Mark ups

Re: Mark ups

Martin Atkinson — Wed, 30 May 2012 17:38:14 GMT

I put 120% on injectables and POM drugs like antibiotics which are for short courses or may go out of date before they're used up, drugs which are for long term treatment i.e. cardiac drugs, felimazole etc which fly off the shelves get 50% if the client buys 3 months supply and comes back for a 3 month check and expensive things like Atopica or Optimmune probably 30%.

Re: Mark ups

Rob Loxley — Tue, 29 May 2012 14:28:08 GMT

Mark as I see it you've two things to look at:

- when adding a new drug, what is your markup and how do your decide that (fixed %, sliding scale %, with one eye on the internet)
- if you come up with a different scheme to what you are doing now that results in cutting the markup how do you make up for lost profit?

I'd agree with some kind of sliding scale and also using every opportunity (buying group, alternative drug supplies) to reduce your costs.
On the latter point, how many people are requesting prescriptions?

Re: Mark ups

Bob Russell — Tue, 29 May 2012 10:07:45 GMT

We have variable (if somewhat arbitrary) mark-ups. Drugs that have a regular turnover have a standard mark-up and those that sit about for that odd case are marked up at a higher rate to make up for that day when some have to be thrown away because they have reached the expiry date.

St Francis have a very good calculator that allows you to buy cheaper medicines and adjust the mark-up so you don't lose profit but the owner gets a better price and is less likely to go down the internet route.

(Good thing that most internet drug suppliers are no longer able to call themselves 'pharmacies' by the way!)

Re: Mark ups

Mark Hedberg — Tue, 29 May 2012 06:19:44 GMT

Bet you that 93% made the numbers on the spreadsheet work. You know, instead of having a business plan. :p

Re: Mark ups

Evelyn Barbour-Hill — Mon, 28 May 2012 23:55:16 GMT

[quote user="Michael Woodhouse"](I worked in one that added 93%)[/quote]

That is bizarre. Why 93? Why not 100, or 92.75, or 94.335?

Partners' meeting:

"Now then chaps, we need to decide our markup."

"I know! 93%!"

Or perhaps it was: "I've been reading this practice management magazine, and I've calculated the optimum as 92.897839%"

Re: Mark ups

Michael Woodhouse — Mon, 28 May 2012 23:20:28 GMT

We pretty much just put 50% on everything. Some long term meds we will offer a 15% discount. This is usually generic NSAIDS for arthritic dogs. If we swap to a generic we maintain the margin by adjusting the mark up %. The only dogs on Atopica here are insured.

I know some practices mark up much more than 50% (I worked in one that added 93%)

Re: Mark ups

Mark Hedberg — Mon, 28 May 2012 20:19:17 GMT

Can you get a better price on the drugs in question? - sometimes all it takes is a question; sometimes you have to change supplier or join a buying group. Some vets in other countries just pretty much sell drugs at breakeven and charge more for services, but I don't know that the UK is at that stage just yet.