It's Your Business volume 3

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BUSINESS SEPTEMBER 2012

A PHARMACY NEWS PUBLICATION

Generic growth

Recruiting

Successful substitution can improve your bottom line

Tips to help you hire the right people

Websites How to get your business site off the ground

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Look beyond HbA1c New pharmacy modules now available: • Pharmacy Professional Services Process CPD online educational module (8 group 2 CPD credits) • Pharmacy Assistant learning module on structured SMBG

Visit and register on: www.accu-chekacademy.com.au 3/ 5

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Experience what’s possible. www.accu-chekacademy.com.au • Accu-Chek® Enquiry Line: 1800 251 816 For people with diabetes. Use only as directed. Consult your healthcare professional for advice.

ACCU-CHEK and ACCU-CHEK 360° VIEW are trademarks of Roche. © 2012 Roche.

All other trademarks are the property of their respective owners.

Roche Diagnostics Australia Pty Ltd, 31 Victoria Avenue, Castle Hill, NSW 2154, ABN 29 003 001 205.

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Pharmacy NewsTeam Team Pharmacy News Editor: Chris Chris Brooker Brooker T:T:(02) 2908 (02) 9422 9422 2908 E:E:christopher.brooker@ christopher.brooker@ reedbusiness.com.au reedbusiness.com.au Journalists: Journalists: Nick O’Donoghue O’Donoghue Nick (02) 9422 9422 2825 T:T:(02) 2825 nicholas.odonoghue@ E:E:nicholas.odonoghue@ reedbusiness.com.au reedbusiness.com.au

SEPTEMBER March 2012 2012

CONTENTS

Kirrilly Burton Kirrilly Burton (02) 9422 9422 2874 T:T:(02) 2874 kirrilly.burton@reedbusiness.com.au E:E:kirrilly.burton@reedbusiness.com.au

Buildingwith yourwholesalers website Dealing

Sub Editor: Sub Editor: Andrea Kunz Andrea Kunz (02) 9422 9422 2554 T:T:(02) 2554 E: andrea.kunz@ andrea.kunz@ E: reedbusiness.com.au reedbusiness.com.au Advertising Advertising Account Manager Account Manager Fiona Duke Fiona Duke T: (02) 9422 2721 T: (02) 9422 2721 E: fiona.duke@reedbusiness.com.au E: fiona.duke@reedbusiness.com.au Tom Rutherford T: (02) 9422 2372 Production E: tom.rutherford@reedbusiness.com.au Production Co-ordinator: Tracy Duff Production T: (02) 9422 8923 Production Co-ordinator: E: tracy.duff@ Tracy Duff reedbusiness.com.au T: (02) 9422 8923 E: tracy.duff@ Graphic Designer reedbusiness.com.au Nick Cox T: (02) 9422 2166 Graphic Designer E: nick.cox@reedbusiness.com.au Nick Cox T: (02) 9422 2166 Publishing Director: E: nick.cox@reedbusiness.com.au Suzanne Coutinho

4 5

Service provision Category management

108

Generic substitution Dispensary technology

13 14

Superannuation Managing your super

18 20

POS systems Handling 2012

23 24

Recruitment Store security

28

The Rentneed for data

32

Publishing Director: Circulation & Subscription Suzanne Coutinho Inquiries T: (02) 9422 2666 or 1300 360 126 Circulation & Subscription Pharmacy News does not accept Inquiries responsibility for claims made by T: (02) 9422 2666 or 1300 360 126 manufacturers theirnotproducts.

Pharmacy Newsfordoes accept www.pharmacynews.com.au responsibility for claims made by manufacturers for their products.

Printing www.pharmacynews.com.au GEON 20 Baker St, Broadmeadow NSW 2019 Printing GEON Copyright 2012 NSW by 2019 20 Baker©St, Broadmeadow Reed Business Information ABN 80 132 719 © Copyright 2012861 by Tower 475 Victoria Avenue, Reed2,Business Information Chatswood, 2067 ABN 80 132NSW 719 861 Phone (02)9422 Tower 2, 475 Victoria2999 Avenue, Fax (02)9422 Chatswood, NSW2822 2067 Phone (02)9422 2999 Fax (02)9422 2822

Average Net Distribution Period ‘11 Period ending ending Sept Mar ‘12 7102 7088

It’s all in the system T

he legendary New York Yankees baseball catcher Lawrence Peter (Yogi) Berra, famous for his (perhaps unintentional) witticisms, once said: fewtake years “When you come to a fork inhe thenext road, it.” promise to be trying Uncertainty applies to many business decimost community sions. What are we to do for when confronted by pharmacies. new technologies, new ideas, new competitors?

The unique set of -issues, Do weprofession turn boldlyfaces to toathe unknown but without including patent expiries, rent increases, and price the get-out clause of Scotty beaming us out of disclosure. there? Or do we adhere to the old certainties, So what can average pharmacy protect even if they arethe becoming dated? In do thistoissue we themselves from the worst of ways this? Isofitdoing too late? consider the impact of new things this issue we present articles covering key toponIncommunity pharmacy. ics, How with views andset tipsupfrom experts. busican you andleading run a successful What role does category mananagement play in keeping your store viable? How can you maximise

ness website? How do you access and use the best data? How can you maximise profits from generic substitution? How can you best use your POS system?

If you have any questions or suggestions for the return best categories?

How can you you future It’s from Youryour Business topics, I encourage negotiate the bestme. dealWe withare wholesalers?

What to write or email in the process of steps can you take to improve youron rental setting-up a business Q&A blog our outlook?

Pharmacy We also look atsohow youtuned. can best make News website, keep Finally, weyour are super work for you, andof how can improve theCPD hoping to have some ouryou business articles security of your accredited, so store. soon, when you get to that fork in And don't forget to let usto know of the any best topics you the road, you will be able make deciwant covered sion to onsee which road in tofuture take. issues of It's Regards Your Business.

Email me at editor@pharmacynews.com.au or visitChris our website: www.pharmacynews.com.au.

Regards, Chris

The coming storm T

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building youR website

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into via your website or do you think because everybody is talking about online, you think you should be in it – but you are not sure why.

If it is the latter – stop reading now – you are not ready for this. If it is the former, then perhaps keep reading and consider some of the crucial steps that you may lead you into this brave new and anarchic world.

STEP 2. HOW ?

John Gearing, from Pharmacy4u describes how to set up a multichannel pharmacy

D

o you want your own website?

This is a decision confronting many of Australia’s pharmacists and other small business owners. The retail giants are spending tens of millions of dollars creating and integrating an online channel into their businesses, so it is inevitable that small business will want to consider a similar move.

Much has been said and written about the size of the online channel and opinions on this are like noses – everybody has one.

Phil Ruthven, one of our greatest business gurus said recently that he expects almost 30 per cent of retail to be online within ten years.

So how should you do it?

STEP 1. WHY? You want your own website – but does this represent an opportunity or an obligation ?

