5 Easy Ways to Grow Your OTC Business

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. Read more >