pharmacist magazine a couple years ago.  Email me at: BFKneeland@gmail.com and I'll send you a pdf.  Subject line: Be The Local Media Guru.

   

Sunrise or Sunset?

I took this picture last fall.  Because you don't know when and where it was taken you can't tell if this is a sunset or a sunrise. 

I have been involved in selling to, working for and writing about independent community pharmacy for nearly 50 years.  When I started the chains were just beginning to emerge as market leaders.  Their challenge was tying to catch up with Rexall, the retail drug store powerhouse with 10,000 retail franchisees.

The chains came on fast and took a huge chunk of the marketplace.  But well run independents that invested in technology and found ways to better serve their customers held on pretty well.  At the turn of this century the power was grabbed by the PBM's and the results have been devastating to independent pharmacy.  So much so that many say the sun is setting on the industry and profession.  

But, hold on a minute.  The classic cliché is that when one door closes another door opens.  From my perspective, the future of independent pharmacy is bright; or, using the picture, I'd say the sun is rising! It is a new day.  Owners are finding ways to take on new roles, provide new products and services and plug into their community to profitably fill gaps in healthcare.    

The door that is opening is being built upon a foundation of service and trust; and, I must add, upon dispensing.  But, understand, dispensing is the starting point, not the end all.  The real opportunity is in providing healthcare services.  

I get to visit a lot of pharmacies.  By definition, half of them are below average.  But the top 25% are forging a path to profit by expanding their vision of their profession.  That new vision includes being a healthcare professional with an expertise in medications.  

Let's face it, medications play a critical role.  What would a doctor do without antibiotics, blood pressure meds or any other of the thousands of products a great community pharmacy stocks.  Yet, medications don't work if people don't take them.  But, as you know, pharmacy can no longer survive on third party reimbursement.  

Immunizations, drug nutrient depletions, diabetes education, hypertension monitoring, lipid management are the starting point.  That leads to point-of-care testing, pharmacogenetics, birth control prescribing and a myriad of other services that in many cases are paid for in cash by the consumer. 

In my opinion too many pharmacy owners have surrendered to the notion that if insurance doesn't pay then people won't either.  That is a false narrative that is driving many pharmacies to sell their files and walk away.  I agree that if insurance doesn't pay many people won't pay.  Indeed, I'd even agree that most people won't pay.  But, I do argue that some people will.  

The, some people, brings me back to the point mentioned earlier.  That being, growing into healthcare services can best be built on the foundation of dispensing.  As an example., assume 10% of your patients will spend $25 for a product to address a drug nutrient depletion.  If you have 2000 patients that means 200 people with pay.  If you have 1000, you'll only get a 100.  

Thus I argue, pharmacy needs to aggressively hang onto their role as the medication experts.  Then they need to find ways to add on many more of these other services mentioned above.  In doing so it is critical they first believe "some people" will pay for "some" things.  Then, the hard part is figuring out just what new product, program or service they can provide that will prove successful.   

Here's hoping something you have read here will help you do more and be better.  

After reading his own obituary, Mark Twain reportedly told a reporter, "The report of my death has been greatly exaggerated."  The same can be said for independent community pharmacy.  It is far from dead.  If you look around carefully you'll see many pharmacies are making changes to their business model and doing quite well.  

One of the keys to their success appears to be they don't whine and complain.  They realize pharmacy is a health care profession.  Thus, as healthcare providers they realize they can provide services beyond dispensing.  In the last few months I have interviewed pharmacy owners that are:

1. Working with a company that coordinates care for insurance companies.  They train and certify  pharmacists.  The pharmacy then helps hypertension patients control their blood pressure.   The pharmacy gets paid, through the medical billing system, $150 for a 30 minute appointment based session and each patients gets multiple sessions.  

2. Coordinating with the State Health Department one pharmacy is working with elementary schools in the neighborhood to provide pediatric immunizations.  The shots are done at the school.  The program provides a decent margin and truly benefits the less fortunate students who get their shots.    