Do you think of a website as an opportunity to extend the reach of your pharmacy into the home and offices of your customers, giving them enhanced and more convenient ways to shop with you, and to offer them a range of enhanced services that they can link

Don’t even think about doing it yourself or getting a mate who knows a little about IT to give you a hand – this is not a long-term solution and will lead to much frustration.

Pharmacy is highly specialised and diverse, hence the solution you require has to be highly specialised and designed for your pharmacy, adaptable for ongoing changes and provide the capability for simple maintenance of range, pricing and marketing A complete and comprehensive solution provider is necessary - one that is committed to ongoing enhancement of capability and adaptability to the diversity of the industry and your pharmacy, with a full suite of marketing options to allow you to get your message out.

For a group of pharmacies, go for a solution that provides each store with their own website, thereby enhancing the value of each store. This will also allow you to manage the group from one central point.

Moves by some pharmacy brands to create a central fulfilment model where all orders are shipped to customers will not benefit individual stores. There may be some passive income, but little in added value, and the system will create competition between franchisor and franchisee.

Recent moves by Discount Drug Stores to create 100 + individual store websites, controlled centrally is a great example of best practice.

STEP 3. WHAT IS YOUR STRATEGY ?

If you have got this far, you have done the easy part.

How will you make your online offer and your pharmacy different and unique from others?

How will you grab the attention and interest of your customers and of those who are your potential customers?

These are key issues and are often brushed aside, but they are fundamental and individual. Work with

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“Work with your team, your solution provider and strategic business advisers, to decide how you will use this new channel.” your team, your solution provider and strategic business advisers, to decide how you will use this new channel.

The strength of the web is its adaptability and you can use it to shift focus across many different areas of the business from broad product offering to niche marketing within which you have expertise.

This is the time for wish lists and to find and define what is different about your business.

STEP 4. RESOURCES We still haven’t started – this is not the time to rush to completion – it’s the time to get the ducks in line.

There are at least three of these.

1/ Internal Resources The experience of many in the multi-channel world including the biggest, Wal-Mart, is that unless your in-store team support and understand your multichannel venture, they will oppose it, either directly or subtly .

Comments such as “I don’t know anything about online” are common and destroy the cross-channel consistency that is essential to success.

So include them all upfront and perhaps incentivise customer recruitment into your database and use a rewards program – Coles have done this so well with their new Flybuys, which is now Australia’s A D _ I Y B P H A 2 S E largest P _ 1 2retail . p database. df Pa ge 2 2 2 / 0 8 / 1 2 ,

Use your best communicator to run your Facebook and Twitter program – yes, social media! You are going to have to do it, so why not start early?

2/ External Your IT solution provider should be looking to provide you with the solutions to execute your strategy and also to work with you to develop your online channel, so stay in touch and be demanding and challenging.Your success is their success.

Suppliers, reps etc. are also vital.

Many suppliers have co-op fatigue and are questioning me-too type promotional activity. An online channel can offer a whole new set of options for a supplier with many variations and sales metrics, providing simple value measures for them.

All you need is that database, and you could have lots of fun. There could be a shipping arrangement with a supplier of goods you normally don’t stock – they ship the goods to you for pick-up or to your customer and you get the sale, but don’t have to wear the inventory. Big W, Myer and DJs will each have over 80,000 SKUs on their websites, far more than in-store, and will create the ”Endless Aisle”.

3/ Marketing Marketing is where the online channel excels, and it

9can : be 5 6achieved A M almost without cost.

Strengthen your pharmacy’s buying power with one phone call.

Call 03 9860 3300 and we’ll show you how.

6 | IT’S YOUR BUSINESS | SEPTEMBER 2012

Your formula for independent strength

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BUILDING YOUR WEBSITE

FIVE KEY TIPS FOR GETTING THE MOST OUT OF YOUR WEBSITE: 1. Setting up a website is classed as stage zero.

2. Engage your in-store team.

3. Use digital marketing, it is low cost, direct and measurable. Link it to a rewards program if possible.

4. Devise a strategy that avoids a “me-too” approach.

5. If you wait for a perfect solution, you will never start your online journey.

Pharmacy marketing has for many years been quite uni-dimensional – broad media advertising on product and price, or catalogue promotions with minor variation.

However, there is now considerable consumer and supplier fatigue associated with this scatter-gun approach.

The web offers limitless marketing opportunities, but you need a hook. A simple hook is a rewards program and many are available.

The program should pick up all store purchases, both online and in-store and relate them back to particular customers who you are able to contact digitally.

This is not about giving margin away, more a tool for profiling customers to anticipate potential purchase and other needs, then providing suggestions or solutions to those needs.

It is not rocket science, but it must be part of your website so that customers can receive and interact with your messages.

If you want to stay with catalogues, perhaps consider how an online catalogue could differ from a regular version – perhaps solution based or range focused and unlimited in variation, thus sparking interest and surprise from a customer.

Many tools are available: email marketing, SMS messaging with hot links to your website, “Deal of the Day” online capability and much more.

Social media is a brave new world. Many are struggling to work out how to make this work for them, but a few things are clear.

Facebook is great for a newsinfo loop with your customers, but you must avoid preaching and you have to be relevant.You also have to be prepared to cop criticism. If you are happy with this, put your best communicator on to it. Twitter is different and suits flash offers such as “Deal of the Day” Having done all this you have finally arrived at the start of a new venture and something that, if entered into with commitment and determination, will add substantially to the value of a business. This is only one way to do it – you may have your own unique view on how to make the most of the internet.

The web offers an unlimited range of opportunities, of which the above are but a few. ◆

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SERVICE PROVISION

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SERVICE PROVISION

A QUESTION OF SERVICE Are ‘professional service’ and ‘service provision’ terms that are here to stay? John Koot, managing director of Willach Solutions Australia looks at what is driving the service trend.

U

ndeniably ‘professional service’ and ‘service provision’ have become the buzz terms of the industry since the instatement of the 5CPA. However, is this a mere fad or indeed a business imperative?

A somewhat exclusive and protected industry, pharmacy has enjoyed a comfortable profitability for a long time, with few driving forces motivating it to make significant changes to its operations.

The threat of deregulation is always in the back of the industry’s mind, but it is only since the introduction of the discounter model, a little over a decade ago, that we have really needed to reassess our business strategy as we do now.

SERVICE ON THE AGENDA In Australia, there are a number of internal and external environmental business factors suggesting the movement towards a service-focused pharmacy model is not only the most viable option, but integral to survival for most community pharmacies.

PBS reforms are squeezing what historically have been AD_ I YBPHA3 SEP _ 1key 2 . revenue p d f streams.

P a g Whilst e 3 the2 full 2 / extent 0 8 / of1 this 2 ,

may not be felt immediately, strategic decisions made now may be the deciding factor between which pharmacies sink or swim.

