3 Ways to Boost Veterinary Pharmacy Revenue

Veterinary practices are unique in that they can sell medications directly to their clients, which provides an important revenue stream for the business. However, retail stores and online pharmacies have stolen a lot of market share, especially during the pandemic. An article in Veterinary Practice News claims that one “online pet retailer added more than five million customers during 2020 and net sales grew 45 percent.”

These online retailers not only pose a threat to veterinary practices’ revenue, but they also create challenges in regulating quality animal healthcare standards. Most U.S. states require veterinarians to issue prescriptions to clients upon request, allowing the client to fill the prescription at the pharmacy of their choosing. Clients who used to depend on the vet for prescriptions now have more freedom, but veterinarians continue experiencing lost revenue from what used to be a high-value revenue stream with large margins.

So how can veterinary clinics regain market share in pet pharmaceuticals and ensure the best quality of care for patients? Vet hospitals and clinics have to adapt to retain pharmacy revenue, but they can still be competitive, and in the process, increase client loyalty.

Explore how these three approaches can help your practice:

1. Elevate Your Veterinary Pharmacy

Use the 80/20 rule to identify in-demand commercial and compounded drugs and keep those in stock. Consider limiting the pharmaceuticals you carry to those that serve your clientele the best, and most often. Carrying multiple versions of similar items is expensive, especially flea and tick preventives which are more of a commodity. Stand out from the mass retailers and refocus your offerings on the highest quality, in-demand medications.

When stocking medications, pay close attention to shelf life. When ordering compounded medications, keep in mind that 503B manufactured products have a shelf-life range of months to years, without compromising quality. Medications from 503A pharmacies with beyond-use dates (BUDs) have small usage windows – as little as 12 hours for sterile products – which can create a lot of waste. Stocking niche medications is another way to differentiate and increase revenue.

2. Take Control with Online Ordering

Today’s pet owners value convenience and expect online ordering, automatic refill reminders, and home delivery. Relying on clients to remember prescription refills, without calling the clinic in a panic, is not a sound business model. Avoid the hassle and provide the service your clients expect by setting up an online ordering system. Use the system to send reminders about required lab tests and blood work – this simple activity can remove barriers to prescription refills.