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To be profitable, a drugstore’s gross profits must exceed its operating expenses.
For example, a pharmacist-operated drugstore could report a “net loss” if the pharmacy owner chose to pay himself or herself a larger salary instead of reporting a positive net accounting profit.
A PHARMACY PROFIT PRIMER A pharmacy’s revenues come from prescription drugs, over-the-counter products, vitamins, cosmetics, groceries, and other merchandise.
A typical independent pharmacy generates more than 90% of its revenues from prescriptions.
ACH credit transfers include direct deposit, payroll and vendor payments.
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Not everything over there is fully functional yet, and the internal links still point to this blog, and will for the indefinite future.
Read on for my look at pharmacy profits and my advice for pharmacy owners.In a previous report, the NCPA Digest defined the sum of Owner Compensation and Operating Income as Owner's Discretionary Profit (ODP).Thus, ODP represents two of the three ways a pharmacy's gross profit dollars can be spent.Here's the press release: Independent Community Pharmacies Vital to Patient Medication Access, NCPA Digest Finds.Below, I review our latest estimates on pharmacy economics and margins.
The NCPA's Doug Hoey published his summary in A Roadmap for Independent Community Pharmacies. They do however provide the only publicly available, consistently published look at the financial position of independent pharmacies.