How to Start a Drug Store Business
The drug store business has become an integral part of today's economy. Medicine industry has grown in leaps and bound through the years. Read this article if you want to join in on the action and open your own medicine store business.
In a nutshell, drugstores are described as retail establishments that market drugs, be it prescription, proprietary, or non-prescription medicine.
To cater to the general consumer public, some drugstores also sell goods like: batteries, beverages, blank videotapes, candy, cigarettes and cigars, contact lens solutions, cosmetics, diet aids, disposable diapers, film/film developing, fragrances, greeting cards, hair care/skin care products, magazines/books, novelty items, oral hygiene products, pet food, small art and crafts items, snack foods, vitamins and more.
If you are interested in starting your own drugstore, here is list of information that may prove to be useful along the way:
- A drug store marketing plan is essential for a startup. With it, you will be able to determine whether or not the area you are considering is already saturated with competition. And whether or not the populace is substantial enough and is earning sufficiently enough to support your drugstore.
- Prescription medications is said to be the top seller among all the items sold. Studies reveal the following ranking in terms of sales generated: (1) Prescription Medication (2) Proprietary Drugs (3) Toiletries (4 ) Tobacco Products (5) House ware (6) Cosmetics and (7) Others such as: candy, general merchandise, grocery items, liquor, stationery, toys, and other miscellaneous goods. In light of this, it is therefore imperative to focus or concentrate on this section of the pharmacy.
- The forecast for growth of this industry is positive. A vastly improved hospital and health care resulted to
a marked increase in the percentage of aging Americans. Subsequently resulting to an increase in the sales of prescription and propriety medications. Take advantage of this trend by stocking up on this product line.
- The more shelf space you have, the better. If the bulk of your products are displayed and visible for the browsing patrons to see, then chances they might be enticed to buy.
- This industry is a competitive industry. Aside from brick and mortar drugstores, there are also online pharmacies to contend with. Other establishments such as supermarkets and discount stores have stocked up on proprietary drugs, some even set up their own pharmacy within their store. It is important to know this fact so you won’t walk into the drug business blind.
- When looking for a place to set up your drug store, pay attention to the zoning requirements of the area. A lot of localities have restrictions when it comes to the type of businesses they allow in the area.
- You must allocate funds for your initial medical store startup investment which includes advertising, supplies and equipment, remodeling/building expense. Also allocate a portion of your funds for operating cost (until projected break-even period). This includes lease payment, employee wage, and unforeseen expenses etc.
- Your medicine shop must have a licensed pharmacist present at all times. If you are not a licensed pharmacist, then you should hire the services of one. On average, a person in with this credential earns approximately 30K to 40K per annum. You must also hire one to two sales clerks to assist your customers plus an office clerk to deal with the paperwork associated with running drugstore like credit card billing, inventory, accounting etc.