For many pharmacies, competing successfully with the heavyweights of discounting is not a long term sustainable measure. The need to refocus on service provision therefore becomes the obvious strategic choice. In fact this shift has been observed globally by researchers. Professional pharmacy services are defining pharmacy business positioning, providing differentiation from competitors and enticing the customer through a more clinical and professional approach.

This becomes further evident if we use a tiered business analysis approach to reflect on current factors impacting our pharmacy business on a variety of levels and where the key opportunities lie.

EXTERNAL FACTORS Externally, political and economic factors such as the 5CPA, reduced government expenditure driving PBS reforms, reduced remuneration for traditional tasks i.e. dispensing, price disclosure and increased funding alloservices under the 5CPA largely 9cated : 5 6to professional AM

Increase the potency of your pharmacy’s retail program.

Call 03 9860 3300 and we’ll show you how.

Your formula for independent strength

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SERVICE PROVISION

Political Social Economic Technological

EXTERNAL BUSINESS ENVIRONMENT

INTERNAL BUSINESS ENVIRONMENT

INDIVIDUAL BUSINESS ENVIRONMENT

support a service-focused business strategy.

With the over 65 age bracket accounting for 80 per cent of pharmaceutical consumption (KordaMentha, 2011) and increasing community awareness of health issues driving the demand for both health products and professional services, the social impact is further evidence for service based business opportunities available to pharmacy.

Finally, in support of all this, is the wide array of technological advances assisting with internal business operations as well as at the interface between customer and pharmacist e.g. eRx, Guildcare and automated dispensing technologies to name a few.

Within pharmacy Internally, within the industry there are also factors present conducive to a service-focused business strategy. Price disclosure and Pfizer

New Entrants Substitutes Suppliers Buyers Competitor Rivalry Strengths Opportunities Weaknesses Threats

flexing its bargaining power inadvertently impact on the cost of items from suppliers and the need to recoup lost profits elsewhere.

Although current regulations prevent the entry of new players to the industry, major supermarket chains are increasing their health product offer in addition to traditionally being strong competitors to pharmacy’s front of shop offer. However, professional pharmacy services complementing our unique S2,S3 and prescription offer are not substitutable and are our key point of differentiation from other retailers.

In fact, it is these professional services that provide the opportunity for differentiation and decrease the level of rivalry not only from competing retailers but other pharmacies.

Lastly, consider the internal resources and capabilities of your business not only to compete successfully but succeed financially. Too often we see typical community pharmacies trying to compete with the key discounters when this is not their strength, nor a viable path

TOP TIPS

Maximise your Service opportunities 1. Investigate – are your customers aware of services available? What would they consider valuable? Run a short ‘tick the box’ questionnaire for a month to identify marketing gaps (you will be surprised!) and potential customer needs.

2. Select – identify which services you are able to focus on. What isn’t the competitor doing or what can you do better? Consider what resources you have that provide you with an advantage.

3. Plan – develop a clear game plan that staff understand and can follow. Who will be involved? How does workflow need to change to allow for this to

10 | IT’S YOUR BUSINESS | SEPTEMBER 2012

happen? Who will monitor, measure and record any details required? Unfortunately successful service provision will not happen spontaneously!

4. Promote – awareness creates demand; actively promote & market your pharmacy services, first and foremost encourage staff to inform customers also consider local paper advertising, liaising with local doctors or running in store monthly promotions raising awareness of particular service.

5. Measure – chose how you will measure performance; Script number increase, PPI payment increase, relevant department sales increase, etc.

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ADVERTORIAL

Professional Services training in diabetes launched by Roche Diagnostics Roche Diagnostics has sponsored the first ever Pharmacy Professional :LY]PJLZ 7YVJLZZ 77:7 *7+ ,K\JH[PVU WYVNYHT MVY KPHIL[LZ

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The PPSP was launched at the Australian College of Pharmacy Conference on 4 August 2012 in Brisbane. It provides a comprehensive overview of all the services that can be provided by pharmacists to patients with diabetes.

This includes Pharmacy Practice Incentives (PPIs), Medication Managementt Reviews (MMRs) and Diabetes MedsCheck. The PPSP recognises that delivery of the best experience and outcomes for a patient lies in a continuum um of care, not a series of discrete services delivered by pharmacy in isolation of each other. The program provides direction as to when each Professionall Service is appropriate as well as practical guides for executing each service. e.

Jenny Bergin, General Manager of the Australian College of Pharmacy, described the PPSP as “a practical guide to implementing diabetes professional services. There is a great deal of clinical information for pharmacists and the education has been developed for both community pharmacists implementing PPIs as well as accredited pharmacists performing MMRs. There is direction on the scope of diabetes screening and risk assessment tools, of disease state management programs and monitoring activities and of health promotion programs/activities which can be used to support the professional services. We believe that this is the first time that this approach has been taken by an industry sponsor and we are pleased that Roche Diagnostics is supporting this program.�

The PPSP is designed to help pharmacists identify a range of factors including: r >OH[ HYL [OL PUKP]PK\HS 770 449 HUK 4LKZ*OLJR WYVNYHTZ ^P[O YLZWLJ[ [V KPHIL[LZ HUK ^OH[ HYL [OL SPURZ IL[^LLU LHJO VM [OLZL ZLY]PJLZ& – For example, how do Health Promotion, Screening and Risk Assessment and Working With Others fit together for a pharmacist trying to provide the best service to people with diabetes in their pharmacy? – Where does a Disease State Management PPI finish and a Clinical Intervention start? And which are claimable for PPI payments? – When can I perform a Diabetes MedsCheck, an MMR or a Clinical Intervention, and how do they all interact? r How does a pharmacist implement each service and what [`WL VM HJ[P]P[PLZ JV\SK IL \UKLY[HRLU& r /V^ HUK ^OLU JHU 0 JSHPT MVY LHJO VM [OL ZLY]PJLZ& r > OH[ HYL [OL YLWVY[PUN HUK YLJVYKPUN YLX\PYLTLU[Z& r > OH[ HYL ZVTL L]PKLUJL IHZLK [VVSZ [V \ZL PU LHJO VM [OL KPMMLYLU[ ZLY]PJLZ& – For example, the Roche Diagnostics 360° View tool is clinically proven to improve diabetes control as part of a Structured Self Monitoring of Blood Glucose (SMBG) program. The PPSP highlights in which of the PPIs and indeed MMRs that the 360° View tool can be effectively used to help pharmacists support their patients with diabetes to better manage their medicines and condition.