3. One owner has, over several years of hard work, progressed to the point where physicians refer specific patients to the pharmacy for a complete nutritional review.  The patient pays, out of pocket, for an appointment based evaluation and then purchases high-grade nutraceuticals from the pharmacy.  SOAP notes are taken and a written treatment plans are provided to the referring physician.  

4. Then there is compounding.  Pet meds, pediatric dosing and hormone replacement seem to be the most common.  Owners tell me once a few doctors in the area begin to understand the value of customized medications that compounding can be professionally rewarding, and profitable.

5. One owner I spoke with is working with a grant program and has hired a community health worker.  This person makes home visits and helps patients organize all their health care appointments, facilitates medication compliance and helps people overcome other barriers to good health.  

I called on my first pharmacy 50 years ago as a "detail man" for Pfizer Pharmaceuticals.  As a brand new salesman I was amazed at how many pharmacy owners felt the profession was doomed.  The BIG fear, chains!!! 

Fifty years later, I say, "The reports of the demise of independent community pharmacy are greatly exaggerated."  Savvy pharmacy owners are doing new things and are finding success.  

                 Here's hoping something I said here will help you do more and be better.  

What's A Paradigm; and, Why $hould You Care?

I graduated from Brigham Young University in 1973.  In my senior year I took a business class from a popular but not yet well known professor, Stephen Covey.  It wasn’t until 1989 that he’d publish the book that turned him into a business icon, The 7 Habits of Highly Effective People.

Covey starts his book with the concept of a Paradigm.  The word indicates we all have a “frame of reference” we use to interpret life’s events.  The problem is, as circumstances change, it is easy to be trapped in a mind-set and that makes it difficult to adapt.

Independent community pharmacy suffers from an old, out of date paradigm.  When we think of successful pharmacies too many of us think of a pharmacy that fills a lot of prescriptions.  We don’t typically envision a pharmacy that does other things that help to improve the lives of patients. 

Change is happening fast.  Some changes are terrible, but some are really exciting.  The successful pharmacy of tomorrow will provide a variety of healthcare services.  It may help if you see yourself as a healthcare provider with an expertise in medication. 

The good news is that the kinds of services you can provide are being done by pharmacy owners right now!  Just in the past few weeks I have spoken with a handful of owners who are providing non-dispensing services, and getting paid.  Some by insurance companies, some from grants and others by consumers.  Yes, people will pay cash. Not all, or most, or even many, but some.  Just think what would happen if 10% of your patients paid you for some other healthcare product or service you provide.  

One of the most destructive paradigms that has crept into pharmacy is that if insurance doesn’t cover the cost, people won’t pay.  I visited Flower Mound Pharmacy in Texas.  The owner charges people for nutritional supplement consultations.  People with chronic conditions book an appointment, pay a fee, get an evaluation, a formal written report, recommendations and a care plan.  Then, they go out front and buy the supplements recommended.  And to top it off, they get results, feel better, and suggest that their friends do the same. 

I recently did a podcast with a pharmacy owner in Washington state.  He tells how a technology company, AssureCare, is providing him with the tools he needs to provide a profitable patient care service.  The pharmacy provides a convenient and clinically appropriate place for patients to come, by appointment, for a series of 30-minute encounters. The one he mentions is hypertension but there are others. He, and his credentialed staff help patients understand the seriousness of their condition, teach them how to properly take their blood pressure at home, and set up a care plan that helps them improve their diet, exercise and life style.  Via the vendor’s web portal this is all documented, billed and paid for by a combination of insurance coverage and patient co-pays.  Just like if it was done in a physician’s office.

Good things are happening.  Patients, prescribers, and payers need what community pharmacies can provide.  Here’s hoping you are exploring, and willing to try some new things.  It is still possible to run a profitable pharmacy.  I know because I get to visit them all the time. 

A Spectacular Front-end Gets New Pharmacy Off To A Great Start

I've spent decades working with independent pharmacies, and I know that running a profitable business while also providing excellent patient care is a constant challenge. That's why I want to share a story with you about how MatchSquare helped one independent pharmacy owner transform her front-end into a profitable space that aligns with her patient care philosophy.

