Presentation on theme: "T HE C HANGING F ACE OF R ETAIL P HARMACY Robert Miller."— Presentation transcript:
T HE C HANGING F ACE OF R ETAIL P HARMACY Robert Miller
T HE CHANGING FACE OF R ETAIL P HARMACY Who we are Robert Miller – Director of HPG Business Sales Lesley Sibley – Pharmacy Sales Manager Agents & Valuers of Pharmacy Businesses and Dental Practices Based in Hertfordshire We operate throughout England & Wales Part of Frank Taylor & Associates who have been established since 1988
SWOT A NALYSIS STRENGTHS 11,400 community pharmacies Each day about 1.6 million people visit a pharmacy in England Approximately 2.7 million items dispensed daily Strong relationships with customers Trust Advice
SWOT A NALYSIS WEAKNESSES Dependence on NHS dispensing fees Supporting traders closing down Customers being pointed elsewhere by doctors and notices in surgery waiting rooms Services income under threat as PCT’s put contracts out to tender
SWOT A NALYSIS OPPORTUNITIES To increase revenue from services Raise revenue from treatment rooms using Complementary therapists Promotion of Healthy Lifestyles Well stocked medicine counter Invest in modern shop fittings, shop front & signage - finance is available from FT&A Finance T
SWOT A NALYSIS THREATS Competition from distance selling pharmacies Tariff cuts
S URPLUS OF P HARMACISTS There are now more qualified pharmacists than there are positions available. This has lead to a reduction in pharmacists wages. This situation will continue for another 5 years even if university places are reduced this year Consider employing a 2 nd pharmacist for some hours during the week to increase MUR’s and other services. Locum pharmacists with accreditation and good references can be recruited from Locumlink T
C OMPETITION Distance selling pharmacies – these deny patients the opportunity to take advice when receiving their medicines. Not needed in England where 96% of the population can reach a pharmacy within 20 minutes either by walking or public transport. Dispensing doctors – These practices have unqualified people dispensing drugs and also work on a more favourable financial basis. Pharmacists should call for a level playing field.
G OODWILL The goodwill of retail pharmacies has been very buoyant during the past year with prices reaching 130% of turnover or more in some cases. If you would like to know the value of your goodwill call me for a free desktop valuation.
GOODWILL examples Pharmacy in home counties with 50:50 NHS to OTC split and high property costs. Turnover £950K – Sale price achieved £925K approx. 97% of turnover 100 hrs. pharmacy in London. Turnover £1.3 million – Sale price achieved £1.175 million approx. 90% of turnover Pharmacy on London/Middx. Borders working 9am to 9pm seven days per week. Turnover £1.2 million – Sale price achieved £1.3 million approx. 108% of turnover
Register today Any pharmacy owner who leaves us their details today and signs a Letter of Instruction before the end of January will receive a 20% reduction in our fees. The usual fee charged is 2.5% of sale price and this offer will reduce this to 2%
C ONCLUSION If you would like to have a confidential chat about your pharmacy, please contact us. Directly after this seminar By telephone on By