5 Easy Ways to Grow Your OTC Business
Posted on Jul 24, 2024
Concerns over prescription fees and reimbursement rates continue to weigh heavily on the minds of independent pharmacies nation-wide. While there may be little you can do to change your profitability behind-the-counter, when it comes to the front-end of your store, the possibilities are endless. Not only do OTC items avoid the insurance reimbursement process altogether, but their acquisition costs typically don’t fluctuate as much as drug prices do. As a result, increasing your front-end sales is a great way to stabilize your bottom line. To get started, here are five easy ways to grow your OTC business:
Evaluate Your Inventory
Before you do anything else, it’s essential to spend some time reviewing your inventory and sales reports. This way you can quickly identify which products move and which are collecting dust on your shelves. You can also determine whether your ordering patterns are optimal, by evaluating things like minimum order amounts, shipping rates and carrying costs. Then, be sure to review historical sales data, to account for seasonal shifts in demand as well. Taking the time to evaluate your inventory will ensure that you’re stocking items your patients actually want, rather than operating on autopilot.
Make Effective Use of Displays and Shelf Space
Once you’ve determined which products to focus on, it’s time to turn your attention to your shelves and displays. Make sure seasonal and year-round best sellers are given prime positioning and are easily visible. Afterall, what good is it to stock items if patients have a hard time finding them. Then, be sure to rotate items appropriately using the first-in, first-out method. This helps to prevent product loss by placing your newest inventory at the back of the shelf, behind existing inventory that may expire sooner.
Promote Seasonal Best-Sellers
Aside from prominently displaying fast-moving items in your store, it’s important to do some external promotion as well. This includes things like creating sales on popular seasonal items and adding your OTC inventory to your pharmacy’s online business profile with Local Inventory by Google. You may even want to consider offering special bundled pricing on multiple items or a discount on items for receiving services like a vaccine. Plus, you can create custom email or text alerts, to notify your existing patients about any sales promotions you may be running as well.
Implement a Loyalty Program
Another way to grow your OTC sales is to encourage repeat business. Offering a loyalty program is an effective way to do just that. Whether you award points based on the amount spent or a token is given for every qualifying purchase, the ability to earn a reward incentivizes patients to continue shopping at your store. Plus, if your pharmacy utilizes our point-of-sale software, BestPOS, it’s easy to create a loyalty program around the needs of your business and its patients.
Simplify the purchasing process
Finding ways to make OTC items more accessible can also drive additional sales. This includes identifying ways to streamline the payment process and delivery options for both prescriptions and OTC purchases. These things provide your patients with added convenience and flexibility, so they’re more likely to have a positive experience and buy from you again. With BestRx, not only is it easy for you and your patients to track delivery statuses, but remote payment is available with our quick and easy text-to-pay functionality.
If you’re looking for ways to increase your profitability, the solution may be just over your pharmacy counter. For more information on how to grow your OTC business with BestRx, request a free demo today!