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The PPSP program has been designed with Accredited Pharmacists in mind as well. Grant Martin, CEO of the Australian Association of Consultant Pharmacy (AACP), commented, “The AACP has been involved from the inception. It is exciting to see CPD education being developed with both community and accredited pharmacists in mind.“ +LIIPL 9PNI` Chair of the AACP believes “structured education programs using evidence-based tools will help pharmacists to deliver professional services with confidence. Improving a pharmacist’s knowledge and skills is the key to building a therapeutic relationship with general practitioners and consumers based on trust and respect. The 360° View tool can be discussed with the patient during the MMR interview, and provided to the GP for follow-up.�

Dr George Koumantakis, Manager, Scientific & Regulatory Affairs for Roche Diagnostics in Australia, said, “Roche is thrilled to be involved in the development of the Pharmacy Professional Services Process Education Program. Having an accurate blood glucose meter is important (and the Accu-Chek range has proven accuracy* in Australia), but we believe that the services, knowledge and understanding are just as vital. A company needs to provide assistance in supporting pharmacists and their patients with diabetes as well as continuing to develop the knowledge and understanding that underpins the products. For example, the 360° View tool is the only SMBG program in Australia that has been clinically studied and proven to help patients with diabetes improve their glycaemic control.�

The PPSP will consist of a summary document for pharmacists and a detailed manual that will provide not only the practical information relating to the Pharmacy Professional Services but also detailed clinical information about diabetes. ;OL 77:7 ^PSS IL Z\WWVY[LK I` HU VUSPUL *7+ LK\JH[PVU WYVNYHT PUP[PHSS` H]HPSHISL [OYV\NO [OL (\Z[YHSPHU *VSSLNL VM 7OHYTHJ` ^LIZP[L ^^^ HJW LK\ H\ ‹ MYLL MVY HSS TLTILYZ HZ ^LSS HZ [OL 9VJOL (JJ\ *OLR (JHKLT` ^^^ HJJ\ JOLRHJHKLT` JVT H\ The PPSP has been developed coordinated by Health Haus Communications with input from the AACP, the Australian College of Pharmacy and the QCPP division at the Guild with support from Roche Diagnostics.

The PPSP Education module has been accredited by the College for 8 Group 2 CPD credits and has been credentialed by the AACP for Accredited Pharmacist CPD.

Experience what’s possible. ^^^ HJJ\ JOLRHJHKLT` JVT H\ r (JJ\ *OLRŽ Enquiry Line: 1800 251 816 For people with diabetes. Use only as directed. Consult your healthcare professional for advice.

ACCU-CHEK and ACCU-CHEK 360° VIEW are trademarks of Roche. Š 2012 Roche.

All other trademarks are the property of their respective owners. *Data on ďŹ le.

Roche Diagnostics Australia Pty Ltd, 31 Victoria Avenue, Castle Hill, NSW 2154, ABN 29 003 001 205.

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SERVICE PROVISION

“Suggesting ‘service’ to pharmacy is much more than a mere fad and indeed should be a business imperative” for the long term given the economies of scale required to sustain this competitive strategy. Identify your unique strengths from a service provision perspective and research the current opportunities for additional profits from these. Are there any areas that need to be addressed to succeed such as improved marketing, technology or staff skills?

A key threat

that one of the key threats many pharmacies face is maintaining the status quo – not reviewing their business strategies.

It is clear that there are a number of strong arguments at all levels of the business environment in favour of incorporating professional services as an integral part of the pharmacy business model for the future. Suggesting ‘service’ to pharmacy is much more than a mere fad and indeed should be a business imperative. u

Undoubtedly one of the key threats facing pharmacy businesses A D _ I isMchange B WI resulting L N O V in _ 1an1overall . p d decrease f Pa ge 1 1 8 / 1 0 / 1 1 , 3 : 0 7 References are available on request. in traditional income streams. It could be suggested

PM

Fast forward your dispensing.

More space. More time. More profit.

Our new dispensary layout looks and feels very professional. Our Consis robot is a major contributor to achieving the high standards of professional patient care that we provide.”

Lisa Benton, co-owner, Orana Mall Dubbo, Pharmacy of the Year 2011 Australia

“After years of research I opted for Willach.

While we were designing our new pharmacy, Willach gave us outstanding support throughout the whole process. We love our Consis robot.“

Automate your dispensary today.

Come visit our new showroom in Richmond or one of our 90 reference sites in Australia.

Peter Buckley, owner, Peter Buckley Pharmacy, Pharmacy of the Year 2011 UK

Call or email us for a free dispensary design consultation.

03 9429 8222 info@willach.com.au www.willach.com.au

12 | IT’S YOUR BUSINESS | SEPTEMBER 2012

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GENERICS BOOSTING

G N I N GAI h t i w D N U O GR S C I R E N E G

Patent expiries ca n push margins to new heights, bu strategy in place t pharmacists nee . Kate Cowling d a profit discovers how to ensure a successf ul outcome.

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generics boosting

T

his year’s onslaught of patent expiries presents a rare opportunity for pharmacists to boost their profits while simultaneously nourishing customer relationships. With a host of cheaper substitutes due to flood the market, analysts have said pharmacists can regain ground they have lost over the last twenty years while setting themselves apart from key competitors.

But are the rumoured benefits really achievable and is there a strategic way pharmacists should approach it?

Yes and yes, according to Nick Logan, owner of Nick Logan Pharmacist Advice. While there are certainly lucrative rewards up for the taking, the need to balance the promotion of generics with the needs of the patient is a delicate operation.

BUILDING TRUST Gaining an advantage through substitution should not be approached as an overnight operation, Mr Logan stressed. Rather, the best results will come to those who have already built a strong foundation of trust with their customers.

“Professional interaction is a key,” he said. “If the customer feels comfortable with the pharmacist, trusts them and understands they’re offering quality care, they’re far more likely to take on a generic recommendation.”

Mr Logan said at his pharmacies, the pharmacist sits at eye-level with the customer and goes through their health requirements step-by-step, which makes the customer feel both valued and listened to.

He said the distance created by the physical set up of some pharmacies creates a barrier to that essential trust.

“Pharmacies should not be vending machines.

People need that face-to-face contact and if they don’t get it, it makes them reticent to take on advice.”

MUTUALLY BENEFIcial For years pharmacists have been approaching generic substitution “backwards”, Mr Logan believes. They have been wrongly assuming they are doing their customer some sort of disservice by offering the substitute “even though survey results show the vast, vast majority (70-80 per cent) want to be asked.”

But this inverted process is finally starting to change, he said. “I think pharmacists are at last starting to approach the topic with positivity and that makes a big difference to the outcome.”

Mr Logan suggests adopting a “nothing to lose” attitude, bringing up the topic with confidence and expecting the customer to say yes.

“If we’ve made the decision to offer the substitute, we have to realise that we’re both benefitting equally – the customer with a product that’s cheaper and contains the same properties, and the pharmacist can prop up their margins.”

ADOPTING A WIDER FOCUS While there’s little doubt that Atorvastatin is a potential gold mine for pharmacists, they should be careful not to overlook other emerging generic molecules, according to Matt Marsh, Pharmacy Alliance National Procurement Manager.

“There are six other molecules that have come off patent, which offer just as much opportunity, but are being neglected. That’s lost money every single month,” he said.

While the substitution rate on atorvastatin is around 70 per cent, rates for other molecules hover around 30 per cent, and this is “simply missed profitability”.

