Is owning your own pharmacy a good idea?
HOw much money do they make??
Any opinions
HOw much money do they make??
Any opinions
Is owning your own pharmacy a good idea?
HOw much money do they make??
Any opinions
Is owning your own pharmacy a good idea?
The answer is probably not. If you own your own pharmacy, your are practicing in a retail setting. In the Philadelphia area, retail chain pharmacists can earn between $100,000.00 and $125,000.00 per year. At a one percent net profit you would need between $10,000,000. and $12,000,000.00 (that's between 10 and 12 million per year). The risks are enormous and the rewards are not that much greater than working for a chain.
That's the long answer, the sort answer is NO.
Now, I've never sat down and looked at the books for any of the pharmacies who's owners are assuring me of their success, but I'll keep an open mind until it's time for me to think more seriously about it.
Whatever you put in you get out.
Don't let the other replys get you down. Go for it if you want to.
Bunk, or bull feathers or whatever else I can say that says, you are just dead wrong. You have a very small sample. The truth of the matter is independent pharmacies are closing at an alarming rate. They cannot make ends meet.Independent pharmacies do well. I have worked in one that is in the family and know 3 other people that own others.
More Bunk and Bull Feathers. Retail Chain Pharmacists have seen their salary increase by about 40% over the last five years. Ask any independent if they have seen this kind of increase. Independents are loosing income every year. That's why they are going out of business.And as far as hard work goes, it can be, but consider this. However hard you work for cvs or walgreens do you see an increase in salary? Nope.
Well this is partly true. You have no one to answer to except your creditors. What you put in goes to them before you get any back. It's hard to make ends meet when you pay your wholesaler weekly and the PBM's pay monthly.At an independent you are working for yourself. Whatever you put in you get out. Also, you are the boss. Don't like having to answer to that annoying DM, me personally at certain places the music I had to listen to drove me crazy.
The problem here is NOBODY is buying them because the investment is NOT WORTH it. Why would you pay $250,000.00+inventory to buy a business and work at least 40 hours on the bench and extra time cooking the books when you can work 40 hours and invest the money in any other investment vehicle.And yeah alot of older people own pharmacies and are closing them. Want to know why, they are retiring. Which means there is enormous potential to own more pharmacies in the coming years as baby boomers retire and are willing to sell there pharmacy.
I have my own store. I never wanted it, previous owner ran in to 'trouble' and I was offered the store at reasonable terms. There is money to be made. I fill about 275 rx's a day and at the end of the year I have about $100,000 left over. I pay myself $100,000 and a part time RPh $45,000. I also am paying about $80,000 a year to buy the place. When it is paid for that money will be there at the end of the year also.
Could you pick a spot and start your own store and do well? I doubt it, my store has been around since the mid 50's. People have shopped there longer than I've been alive. Someone else built it up under better conditions. I do my best to maintain.
I do know of a pharmacist who was very outgoing, made tons of friends at a chain store and after 5 years opened his own store. That store is doing very well but he has a special personality. I tend to be a grouch and like to fight with people. I'd last about 6 months until I folded.
Bunk, or bull feathers or whatever else I can say that says, you are just dead wrong. You have a very small sample. The truth of the matter is independent pharmacies are closing at an alarming rate. They cannot make ends meet.
Well I still dissagree. My sample may not be very large, but you haven't provided any statistics or examples, so yours is worse.
More Bunk and Bull Feathers. Retail Chain Pharmacists have seen their salary increase by about 40% over the last five years. Ask any independent if they have seen this kind of increase. Independents are loosing income every year. That's why they are going out of business.
You didn't respond to what I said. The chain pharmacists salarys have grown yes. Now what i said was, if you work harder for a chain pharmacy do you get to keep the extra profits you brought in? No you don't.
Well this is partly true. You have no one to answer to except your creditors. What you put in goes to them before you get any back. It's hard to make ends meet when you pay your wholesaler weekly and the PBM's pay monthly.
The problem here is NOBODY is buying them because the investment is NOT WORTH it. Why would you pay $250,000.00+inventory to buy a business and work at least 40 hours on the bench and extra time cooking the books when you can work 40 hours and invest the money in any other investment vehicle.
Well because you can make more money, and run things how you want. Look at the poster who owns his own. yeah he paying himself 100k a year, but when he pays the pharmacy off he will get that extra 80 making it 180k/yr. Or maybe he could just hire another pharmacist and work 10 hrs a week making 100k.
