Saving independent pharmacies money and time by offering a free tool for comparing drug costs from multiple wholesalers at one time is our top priority at PrimeRx MARKET. We see it as a way to help you regain control of your independent pharmacy.
I like to keep tabs on how much you can save by purchasing 10-20% of your pharmaceuticals on the PrimeRx MARKET marketplace. In November, I showed how obsolete ordering systems were costing independent pharmacies a tremendous amount of money. Months later, that blog article is still one of our most read.
However, looking back on that article, it is clear that I had grossly underestimated how much money independent pharmacies waste each year.
How Much the Average Pharmacy Spends on Drug Inventory
According to NCPA’s 2013 Financial Digest, the average independent pharmacy had $232,118 in prescription inventory at any given time and turned that inventory 12.6 times over the course of a year. That means the AVERAGE independent pharmacy was spending $243,723.90 per month on prescription inventory.
We know that, since then, both brand name and generic drugs have become more expensive. Since I can’t predict exactly how much your independent pharmacy is spending on drugs each month, I created the table below using the likely cost savings available through PrimeRx MARKETat three monthly cost points: $250,000, $300,000, and $350,000.
|
Avg Monthly Drug
Inventory Costs |
% Purchased from
Primary Supplier |
% Purchased via PrimeRx MARKET |
8% Savings
|
14% Savings
|
20% Savings
|
|||
|
Monthly
|
Annually
|
Monthly
|
Annually
|
Monthly
|
Annually
|
|||
| 250,000 | 90% | 10% | 2,000 | 24,000 | 3,500 | 42,000 | 5,000 | 60,000 |
| 250,000 | 85% | 15% | 3,000 | 36,000 | 5,250 | 63,000 | 7,500 | 90,000 |
| 250,000 | 80% | 20% | 4,000 | 48,000 | 7,000 | 84,000 | 10,000 | 120,000 |
| 300,000 | 90% | 10% | 2,400 | 28,800 | 4,200 | 50,400 | 6,000 | 72,000 |
| 300,000 | 85% | 15% | 3,600 | 43,200 | 6,300 | 75,600 | 9,000 | 108,000 |
| 300,000 | 80% | 20% | 4,800 | 57,600 | 8,400 | 100,800 | 12,000 | 144,000 |
| 350,000 | 90% | 10% | 2,800 | 33,600 | 4,900 | 58,800 | 7,000 | 84,000 |
| 350,000 | 85% | 15% | 4,200 | 50,400 | 7,350 | 88,200 | 10,500 | 126,000 |
| 350,000 | 80% | 20% | 5,600 | 67,200 | 9,800 | 117,600 | 14,000 | 168,000 |
Of course, how much independent pharmacies spend on pharmaceuticals each month varies by a wide margin. Some spend under $100,000 a month, while others top $1 million monthly.
But looking at these figures for the average pharmacy, it’s easy to see that independent pharmacies that haven’t joined PrimeRx MARKET or aren’t using it as much as they could are paying a lot more for drugs than they need to.
How about you?
PrimeRx MARKET Savings Calculator
To make it easy for you to see exactly how much you could be saving on PrimeRx MARKET, I have created a very simple PrimeRx MARKET Cost Savings Calculator. Click the link below to download it.
To use the calculator, simply:
- Enter your average monthly prescription inventory cost in the far left column. You may need to first click the Enable Editing button at the top of the page.
- Click any place outside of that field
- The rest of the numbers will adjust to show your savings
This is an Excel spreadsheet, so you must have Microsoft Excel in order to use the calculator.
Help Other Independent Pharmacies Regain Their Financial Independence
NCPA estimates there are now 22,814 independent pharmacies in the United States. More than 10% of them have joined PrimeRx MARKET . This is a great start, but in order for there to continue to be a thriving community of independent pharmacies, more must start saving money on drug purchases.
Who do you know that should be taking advantage of the savings available at PrimeRx MARKET ? Use the sharing buttons below to spread this story on social media.
Together, we will win the fight for lower drug prices and a nation of thriving community pharmacies.
