Best Buy’s Recovery a Model for Independent Pharmacies

Published - Written by Lester Nathan, MS

Best Buy has achieved a complete turnaround, according to Bloomberg News. They accomplished such a unique and outstanding comeback by doing certain things right, even in the age of Amazon. Here’s what it was based on:

  • Finding new revenue streams with the aid of a different business model, this is entirely feasible.
  • Creating income from services. In the case of the independent pharmacy, mastery of chronic diseases in which physicians are not really well-trained presents an opportunity to create a niche. Within that space you can further refine your presentation, for instance, to be the resident expert in healthy aging. When you can show a patient on statins how those drugs can interfere with longevity, then you become the acclaimed.

By April 2019, Best Buy’s stock advanced 39%, more than double the S&P 500 gain over the same period last year, according to Bloomberg News. However, the turnaround was not always steady nor was it easy, as depicted by their occasional downtrend in stock prices.

When Best Buy’s rebound was ultimately achieved, its architect, Cory Barry, was promoted to CEO, showing that all is well with the turnaround. Independent pharmacies with an ancient business model might well copy Best Buy’s turnaround plan. According to The Pharmacy Sage, the payoff can be significant.

In essence, they created a new business model. You should, too. The best business model is composed of the following.

  • compounding
  • natural medicine
  • fee-for-expertise
  • strategic marketing

To activate this business model, you need to do one simple thing: bring in a product that you can successfully market through many channels and on several different platforms. Of course, this presupposes that you definitely acquire marketing that’s going to get immediate and measurable results that you can take to the bank.

At the same time, it also presupposes that this marketing is without significant discounting and couponing, which means that you are also going to be building your profits, as well as your brand. The success of this single product launch can become the foundation for injecting several more products into the same strategy.

If you will totally pivot and dedicate yourself to modeling after Best Buy’s recovery, you should also include, according to The Pharmacy Sage:

  • Proper training for your team members so they can educate your patients with the proper information about any specific product that could help each one based on her particular ache, pain, or other malady.
  • Motivate people to join your crusade, which can very well be all about helping people feel better, live longer, and become more energetic.
  • Discussing with them where you’re going and how you’re going to get there to elicit ideas from them. You’ll be amazed at how much hidden talent you can bring about using this process.
  • In that fashion, you will be displaying your leadership in ways that you probably have not been doing in the past.

If Best Buy could do it in their fiercely competitive marketplace, you can do it too. You can turn your pharmacy away from dependency on insurance company compensation and more toward higher margin items, which can satisfy your patients in ways that other pharmacies are not yet doing. Your bank account likewise becomes a beneficiary.

The Pharmacy Sage can be reached at (518) 346-7021 or thepharmacysage@rxresultsnow.com

 

1 Comment

For advertising opportunities:

John Hydrusko, Vice President
(609) 716-7777 x 223
jhydrusko@pharmacytimes.com

Molly Higgins, National Accounts Associate
(609) 325-4837
mhiggins@totalpharmacy.com

For editorial questions:

Davy James, Managing Editor
(609) 716-7777 x 236
djames@totalpharmacy.com

Jennifer Barrett, Associate Editor
(609) 716-7777 x 839
jbarrett@totalpharmacy.com

Powered by Medstro