You are speaking to someone who spent all of my life in independent retail pharmacy. Owning my own place was a life long dream. I had the location and a right of first refusal to match any other offer. I could NOT justify risking my house and all of my fortune for a business with a 1-2% net profit. As long as pharmacy is piece work and volume dependent, which it is unless you have a niche, nursing home, veterinary, compounding, whatever you cannot generate enough volume to make ends meet.
I reread my original post and I was right then and I am right now. Unless you have a niche, it's not worth it.
If you can check out the ncp pfizer digest, it is statistics on independent pharmacies. You can read a summery here: http://www.ncpanet.org/pdf/digest06_summary.pdf
Be careful what you read! This is an old & flawed report, even though it is dated Nov 2006. The reason is - the data is compiled from 2005 and Part D has decimated many, many rural independent pharmacies.
Also, read the text & look at the pie chart. The text classfies independent pharmacies as chain, franchise, LTC, specialty & supermarket - then it breaks out the supermarket pharmacies in the pie chart. It can't be in both.
It is saying independents are classified as those, but they are still independently owned, just in those specialties or located in a supermarket. Then it takes the whole catagory as independents and compares it to other corporate ones such as supermaket pharmacies not independently owned.
Also....in my area, the LTC pharmacies are NOT independent pharmacies - they are large, corporate owned closed door pharmacies & service over 1000 beds. I'm sure there are a few pharmacies who fill rxs for LTC here & there, but again, increasing regulation & restrictions are making this difficult, as is compounding.
One of the first things you learn in pharmacy school is critical reading skills. Although the Pfizer Digest is well known - it also comes with tremendous bias. This perhaps is a closer look at more current data:
www.pcmanet.org/.../2007/Documents/ SKA%20Research%20Consumer%20Access%20to%20Pharmacies%202007%205_1_07.pdf
I couldn't get the link to work. but I have still not seen any statistics pointing out how bad an idependent pharmacy is.
although, you must question its authenticity as well since it does not tell us how the information was received.
The best look is from the NCPDP files & I can't get to them right now.
But - to the OP - good luck! Its your money & time only. Give it a try if you have the business ability.
A local pharmacist bought me dinner a couple weeks ago. This was because the main topic of conversation was her compounding pharmacy, her mentor, and his private jet which he pilots to transport tetracaine from the USA to his compounding manufacturing facility in Costa Rica. Did I mention he is "just" a pharmacist?
Oh yea...we discussed a new branch opening in 2011 😛
The more of you discouraged in the future of independent pharmacies the happier I am.
get me on the new one in 2011
The National Community Pharmacists Association (NCPA) today released
preliminary data from its annual NCPA-Pfizer Digest -- a comprehensive
financial and demographic survey of the nation's independent community
pharmacies -- showing a downturn in several key economic measures for the
first time in a decade. The most troubling Digest figures from 2006 are a
multitude of store closings, stagnation in the average total prescription
sales, and plummeting net operating income.
For this interested in more information, please read this article in the Washington Post.
I agree with Me+PharmD.
Keep believing owning your own pharmacy is a bad thing. There will always be a small group of us watching the masses...and go the other way. Following the masses will get you to a very crowded and undesirable place.
Exactly
come up with your own idea... you still cold turkeying?![]()
I agree with Me+PharmD.
For those of you saying it's not worth it, it's not worth it for you. But at the same time, to be successful in business, you have to think outside of the box (cliche') I know. Owning a pharmacy doesn't have to be a retail pharmacy as you know it...churning out scripts making small margins.
Besides my day job, I own a DME/Pharmacy specializing in Ped Nutrition & Oxygen... Ped Nutrtion gross margin is 45%... but always changing. We have 25+ employees...dieticians, pharmacists, customer service reps, delivery personnel, and warehouse folks.
Yes, it's a closed door pharmacy.
Keep believing owning your own pharmacy is a bad thing. There will always be a small group of us watching the masses...and go the other way. Following the masses will get you to a very crowded and undesirable place.
Very true. I've always wanted to own my own pharmacy, just nervous about these ins companies. Perhaps I will find something that no other chain or independent offers and go from there. Who knows...
One of my biggest fears in life is having to say "I should've" while on my deathbed.
You are so right🙂
I love it when everyone agrees with me.....
Nuclear, DME, pediatric nutrition, nursing home, etc. It's a niche. It's not regular old community pharmacy.... You can make a very nice living like this as I pointed out. Unless you are in one of these more profitable areas, you will not last long....
In the Philadelphia area, retail chain pharmacists can earn between $100,000.00 and $125,000.00 per year. At a one percent net profit you would need between $10,000,000. and $12,000,000.00 (that's between 10 and 12 million per year).
It is amazing what a pure ounce of desire can foster.