![How to plan and track the budget of your drugstore [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-1_ddff41d2-2855-4e35-952a-f7ac639cdb01.png?v=1715856370&width=1100)
If you don’t plan and track your drugstore budget properly, you're setting yourself up for failure.
When we developed our strategy pack for drugstore owners, we saw a lot of drugstore owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your drugstore's finances around and set you on the path to success!
Get the budget tracker tailored for drugstores
Most drugstore owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for drugstores
Here is an example of a (very) detailed budget for a drugstore, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for drugstore space | $4,000 | $48,000 |
| Electricity | Power consumption for lighting and refrigeration | $600 | $7,200 |
| Water | Water usage | $100 | $1,200 |
| Internet & Phone | Internet service and business phone | $150 | $1,800 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Pharmacist | 1 | $6,000 | $6,000 | $72,000 |
| Pharmacy Technician | 2 | $3,000 | $6,000 | $72,000 |
| Cashiers | 3 | $2,000 | $6,000 | $72,000 |
| Store Manager | 1 | $4,000 | $4,000 | $48,000 |
| Stock Clerk | 2 | $2,500 | $5,000 | $60,000 |
3. Inventory Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Pharmaceuticals | Prescription and over-the-counter medications | $20,000 | $240,000 |
| Health & Wellness Products | Vitamins, supplements, etc. | $5,000 | $60,000 |
| Personal Care Items | Shampoos, soaps, etc. | $3,000 | $36,000 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $200 | $2,400 |
| Office Supplies | Stationery, printer ink, etc. | $100 | $1,200 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Print Advertising | Flyers, posters, newspaper ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Special events and promotions | $200 | $2,400 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of store equipment | $300 | $3,600 |
| Uniforms | Staff uniforms | $150 | $1,800 |
| Licenses & Permits | Pharmacy licenses, business permits, etc. | $100 | $1,200 |
| POS System | Point of Sale software and hardware | $200 | $2,400 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some drugstores make 5x more profit than you!
We have studied the strategies of the best drugstores in the world. Replicate them now!
What are the biggest expenses for a drugstore?
Be careful with these pitfalls. Here are five major costs every drugstore owner needs to consider, along with some tips on how to handle them wisely.
- Inventory costsThese can take up a significant portion of your budget. You're dealing with a wide range of products, including perishables like medications and health supplements, which can expire. Prices can fluctuate based on demand, supply chain issues, and regulatory changes. To keep these costs in check, focus on inventory management, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by overstocking or opting for high-end products that don’t add enough value.
- The staff at your drugstoreYour staff is your backbone, but paying for their wages, benefits, and training can be expensive. This cost is always high because you need a certain number of employees to provide good service and keep things running smoothly. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor service.
- Rent and utilities of your drugstorePrime locations come with high rent, but they can attract more customers. Utilities like electricity, heating, and water are essential but add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient appliances and lighting. Overspending often happens when you choose a location that's too big or too fancy for your needs.
- MarketingYou need to get the word out about your drugstore, but advertising can be pricey, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we give in our pack. Overspending can happen if you invest in flashy campaigns without a clear return on investment.
- Store equipment and maintenance costsThis includes everything from shelving units to refrigeration systems. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your drugstore?
Here are practical tips to help you, as a drugstore owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Inventory Costs | Partner with reputable suppliers for bulk purchasing discounts and keep track of seasonal demand to avoid overstocking. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient HVAC systems to reduce energy consumption. |
| Marketing | Run social media campaigns for your drugstore and collaborate with local health influencers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste and maintain hygiene standards. |
| Equipment Maintenance | Set up a maintenance log for regular equipment checks and servicing to avoid costly repairs. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Packaging | Use cost-effective, eco-friendly packaging and offer discounts for customers bringing their own bags. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep staff updated on the latest health regulations and customer service techniques. |
| Waste Management | Implement a waste tracking system to minimize waste and ensure proper disposal of expired medications. |
| Technology | Invest in multi-functional pharmacy management software to streamline operations and improve customer service. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels, reduce spoilage, and ensure timely reordering of popular items. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs, especially for home delivery services. |
| Security | Invest in a reliable security system to prevent theft and ensure the safety of your staff and customers. |
| Customer Loyalty Programs | Implement a customer loyalty program to encourage repeat business and increase sales. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best drugstores in the world!
There are drugstores that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a drugstore
Yes, some expenses for your drugstore are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| Drugstore Expense | Reason It's Useless |
|---|---|
| Luxury Store Fixtures | Overly lavish fixtures don't necessarily attract more customers and can be a drain on the budget. |
| Premium Brand Products | Unless you are a high-end pharmacy, most customers are satisfied with generic or mid-range options. |
| Excessive Product Variety | A large inventory increases storage costs and leads to more expired products. |
| High-End Display Cases | Top-of-the-line display cases are not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your drugstore |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for magazines or other services often go unnoticed by customers. |
| Exclusive Product Lines | Stocking rare products can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Bags | Personalized bags are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Store Decorations | Elaborate decorations are often ignored by customers and add to the cost. |
| High-End Shelving | Luxury shelving is prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Signage Designs | Frequently redesigning signage is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense.Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Pharmacy Equipment | Specialized pharmacy equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your drugstore!
Managing a budget for a drugstore when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw everything off balance.
This constant pressure makes it nearly impossible to invest in growth opportunities, leaving you constantly focused on just covering your expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more breathing room and more money to invest in your business.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of drugstores just like yours. Get them now!
Make your drugstore more profitable
We have studied the strategies of the best drugstores in the world. All their tactics are explained in our pack!