Mr Marsh suggested coming up with an “allencompassing” promotional strategy that gives equal weight to each of off-patent molecules.

His tips include directly approaching the pros and

“If the customer feels comfortable with the pharmacist, trusts them and understands they’re offering quality care, they’re far more likely to take on a generic recommendation.”

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generics boosting

Tips for success Do 4

1. Initiate the discussion early. Leaving the question of substitutes until later in the dispensing stage puts undue pressure on you and could hold up other customers.

2. Keep your staff up-to-date on generics changes. That means telling all staff, not just pharmacists, how they can direct customers towards generic solutions, Nick Logan Pharmacy Advice’s Nick Logan said.

3. Replenish stock regularly. Low or no stock equals missed opportunities.

4. Have a wholesaler negotiation strategy in place. If you plan to “play the field”, keep regular contact with wholesalers and know what they’re offering for your business.

5. Nourish the customer-pharmacist relationship. Spending five minutes with the customer discussing their health concerns could have a multiplier effect on your business returns.

Don’t 6 1. Forget other molecules. “Atorvastatin isn’t the only off-patent molecule, but that’s easy to forget,” Matt Marsh said.

2. Expect profits to roll in overnight. It takes preparation and some time, according to Nick Logan.

3. Feel guilty about broaching the topic. The vast majority of customers want the generic, research shows.

4. Heavily overstock. If you’ve still got six months worth of stock when the manufacturers announce price cuts, you could face a significant disadvantage.

5. Neglect other parts of your business. It’s easy to direct all your energy into substitutes and fall behind on other areas, like front of shop.

consPof focus N the 2 7 appropriate 1 8 _ E d substitution u _ H P _ I when Y B .the p customer df P ahands g e over 2 2 3 / not 0 8solely / 1 2 , on 3 :atorvastatin, 4 9 P Mhe said. their script and making the time to answer questions. Displays should “Customers should be reminded that the (generic molecule) is a

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YOU NEED A PLAN, BUT WHO DO YOU TURN TO?

bioequivalent, and not an inferior product,” he said. “After hearing it a few times, they might start to ask for the generic”.

SCORING THE BEST DEAL Whether to stick with one wholesaler or play the field is a business owner’s personal choice, Mr Logan said, but owners and managers should realise how time-consuming the negotiation process can be and delegate the appropriate amount of time.

Mr Logan said he would rather do business with one wholesaler than hunt for the best price among the competing offerings and believes he’s rewarded for his loyalty.

“Also, I don’t have time to be constantly negotiating new deals and I don’t think many pharmacists do.”

In terms of how to benefit most from an exclusive partnership, Mr Logan recommended semi-regular catch ups with the company of choice and regular stock re-evaluations.

“One of the ways I think pharmacists are going to miss out on the full benefit of patent expiries is by underestimating their stock requirements,” he said. “We have to be ready for the profits. Above all, that means preparation and having enough stock.”

Meanwhile, pharmacy business expert, Bruce Annabel, previously told Pharmacy

News it was essential to get the best deal possible on generics, given the number of molecules off patient this year and next.

“In terms of transitioning, pharmacists will need to figure out where they’re going to get the best deal,” he said.

“Pfizer is actively in the market [with its Lipitor and Atorvastatin Pfizer brands], as is Ranbaxy, making offers.

“But pharmacists must first of all consult with their mainline suppliers before they commit to going with Pfizer or Ranbaxy, just so they know what the options are, particularly with pre-buying.

“The issues with pre-buying are, in a positive sense, it can help trick price disclosure a bit and push some of the cuts to the following year, but if you commit, particularly to a longterm deal, you have to find the money and you have to find the storage space”.

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Hit list Key molecules off patent in 2012: Atorvastatin (Lipitor).

Venlafaxine (Effexor).

Olanzapine (Zyprexa).

Quetiapine (Seroquel).

Anastrozole (Arimidex).

Letrozole (Femara).

Lamivudine (Zeffix). u

CFP®, CERTIFIED FINANCIAL PLANNER® and CFP Logo® are certification marks owned outside the U.S. by Financial Planning Standards Board Ltd. Financial Planning Association of Australia Limited is the marks licensing authority for the CFP marks in Australia, through agreement with FPSB.

IT’S YOUR BUSINESS | SEPTEMBER 2012 | 17

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SUPERANNUATION

The

DO’S and DONT’S of self-managed super funds Recent share market volatility has negatively affected many people’s superannuation savings.Taking more control of your financial future may be just what the doctor ordered, says Peter Quinn of Quinn Financial Planning

S

elf-Managed Super Funds (SMSFs) may seem complicated initially, particularly if you are not aware of current legislation. Here is your 10-step-guide to help you manage your own SMSF.

THE DO’S… 1. PREPARE AN INVESTMENT STRATEGY Before you start making investments you need to prepare a plan to succeed. A written investment strategy requires that the fund’s investment is made for the sole purpose of generating retirement benefits for the member(s) of the fund.

2. SEEK PROFESSIONAL ASSISTANCE AND ADVICE If you establish an SMSF, or have already established a SMSF, you are in charge, you make the investment decisions and you are responsible for complying A D _ I Y B P H A 1 S Ewith P _ 1the 2 law. . p dAsf parts P aofgthe e law 1 are2 quite 2 / 0compli8 / 1 2 , cated, it is important to seek professional advice

with respect to the running of your fund to ensure it remains compliant.

3. REVIEW YOUR CONTRIBUTION STRATEGY If you are an employee, 9 per cent of your salary is paid into your super. However, you may wish to consider salary sacrificing more than 9 per cent to boost your super (and investment potential). The maximum concessional contribution this year is $25,000.

After-tax monies that you transfer into a superannuation fund are not tax deductible.Yet, the upside is that your super fund will not pay 15 per cent tax on this income. You can generally contribute $150,000 per annum, and in some circumstances, you can pre-pay two years in advance to increase this non-concessional contribution to $450,000.

4. CONSIDER GEARING WITHIN YOUR SMSF In September 2007, the Government made gearing possible SMSFs. Your SMSF can borrow within 9 : 5 6for A M your superannuation fund to purchase an investment

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IT’S YOUR BUSINESS | SEPTEMBER 2012 | 19

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SUPERANNUATION

property. That is, you no longer need to have sufficient cash in your superannuation fund to purchase a property outright.

The past four years has seen a sharp decline in the tax deductible amount you can contribute to your SMSF . This makes it very worthwhile exploring strategies to grow your super other than simply making minimum contributions.

If you own a small business you are probably carrying the significant and increasing burden of rent. A gearing strategy in super is worth considering such as purchasing business, commercial or residential property.

