Defend the Pharmacy May 7 2015 Fritz Wood

Defend the Pharmacy May 7, 2015 Fritz Wood, CPA, CFP Lenexa, Kansas

Homework Assignment Commit to two or three things you’ll do in the next 30 days to defend your pharmacy.

Promoting (sales of!) products you believe in, without feeling Needy Ø Cheesy Ø Greedy, or Ø Sleazy Ø

Product Sales: Fight or Flight?

FIGHT!

You can’t afford to give away one-third or onefourth of your total gross income! Don’t complain…compete!

Your pharmacy business has radically and forever changed. Pet owners demand value, and affordability is more important than ever

Why should I buy from you? What do I get at your practice that I don’t get anywhere else?

Identify obstacles Why aren’t we doing better today?

Industry challenge: Decline in Transaction Volumes • “Sticker shock” is a leading factor in the decline of patient visits Source: Bayer Health. Care LLC, Animal Health Division, Bayer Veterinary Usage Study

If each visit was less expensive, 47% of dog owners and 54% of cat owners agree they would take their pet to the veterinarian more often. Source: Bayer Health. Care LLC, Animal Health Division, Bayer Veterinary Usage Study

The #1 method to increase the number of dog visits and the #3 method to increase cat visits is to offer competitive product prices. Source: Bayer Health. Care LLC, Animal Health Division, Bayer Veterinary Usage Study

What matters? Flea/tick control Ø Heartworm preventive Ø Nutrition Ø NSAIDs Ø

Is there a role for veterinary generics?

What about: • NSAIDs? • Antibiotics? Are clients brand loyal?

Currently, only 7% of FDAapproved pioneer brand name pet medicines have a generic equivalent. More than 80% of human prescriptions (what we use for ourselves and our children) are filled with generic drugs.

What matters? Flea/tick control Ø Heartworm preventive Ø

Compliance Tips Ø Establish & adhere to protocols

Every Pet, All Year Long Administer year-round broadspectrum parasite control with efficacy against heartworm, intestinal parasites, fleas, and ticks.

Prevention: AHS recommends yearround administration of chemoprophylactic drugs to prevent heartworm disease, enhance compliance, and control pathogenic and/or zoonotic parasites

Therefore, practicing veterinarians can provide an important public service by recommending regular fecal examinations, providing welltimed anthelmintic treatments, counseling clients on potential public health hazards, and advising them on anyprecautionary measures that may be taken.

Assessment On the basis of history and physical examination findings, assessments are made for: q Medical conditions q Infectious and zoonotic diseases q Parasite prevention and control q Dental care q Genetic, breed and age considerations q Behavior q Nutrition

Every dog should have: q. Annual heartworm testing in accordance with existing guidelines q. At least annual internal parasite testing

Every dog should receive: q Year-round broad-spectrum parasite control with efficacy against heartworms, intestinal parasites and fleas

Every cat should have: q Heartworm testing in accordance with existing guidelines q Retrovirus testing in accordance with existing guidelines q At least annual internal parasite testing

Every cat should receive: q. Year-round broad-spectrum parasite control with efficacy against heartworms, intestinal parasites and fleas

Compliance Tips Ø Ø “Need” vs. “Recommend” “Show and tell” consequences of non-compliance Create urgency Exam room dispensing

Ø Ø Ø Compliance Tips Quote authority (AAHA, AVMA, AHS, CAPC, FDA, etc. ) Use social proof Use prevalence maps (www. capcvet. org)

Compliance Tips Ø Ø Ø Larger dose packaging Mfg. guarantees & promotions Follow-up (schedule next appointment, remind, auto-refill, etc. )

Compliance Tips Ø Ø Use an online store/veterinaryfriendly pharmacy Promote competitive price per dose or price per day

FLP Price Comparison Price/pkg. Pet. Meds Pet. Smart My vet $ 74. 98 $ 98. 99 $107. 86 Price/month $12. 50 $16. 50 $13. 48

This simple graph tells me: o o o You know the market is competitive You acknowledge that clients have choices You’re sensitive to market prices You’re not ashamed of your prices – you’re proud of them! You have nothing to hide – you’re perfectly transparent!

This simple graph tells me: o o o You’re honest and trustworthy As a client advocate, you don’t want them to overpay by buying elsewhere All your products and services must be competitively and reasonably priced I have peace of mind, knowing I’m buying at a good and fair price It’s safe for me to refer you to others

HGP Price Comparison Price/pkg. Pet. Meds My vet $102. 98 $106. 36 Price/month $8. 58 $7. 86

Homework Assignment Commit to two or three things you’ll do in the next 30 days to defend your pharmacy.

10 lb cat

Product %Pro DM Cost Amt Cost/Day Aristocats 55% $0. 45 4 $1. 80 Whiskas 56% $0. 74 3 $2. 22 Hy-Vee 59% $0. 54 3 $1. 62 Meow Mix 50% $0. 76 4 $3. 04 Fancy Feast 64% Science Diet 36% $0. 68 $1. 08 3 $2. 04 11/3 $1. 40 1¼ $2. 13 Feline Adult Prescription Diet 28% Feline k/d $1. 70

10 lb dog

Product %Pro DM Cost Beneful 50% $1. 95 1 Alpo 48% $0. 79 0. 75 $0. 60 Mighty Dog 45% $0. 79 1. 5 $1. 19 Hy-Vee 41% $0. 59 1. 8 $1. 06 Cesar 44% $0. 78 2. 5 $1. 95 Science Diet 27% 0. 75 $1. 44 $1. 92 Amt Cost/Day $1. 95 Canine Adult Prescription Diet 15% Canine k/d $2. 33 0. 66 $1. 54