Your revenue is holding steady, your margin is declining, and the balance sheet doesn’t explain why or where to start. Part of your sales is at a price you don’t set, while the rest depends on your prices, discounts, and product assortment. Example from the white paper: a 20% discount on a product purchased for €6 and sold for €10 cuts its margin in half, so you have to sell twice as much to maintain your revenue.
White paper
How can you boost your pharmacy's profit margin?
This white paper shows how to identify sources of margin loss in a pharmacy by distinguishing between reimbursable products—where you control purchasing and inventory—and non-prescription products and consulting services—where pricing and discounts are your decisions. It measures the contribution of each factor: sales mix, purchasing terms, pricing, discounts, and markdowns.
By downloading it, you will discover
- Why Revenue, Margin, Profit, and Cash Flow Don't Answer the Same Question
- Why the reimbursable segment and the over-the-counter segment are managed using different strategies
- How to measure the impact of product mix, purchases, prices, discounts, and markdowns on the decline in margins
- How to Calculate the Margin Generated Per Euro of Inventory to Identify Idle Cash
- How to Run a One-Hour Monthly Meeting Using a Single-Page Chart
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