Your business’s rent helps quickly build the equity in your own SMSF. The benefits of borrowing in super are three-fold: 1. Low income tax environment: net rental income is taxed at a maximum rate of 15 per cent in an accumulating super fund, and nil tax in a super pension fund, compared to up to 46.5 per cent in your personal name; 2. Tax effective retirement: if you are 60 years of age and over there is nil tax applicable to superannuation withdrawals or pension earnings; and 3. Capital Gains Tax (CGT) savings: the maximum rate of tax applied to capital gains is 15 per cent if the property has been held for less than one year, 10 per cent if held for longer, and potentially nil if the property is sold when your superannuation is paying a pension.

5. TAKE RESPONSIBILITY FOR YOUR SUPER The Australian Taxation Office (ATO) takes a very dim view of anyone failing to make a genuine effort to comply with legislation. The ATO can tax the assets of your superannuation fund at the rate of 45 per cent and will also prosecute anyone failing to obey the law.

If the ATO considers that the assets of your fund are at risk, it can take action to protect them. This may include disqualifying you as a trustee, removing you as a trustee, or freezing your fund’s assets.

6 RENEW YOUR TRUST DEED How up-to-date is your fund’s trust deed? There have been numerous changes to the Superannuation Industry (Supervision) Act (SIS

20 | IT’S YOUR BUSINESS | SEPTEMBER 2012

Act). Depending on when your superannuation trust deed was established, there is a very strong possibility that it no longer complies with current legislation.

For example, changes after 2007 now permit gearing in certain circumstances. If your deed was established prior to SIS Act changes in 2007, it may not allow for gearing within your superannuation fund.

Other deeds do not allow specific areas such as the payment of pensions or reversionary pensions (which start after you pass away), binding death benefit nominations, or do not set out how your benefits can be paid.

If you are unsure about how up-to-date your trust deed is, consider having an expert review it now to ensure that it allows you to implement the strategies you wish to achieve.

7. REVIEW YOUR DEATH BENEFIT NOMINATION Many people are surprised that their will is ineffective when disposing of their superannuation benefits on their death.

The consequences can be dramatic as was seen in the legal case of Katz v Grossman [2005] NSWSC 934. In Katz’s case, a member of the fund died leaving behind two children – a daughter who was a trustee of the family SMSF, and a non-member son.

The father left $1 million in superannuation benefits with a direction in his will that all of his superannuation assets were to be equally split between his two children.

On his death, the remaining trustee (his daughter) did not take into account his nomination and paid all of the deceased member’s benefits to herself.

The NSW Supreme Court held that she was entitled to take this action under the fund’s trust deed and the will was ineffective.

8. CONSIDER LIFE INSURANCE WITHIN YOUR SMSF Whether you’re young and just starting your career, a single parent, approaching mid-life or looking forward to your retirement, if you unexpectedly have an accident or illness that prevents you from earning your income, how will you pay your bills and expenses? This is when having life insurance cover is very reassuring and provides peace of mind.

Taking out life and total permanent disability (TPD) insurance through a superannuation fund is an attractive and cost-effective option.

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SUPERANNUATION

The main benefit of life insurance through a super fund is the premiums paid are deducted from your super contribution, which means you are paying for your cover before tax - a far more affordable and convenient option than a stand-alone policy.

The DONT’s…

9. Don’t provide financial assistance to SMSF members or their relatives

10. Don’t acquire residential property from a related party Superannuation funds are prohibited from acquiring assets from a related party of the superannuation fund, except in the following (limited) circumstances: 1. The acquisition of the asset acquired from the related party would not result in more than 5 per cent of the assets of the superannuation fund being invested in related parties; 2. The asset is a listed security, for example shares, units or bonds listed on an approved stock exchange; 3. The asset is “business real property”. Business real property is generally land and buildings used wholly and exclusively by a business for business purposes. u

As a SMSF trustee, you are prohibited from lending money or providing financial assistance to a member, or a relative of a member, regardless of whether you are charging commercial interest rates on that loan.

Lending money to your son or daughter to Contact Peter Quinn at www.quinnfinancialplanning.com.au. purchase a property at commercial interest rates may The information in this document does not take into account your A D _ I Y B Q U I M A Rappear _ 1 2 .a sound p d f investment P a g e decision 1 1 3for / 0the 2 fund, / 1 2 but , 9 :personal 2 3 objectives.

AM it is actually in breach of the SIS Act and regulations. It is recommended that you seek assistance from a financial adviser.

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The Superannuation experts at independently owned Quinn Financial Planning have the tools and expertise to give you: Greater flexibility and control of your Superannuation.

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Manage your fund’s paperwork, tax returns, members’ contribution statements, audits and other regulatory returns.

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We can get you on your way with a SMSF and you will quickly benefit from taking control of your superannuation savings.

Peter Quinn, Director, Quinn Financial Planning, Chartered Accountant, Certified Financial Planner, SMSF Specialist Advisor.

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Consider the Possibilities:

POS SYSTEMS

Get the most out of your POS system by scanning through all of the available options, writes Nick O’Donoghue.

IT’S YOUR BUSINESS | SEPTEMBER 2012 | 23

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POS SYSTEMS

P

oint of sale systems open a wealth of in-store data and provide valuable stock management information.

It is essential to find the right point of sale (PoS) system to meet your needs, David Wilson, owner of David Wilson Compounding Chemists in Sydney, believes.

“I don’t think you can run a retail business efficiently and get good data without an efficient PoS system,” he said.

“It’s almost as important as having a key to open the front door.”

Integration First and foremost it is essential to find a new system or upgrade that is compatible with your existing software, Mr Wilson said.

“A PoS system should integrate with your dispensing program so that when you dispense a prescription it picks up the cost directly, so you get the true cost.

Otherwise, your gross profits are going to be out,” he said.

PoS systems also need to support store promotions and loyalty schemes in your pharmacy.

“There’s quite a few PoS systems out there, but once you say ‘it’s got to integrate fully with the dispensary’, that wipes out some of them. In our case, we have quite a large rewards card scheme, so it’s got to be able to deal with rewards cards, and that wipes out others.

“When you start putting those key factors in, you quickly get down to two or three systems.”

Problems with PoS Catherine Bronger, Chemist Works managing partner, said PoS systems rarely link-up seamlessly with dispensing systems.

“Personally, PoS systems that I’ve seen fail in their integration,” she said.

Ms Bronger added that PoS systems also need to be able to support other software monitoring professional services that are being carried out in the pharmacy alongside the traditional stock management function.

“As the world of pharmacy changes, the dispensing systems along with the PoS systems need to look into areas such as online sales, script management, more sophisticated pricing systems, data collection of government incentive programs e.g. CI, Medchecks, add on sales etc...”

Data One of the key benefits of a PoS system is the data it

24 | IT’S YOUR BUSINESS | SEPTEMBER 2012

collects, which gives you the information you need to make decisions about your store.

“You can see what products are selling, what products aren’t selling, what departments are doing well, what departments aren’t,” Mr Wilson said.

“You can get exceptional reports .You might realise you’re selling certain products at a loss . The PoS system should be able to point out those problem lines, so you can just ditch them.