Karen Hennesey is the proud owner of Wadhams Corner Pharmacy in Kimball, Michigan. When she was planning her pharmacy, she knew she wanted to create a spectacular front-end space that not only generated revenue but also helped her attract new customers. However, finding the right products and managing her front-end was a challenge, especially since she couldn't find anyone to manage it.

That's when she saw a social media post for MatchSquare, a new company that had created a front-end marketplace specifically for independent pharmacies. The ad boasted that they had sourced thousands of health, wellness, and lifestyle products that were carefully selected by merchandising professionals specifically for independent pharmacies. She contacted them and was introduced to a Personal Shopper who was beyond helpful.

With MatchSquare's help, Karen was able to turn her front-end into an even better space than she had hoped. The products are unique, attractively packaged, and sold at prices that appeal to her customers while generating attractive margins. Plus, her MatchSquare Personal Shopper eliminated the need for a front-end focused employee, saving her time and money. Together, they found ways to source products that convey the patient care philosophy that drove her to open her own pharmacy.

What I love about MatchSquare is that they understand the unique challenges of independent pharmacies and have created a program specifically for us. They have sourced unique and trendy brands that you won't find in your primary wholesaler's catalog, and their Personal Shoppers are experts at helping you find the products that align with your patient care philosophy.

Don't let your front-end be a missed opportunity for your independent pharmacy. Sign up for MatchSquare today and see the difference for yourself. Visit their website at www.matchsquare.com to learn more, and don't forget to ask about their "try-and-buy" sample box.

Take action today and see how MatchSquare can help you transform your front-end and grow your business. You won't regret it.

If You Want To Speed Up, Slow Down

Several years ago I was part of a sales team for a large technology firm.   The company, with sales approaching a billion dollars, had a dominate position in the independent hardware store and auto parts business and was eager to sell their products to independent pharmacies. 

One of the opportunities this job provided was participating in a year-long sales revamping process undertaken by a large consulting firm.

What’s this got to do with you?

During the process I learned something that will help anyone trying to manage an independent community pharmacy. The consultants came back with a whole new sales process built on the notion; if you want to speed up the sales cycle, then you need to slow down and plan more carefully.     

For some reason, the juxtaposition of the phrase, slow down to speed up, impressed me.  And, I think the idea has value for independent pharmacy owners. 

Here’s why.  If you want to grow your pharmacies sales professionally and profitably then you need to pause, take a step back and rethink what you do.  Most pharmacies are built on the idea that to be successful they need to fill more prescriptions.  While filling lots of prescriptions is helpful, it is no longer the key to success.  Low reimbursement, more expensive inventory and labor issues mean you need to do more and be better than ever before.  And, if you want to do more and be better you need to pause, ponder, plan and prepare.  That all requires time away from the pharmacy, it requires networking with others and brainstorming with you team.  In short, if you want to make more money, you need to find new, more and better ways to operate. 

The good news is other pharmacy owners have already found many of these new ways.  Some have decided to do more compounding.  Others to focus on non-pharmaceutical treatments, others have successfully adopted a cash-only model. I have a fondness for those updating the look of their pharmacy and re-invigorating the front-end.  Health services, like smoking cessation or diabetes education are common.   And of course, the most rapidly emerging areas for growth seems to be immunization.  With point-of-care, “test-to-treat,” coming in a close second. 

But, the number of choices is the problem. If you try to do too many you are likely to fail.  If you try to adopt programs you don’t have a passion for, or for which your market place is not ready, or that someone else is already doing, you are not likely to succeed.    

Which brings me back to the starting point.  If you want to speed up, slow down.  Take time to examine your strengths, understand your passions and evaluate your trade area.  Then carefully choose one or two programs and get started. 

It is possible to run a profitable community pharmacy.  Its not easy, but it is possible.  I know, because I get to see them when I travel.  The one thing that is true for each of them, they are doing something else besides filling prescriptions fast and accurately. 

Here’s hoping something you read here will help you do more and be better.