Understanding the factors impacting the pharmacy sector, and how others are performing, can be a great gauge for how your pharmacy is tracking. As Australia starts to look at life in a new COVID-normal environment, understanding where your pharmacy sits compared to your competitors in the current climate is crucial to ensuring your pharmacy’s ongoing plan for success. Furthermore, the ability to adapt to change and identify opportunities for growth will be the cornerstone to future recovery and business success.

What is Benchmarking?

Benchmarking is a process where key items of your store are compared against other similar pharmacies. Benchmarking allows you to understand how your pharmacy measures up, and where the opportunities for growth are. There are three main categories that we benchmark on: geographical location, model, and turnover.

When it comes to pharmacies, we analyse and benchmark the following areas:

  • Gross profit
  • Stock turnover
  • EBITDA
  • Wages
  • Sales per sqm
  • Scripts per day
  • Average script sale
  • Front shop – average sale
  • Scripts per customer

Benefits of Benchmarking

Performing a benchmark analysis can be beneficial for your pharmacy in a number of ways. Benchmarking can help you:

  • Understand which areas in your pharmacy require focus
  • Obtain data to better support decision making
  • Encourage new ideas though a strategic outlook
  • Understand the internal and external key performance metrics to manage your pharmacy
  • Mine data to identify ways to increase basket size and frequency of spend.

Benchmarking is a powerful tool to promote continuous improvements in any pharmacy business. With over 15 years in the Pharmacy industry and over 200 clients Australia wide, we benchmark against the best in the business. With clients across all types of pharmacy styles, brands, and locations, we’ve got up-to-date data to compare your business figures against to identify where the opportunities for growth are.

If you are ready to benchmark your pharmacy for success and grow your business, then contact our team to discuss how benchmarking can help you.

Lachlan Ballinger
Managing Director
LBallinger@yieldadvisory.com.au
0409 464 894