“It helps you decide whether you would like to put a new product into the pharmacy, because if you’ve got a department that’s not trading well for whatever reason there’s not much point in putting new lines in, unless your original inventory was so far out of date and that’s why you weren’t getting sales.”

Service Ensuring you get good after sales support, whether with tailor made software to cater for specific needs, or emergency back-up is an important factor when selecting a PoS system.

“You need a good back office facility for software support and software changes,” Mr Wilson said.

“While there’s a lot of things in common across stores, each owner likes something done a bit differently, and if you can get enhancements written [to suit your needs] fairly quickly that’s a big plus.

“I recently found out one of the problems we’ve got with our system. We’ve got a rewards card, but it rewards on items that are on special, which is crazy, because you might only be making 10 per cent and you’re giving away five per cent.

“They’ve been asked to fix it, but it won’t be fixed until next year, and we’re coming up to our busiest six months of the year and we’re giving away profit on line that we can’t afford to be giving it away on.”

Highlighting the need for emergency support, Mr Wilson said that he opens his stores on Christmas Day, but very few PoS systems providers offer cover on the day.

If the system failed it could put him out of business until his vendor is available to help.

“That’s a busy day for us. If your software’s down you’re out of business,” he said.

Ms Bronger agreed that support services are an integral part of the package pharmacy owners need to consider when signing up to a new PoS. “Support service and staff training is the most important part of choosing a PoS supplier,” she said.

“There’s no point spending a fortune on the system if no one’s there to tell you how to drive it.” u

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POS SYSTEMS

Check-list for buying a new PoS 3 Does it have good software, and is it easy to use?

3 Is it cheaper or better than the current system?

3 Does it come with good back-up support services?

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IT’S YOUR BUSINESS | SEPTEMBER 2012 | 25

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POS SYSTEMS

More than just a stock management system

T

raditionally, pharmacy point of sale systems have been used for stock management and calculating GST, but they offer much more.

Nowadays, point of sale (PoS) systems can assist pharmacy owners and managers to keep track of stock across multiple stores and account for online sales, Chirag Savaliya, Mountaintop Systems national business development manager explains.

“The features on PoS systems have been expanded over the years,” he said.

“It is important for pharmacists to understand your PoS system can go beyond calculating GST and stock management.

“The smarter ones are driving PoS systems so their entire business is unified from the PoS system.”

Cutting edge With a new PoS system, pharmacy owners and managers should look for one that is easy to use with state-of-the-art technology.

“If you’re thinking of changing, or buying a PoS system for the first time, ease of use is a key consideration.” Mr Savaliya said.

“Secondly, you want to ensure that the system you’re buying is at the cutting edge, or along the way the industry is trending, not some old dos system, or something that’s hard on the eye.”

Online shopping Mr Savaliya believes pharmacists should look to future proof their investment, “A PoS system has to be compatible with e-commerce solutions,” he said.

“If your PoS system isn’t compatible with online sales it might be okay now, but two years down the track, if you want to compete with Chemist Warehouse and those sorts of pharmacies, you need to have a system that allows for online technologies, because people are buying things online.”

Support services Ensuring immediate access to IT support in case of an emergency is an essential when trying to identify the best PoS system for your pharmacy.

“In reality, you want support there and then. The only reason you

made the phone call is because you’re stuck,” he said.

“If you had a problem with a credit card you wouldn’t want to be told you have to wait. It’s the same with a PoS system, but some providers aren’t providing instant support, and people aren’t aware of this.”

“When they find out, they are changing systems.”

Service fees The cost of a PoS system does not end when you hand over the cheque. There are ongoing service fees to consider, Mr Savaliya says.

“Before you make the switch it’s important to look at the market and see what the support fees are for the software to support the PoS system you intend to buy.”

“Make sure the fees are according to the market, not what somebody dictates,” he said.

Why are you buying?

Before going to the market ask yourself if you are using your existing system to maximum effect.

“You’ve got to ask yourself, ‘do I really need to change software, or do I need to learn how to use the software I have better?” Mr Savaliya said.

“Ongoing training on the software is a must, to save some money and try to use the system efficiently.” u

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RECRUITING

Making the The success of any business largely depends on the skills and quality of its staff, writes Sheree Mutton.

R

ecruiting the wrong person for the job may result in loss of time, money and customers. Pharmacy owners and managers must recognise that recruiting the right person for the job is a process that requires effective planning.

The recruitment process can be undertaken in two ways: with or without a recruitment agency. This will depend on the nature of the business, available resources such as time and money, and if the employer has experience in hiring staff . An employer choosing to go through a recruitment agency should select a reputable company with expertise and experience in the pharmacy industry.

Pharmacy owners should research and look for positive testimonials. If the owner decides to recruit staff directly, there are some guidelines to follow.

ESTABLISH THE JOB DESCRIPTION Human resources manager, Lisa Martin, of Pharmacy Alliance, says the best place to start is to review the requirements of the business: “It is automatic to replace someone who has left the position, but not always necessary,” she says. “You need to ask whether the duties can be performed by anyone else in the business, or is a complete replacement required?”

The next step is to review the position description. Has the position changed in any way? Review the expectations of the role and what experience or qualifications are required to perform the role, before you start the recruitment process.”

EMPLOYEE WISH LIST Making a wish list of attributes you want in a successful candidate will help identify the right person for the job.

The list could include formal and educational qualifications, skills, experience and personality traits. For example, pharmacies require employees with good communication and interpersonal skills, strong organisational skills, a mature attitude and a caring nature because most of the role involves dealing directly with customers.

Ms Martin says what an employer looks for should depend on the values and qualities of your business: “I think the main area of focus for most pharmacies now is being more community focused and competitive through service, rather than price”.

Qualities such as exposure to community and customer service-based roles can be quite attractive, as well as people’s passions, she says. “A lot of people are unsure about including their hobbies in their CV’s, but I find this a little insight as to who the person is. I look more to attitudes and overall passion and motivation”.

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RECRUITING

right choice CREATING THE JOB AD The next phase of the recruitment process is to prepare a job advertisement. Pharmacy roles are often advertised in the local papers, trade magazines and on industry websites.

Choosing the most appropriate outlet(s) for your business will result in maximum readership by the best audience. Employers need to explain the role clearly in the advertisement. Include the responsibilities of the successful candidate and your business goals for the future. The advertisement should be well-constructed and well-presented because you want your business to attract the best candidates.

Georgia Bolden-Strestik, the director at Pharmacy Links Australia says some media work better than others for different roles. “Print media is not so useful for recruiting pharmacists. Often the turn-around between placing an advertisement and publishing is too slow for employer’s needs,” she says. “For pharmacy assistants we find that Seek is not so effective and we do often resort to print media (such as local or state newspapers) to get a satisfactory pool of applicants.”

Finally, ensure candidates know where to send their applicaton. Failing to state this in the advertisement will result in lost applications.

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RECRUITING

TOP TIPS FOR EFFECTIVE RECRUITMENT • Always have a clear description of the job and the person you are looking for.

