6 Ways to Prepare Your Pharmacy for a Recession
Posted on Sep 06, 2022
Economists have been talking about the dreaded “r” word – recession, as the likelihood of entering a recession continues to grow. Whether your pharmacy is established and stable, or just opened its doors, it’s essential that you prepare for further economic slowdown. This way, you can keep your business strong – no matter what the future holds. Here are six ways to prepare your pharmacy for a recession.
1. Assess (and increase) your savings.
While the events over the last few years have probably impacted your profitability, it’s important to continue to save whenever you can. Three to six months of funding is typically recommended however, anything is better than nothing! Start by reviewing your pharmacy’s financials and set a savings goal. That way, you’ll be better positioned to bounce back from a recession.
2. Reduce your expenses where you can.
This may be easier said than done, thanks to supply chain shortages and inflation. Some things you can’t control, but evaluating all your operating costs can help you identify areas you can scale back. For example, you can reevaluate your ordering habits. This includes, finding ways to reduce shipping costs and the amount of on-hand inventory you maintain moving forward. Plus, with EDI, you can easily manage your pharmacy’s inventory and pricing updates using electronic files sent directly from your suppliers.
3. Monitor your cash flow.
When business dips, it’s important to stay on top of pending insurance claims and outstanding patient payment amounts. You can offer discounts for prompt payments, request deposits for certain products/services and negotiate better terms for vendor payments to increase your cash flow. Plus, BestRx offers several tools that can help you reduce claim errors, processing delays and restocking fees
4. Obtain financing now.
If you need to obtain financing, whether it’s for new equipment or enhancements to your store, now is the time to do it. If you wait, not only are your financials likely to have dipped, but you’ll probably end up with a higher interest rate as well. With continued supply chain delays and shortages, it’s important to plan for and purchase any equipment (including computers and printers) further in advance too. To help our customers obtain financing, we’ve partnered with BNC Finance. You can apply for financing for whatever your pharmacy needs, using a quick online application.
5. Enhance your customer experience.
Your customers directly impact your company’s profits. Make sure you’re doing everything you can to encourage repeat business and build strong relationships with your customers. Whether it’s offering loyalty rewards or added conveniences like text alerts, mobile payment options and deliveries, providing exceptional customer service will help you retain business – even in a slow economy.
6. Continue marketing.
Often, marketing budgets are one of the first things cut by small business owners. While it may seem like an easy “non-essential” way to reduce your operating expenses, ramping up your marketing can actually help you through a recession. Continue to leverage your website and social media pages, so customers know you’re open to support their pharmacy needs. Don’t have a website? We’ve partnered with Dr. Leonardo + PharmSites to provide independent pharmacies with an easy, affordable way to get online.
Preparing your pharmacy for a recession now will ensure you’re best positioned to navigate changes in the economy and keep your business strong. To learn more about how BestRx can help you recession-proof your pharmacy, request a free demo today.