Running an independent pharmacy takes more than filling prescriptions. Between reimbursement pressures, rising operating costs, inventory expenses and the time required to manage daily operations, protecting your bottom line is an ongoing challenge. The right purchasing strategy, business tools and support system can help you identify opportunities to improve profitability and build a stronger business. 

Optimize Your Pharmacy Purchasing Strategy
Drug acquisition costs are one of the most important factors you can influence. But the lowest invoice price doesn't always mean the best overall deal. Brand and generic pricing, rebates, purchasing requirements and payment terms all affect your pharmacy's true cost of inventory. 

A pharmacy buying group or group purchasing organization (GPO) can leverage the combined purchasing power of independent pharmacies to negotiate competitive pricing and supplier agreements. AAP takes that a step further by offering multiple options of our primary vendor agreement (PVA), allowing you to evaluate purchasing strategies based on your individual needs. AAP's Pharmacy Business Advisors can help you assess your current arrangement and identify opportunities to improve your purchasing performance. 

Use Pharmacy Analytics to Uncover Hidden Profit Opportunities 
Are you dispensing prescriptions at a loss? Missing profitable refills? Overlooking reimbursement opportunities? 

Without the right information, these issues can be difficult to identify. AAP's ProfitAmp business analytics program helps you turn pharmacy data into actionable insights. Reports can highlight prescriptions sold at a loss, missed refill opportunities and reimbursement differences by plan, helping you make more informed business decisions. 

Rather than relying on guesswork, you can use these insights to identify areas that deserve attention and take action where opportunities exist. 

Improve Cash Flow With Smarter Inventory Management
Your inventory ties up cash that could otherwise support payroll, daily expenses or business growth. Ordering too much can leave money sitting on shelves, while ordering too little can create disruptions for your team and patients. 

AAP's SmartSync program uses your pharmacy's purchasing and dispensing data to generate a suggested weekly order through API Warehouse. This helps simplify ordering and align purchasing decisions more closely with your store's needs. You can also utilize API Warehouse as a secondary purchasing option for brand and generic Rx.  

And programs like DropShip Hub and Preferred Partners give you competitive pricing on OTC and front-end merchandise. 

Increase Value Beyond Drug Pricing
Successful pharmacy buying groups offer more than purchasing discounts. Vendor partnerships, operational resources, merchandising tools, business education and personalized support can help you manage expenses and identify additional growth opportunities. 

As an AAP Member, you have access to resources such as free Retail Plan-O-Grams, the AAP Vaccine Program and business guidance from pharmacy industry experts. These resources can support better inventory decisions, front-end sales, and operational efficiency. 

AAP's cooperative structure also gives you a stake in the organization. When the Board of Directors declares patronage dividends, eligible profits can be returned to you, providing another potential benefit of cooperative ownership. 

Leverage AAP Membership Benefits
Improving independent pharmacy profitability rarely comes down to one decision. It requires looking at purchasing costs, reimbursement, inventory, workflow and opportunities to grow revenue together. 

AAP combines cooperative buying power, flexible purchasing options, business analytics and practical operational resources to help you make informed decisions about your business. Your pharmacy is unique.

Your purchasing strategy and support system should reflect that. 

Build a More Profitable Pharmacy With AAP
Ready to explore opportunities for your pharmacy? Request a free AAP benefits assessment to review your current setup and discover which programs and resources may help you strengthen your bottom line.