• Be prepared for interviews by developing a concise set of questions and highlighting anything on resumes you wish to ask candidates about.

• Always assess your resources including time and money before choosing a recruitment agency or deciding to recruit yourself.

• Try different forms of advertising. Don’t just stick to one website or one newspaper.

• Make candidates feel comfortable in the interview and avoid any questions involving their personal life, relationship status or age that may be discriminatory.

• Contact at least two referees before offering the job to a candidate.

• Remember that the Quality Care Pharmacy Program (QCPP) requires the employer to have a formal offer of employment and induction process.

Interviewing candidates

Offering the job

The number one rule for interviewing is preparation.

After shortlisting candidates, compile a list of questions you wish to ask.

Design the questions to gain as much information as possible about their personality, experience and skills.

Posing a scenario to the candidate and asking how they would respond is a great way to establish how they would fit in with your business and workplace culture.

“Interviews should be a comfortable environment if you want to get an honest reflection of the interviewee,” Ms Martin says. “Try your best to make them feel comfortable, as you want them to be doing most of the talking.”

Have an evaluation sheet to compare each candidate and be prepared to answer questions.

Once you have finished the interviews, assess your notes and evaluation sheet. Employers may need the opinions of other staff members or require a second or third interview if they are unsure who to hire.

Conduct reference checks with the candidates’ approval. “Make sure you have at least two people who you can call that the candidate directly reported to, ideally from different employers,” Ms Martin says.

When offering the job, it’s a good idea to have a formal agreement in writing, outlining the salary, benefits, conditions and role. Both the new employee and employer should sign and date the agreement and receive a copy to avoid misunderstandings.

“So many people are asked to fill jobs with no formal contract or job description. This is a recipe

“So many people are asked to fill jobs with no formal contract or job description. This is a recipe for disaster.”

Georgia Bolden-Strestik, Pharmacy Links Australia

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RECRUITING

for disaster. If there are points that need clarification or negotiation, this needs to be done between the employer and the candidate before any paperwork is signed,” Ms Bolden-Strestik says.

Employers should also notify unsuccessful candidates via email, phone or a letter.

Inducting a new employee Having a formal induction process will enable an employee to feel comfortable in their new work environment.

A D _ I Y B P H A 5 S E P Introduce _ 1 2 . p the d f new P employee a g e 5 to other 2 2 / staff 0 8 and / 1 2 ,

make sure the new employee is familiar with legal obligations such as workplace safety, awards, employee terminations, superannuation and withholding taxes (PAYG).

Conclusion Pharmacies rely on staff for productivity, so recruiting the best employees for the business is crucial to the success of the pharmacy. Employers should follow a step-by-step process to guarantee everyone is treated equally, legal obligations are met and the best candidate for offer is selected. u 9 :the 5 job 6 on AM

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THE NEED FOR DATA

r e w s n a a e t h T the da n i is

The modern pharmacy, facing increasing pressure from retail and other pharmacy competitors, is in desperate need of good quality data. But what do you need? And how do you get it?

Chris Brooker asks.

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THE NEED FOR DATA

G

iven the increasing levels of competition that community pharmacy is facing, the need for accurate, comprehensive and comprehensible data is essential.

In fact, access to good quality data is now vital to operating successfully in a retail environment, according to Matthew Galetto, managing director of leading clinical market research company, AsteRx.

Gaining access “To be really useful, data should be available on a day-to-day basis so you can adequately respond to changes,” Mr Galetto said. “What was happening yesterday? What was selling? Which of my pharmacists are substituting effectively? What companion sales are happening?

And what isn’t? Is basket size increasing?”

“These are the questions you should be asking of your data. And really, the answers can be obtained without a great deal of trouble,” he said.

“Your retail competitors are able to get amazing levels of data on every aspect of their business. In the current environment, you too need this level of knowledge so you can make changes to improve your business structures and operations.”

Making it meaningful While there are reams of data available, how does a busy pharmacist access what they need to know? Mr Galetto says there are options available, but you need to seek out expertise.

“This level of data complexity is more important than ever, but most pharmacies have never really been able to extrapolate and analyse this information in a meaningful way.”

He says information in dispensary and point-of-sale systems is often not user friendly and pharmacy owners should seek data providers who can supply information that is clean, collated, contextual and meaningful.

“I can’t emphasise how important it is to have this information,” he said. “You should be able to access data on things like which GP clinics your scripts are coming from.”

His company, AsteRx has been collating and providing data to Australian GPs since 2003, and is currently the leading GP AD _ I YBPHA4 SEP_ 1 2 . p d f Pa ge 4 2 2 data provider.

Top tips: • Your data reports should regularly cover all the key business topics – key lines, basket sizes, stock levels, and answer 90 per cent of what you want information on.

• Ensure that you can understand and interpret this information.

• Start with simple, basic things. Reports can be adjusted to your requirements later on. You should initially aim for a solid overview of your pharmacy, and then try to drill deeper into the data once you’ve got that basic understanding.

• Avoid using incomplete or corrupt data.

They believe their offering is even more useful to pharmacists, a feeling that was backed by strong interest recorded at pharmacy conferences this year.

Their data is collected for dispensary software across the country, from most leading software systems.

The company website outlines how the information is collated: ‘AsteRx uses the latest in web technologies and data aggregation methodologies to supply critical data in a timely manner, using modern online reporting tools that allow for information to be disseminated and accessed on the PC, iPad/Tablet or phone where it can be actioned quickly’.

DAILY REPORTING The data is extracted at the end of each day, and then returned to the pharmacy in two different formats (or whichever the user chooses): 1/ A PDF report providing static information on key statistics, including gross margins, total substitutions, when the store was busy, key lines, low stock etc.

2/ An online dashboard that allows a logged-in user to drill / deeper 0 8 / into 1 2 ,the data.

9 : 5 6 AM

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THE NEED FOR DATA DATA DOWNLOAD: Examples of AsteRx data reports.

“This allows the user to access more granular detail, such as customers’ postcodes and which GPs scripts’ came from companion sales,” he said.

QUALITY AND SECURITY “This level will be bringing you up to the quality of the data used by most other retail businesses,” he concluded. “Excel files and one dimensional tables just don’t cut it in this era.”

AsteRx provide a summary of the data, assistance to new users and offer a help desk and support line to

34 | IT’S YOUR BUSINESS | SEPTEMBER 2012

users. Owners of multiple pharmacies can access data from each of their stores or across all.

AsteRx data remains with the owner, the company emphases. “It is not given to any third parties without your express permission. AsteRx uses the latest technologies to ensure your data remains secure”.

Pharmacists can now access AsteRx data and reports, courtesy of Pharmacy News. ◆ Any pharmacists interested in accessing the AsteRx data reports are advised to visit www.asterx.com, call 02 9968 4156 or email: support@asterx.com.

AD_IYBLOCAUG_12.pdf 101109_LocumCo_NSWG.pdf

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