How much capital is required to launch a new drugstore in Nigeria? Whether you’re in an urban or rural area, your location in Nigeria will determine how much it will cost to start a pharmacy. The following are some of the variables that contribute to the high startup costs associated with opening a community pharmacy in an urban region for a novice businessperson with limited financial resources:
A Very Expensive Way To Live Rents’ Monthly Costs The high expense of shop furnishing necessary to reach the level of your rivals Competitors Electrical equipment such as air conditioners, refrigerators, generators, and others will add to the cost of the services rendered by the company.
How Much Does It Expense to Launch a New Drugstore?
How much can a pharmacy make you?
The 10 States With The Highest Average Salaries For Pharmacists – The Bureau of Labor Statistics reports that the average annual compensation for a pharmacist in the United States is $123,670. This figure is much higher than the average annual salary for all occupations, which is $51,960.
The following is a list of the top ten states in terms of the average annual salary for pharmacists:
Alaska: $139,880 $139 690 dollars in California Vermont: $135,420 Maine: $133,050 $32,400 for the state of Wisconsin Oregon: $130,480 Minnesota: $129,080 Missouri: $128,420 $127 360 dollars for Washington $127,350 for the state of New Hampshire
It’s interesting to note that most of the states in the top ten with the highest average pay for pharmacists are located in the north, whether they’re in the West or the East.
Over the course of the past five years, from 2013 to 2018, there has been a significant rise of 10.3% in the average wage for a pharmacist in Vermont. Cities with the Highest Proportion of Female Entrepreneurs are Very Popular Right Now.
Are pharmacy owners rich?
It’s possible that you won’t believe it, but proprietors of independent pharmacies are really doing rather well financially, with personal incomes average about $300,000 in 2008. This shocking information was discovered in the Executive Summary of the 2009 NCPA Digest, which was sponsored by Cardinal Health.
To access the NCPA’s public Digest page, please click here. Do you need any more evidence that times are good? The complete set of financial results has been categorized as “TOP SECRET” by the NCPA. What a joke transparency would be! I have no problem with people running businesses with the intention of making a profit.
But perhaps the owners of pharmacies should tone down their language of woe-is-us and quit blaming everyone else, including the government, PBMs, drugmakers, third-party insurance, cylons, sunspots, and anybody else for their (said to be) “poor” profit levels. SURPRISINGLY PRETTY PROFITS Two definitions, one each for clarity’s sake, just to make sure we are all on the same page:
The difference between a pharmacy’s total revenues and the total cost of goods (COGS) sold in order to achieve those revenues is the pharmacy’s gross profit. The term “gross profit” refers to the total amount of a company’s revenues that remain after deducting all of its operational costs. To better understand GP, think of it as Earnings Before Expenses (EBE). The spread, or gross profit, is expressed as a percentage of total sales using the term “Gross Margin.”
Now, take into consideration this intriguing tidbit that was included in the digest’s summary: There has not been a general downward trend in profits seen at independent pharmacies throughout time.
Indeed, you can.
The gross margins of pharmacies in 2008 were 23.2 percent of revenues, which is the same as the margins in 2007. (See Table 1.) In spite of what you may have been led to believe, the gross margins for independent pharmacies have maintained in a pretty consistent range between 22 and 24 percent since at least the year 1999.
In 2008, the average income generated by a drugstore was $3.9 million, representing a 7.7% increase when compared to 2007.
(See Figure 1.) Due to the fact that gross margins were unaffected, gross earnings each pharmacy increased by 7.7%, reaching a total of $900,000 per pharmacy. My research on the pharmacy business includes further information concerning profit margins for pharmacies.
PHARMACY OWNER ECONOMICS In light of the data shown above, my best guess is that a pharmacy owner was able to set aside approximately one-third of these gross revenues (almost $300,000 in 2008) for personal use.
Congrats! Here is my work in math. The following are the key expenditures that come from a pharmacy’s gross profit:
Non-Owner Operating Expenses include everything that is required to run the pharmacy, such as payroll, rent, licenses, and insurance, but do not include the owner’s income and benefits package.
- Compensation for the Owner: Compensation and advantages enjoyed by the proprietor of a busy pharmacy Income After Operating Expenses: What some people refer to as “the bottom line”
This is a formula with no net gain or loss;
When one variable is increased, another must be decreased. For instance, if Owner Compensation is increased, this will result in a fall in Net Operating Income. When you are reading studies regarding “poor earnings” that were funded by pharmacies, keep this straightforward mathematical link in mind.
According to the NCPA Digest, the Owner’s Discretionary Profit is calculated by adding the Owner Compensation to the Net Operating Income (ODP). Because the current amount was not provided by NCPA in the 2009 Digest that was made accessible to non-members, I am unable to provide it to you on this site.
I apologize for the inconvenience. More on why confidentiality is required may be found below. According to prior research, the ODP percentage varies from 7% to 8% of revenues, which translates to about one-third of gross margins that range from 22% to 24%.
Sources: You may see my comments that are below this 2008 Drug Channels article or check out the reports that are accessible in the resource collection maintained by the AMCP. Yes, I am aware that YMMV applies to situations like the one with Parker Drug.
(With a hat off to the blog of the NCPA.) But the last time I looked, anecdote does not have a plural form that is data. TRANSPARENCY IS IN YOUR BEST INTERESTS, BUT IT IS NOT IN MINE. As I mentioned above, I don’t have any conceptual issues with the idea that a person who owns a small business might be rewarded richly for their efforts.
- It is one of the factors that contributes to the greatness of this country;
- It is a more difficult subject to answer whether or not proprietors of pharmacies make an excessive amount of money;
- Just ask Wal-Mart what they think;
Why then does NCPA choose to conceal the financial data from the polls that it conducts? Once upon a time, non-members of NCPA were allowed to purchase the average financial results, but this practice is no longer in place. In point of fact, when members download the financial data for For Your Eyes Only, they are now presented with some legal language that seems somewhat ominous: This website and the downloadable Adobe Acrobat files (pdfs) regarding the 2009 NCPA Digest, sponsored by Cardinal Health financials contain information that is confidential or legally privileged and are intended solely for the use of active NCPA members.
The information can be found on this website as well. It is expressly forbidden to reproduce, distribute, or otherwise make this material available in any way. It is permissible for NCPA members to utilize the material in connection with the operation of their own businesses; nevertheless, it is expressly forbidden for members to take any other action based on the contents of the document.
Any use of the contents that is not permitted violates the law. Yikes! The following is the explanation that John Norton, who works for the NCPA, gave me on the reason why the Digest’s aggregated industry averages are no longer available to those who are not members of the organization: “NCPA is committed to improving independent community pharmacy both now and in the future by effectively advocating for our members’ interests and providing useful resources to them.
Our capacity as an organization to carry out that objective is, to a certain extent, contingent upon the breadth and depth of our membership. We strive to bring in new members and keep the ones we have by providing advantages that are not just unique but also practical and helpful.
The Digest is the only yearly comprehensive assessment of community pharmacy that is conducted throughout the entire industry. It is a valuable tool for any company owner who is striving to be successful in the competitive pharmacy marketplace to be able to compare their pharmacies with the trends in the industry.
Members have the ability to do this “’nuff said. —- CAN I INTEREST YOU IN HANUKKAH? In a completely unrelated matter, I omitted to mention that the opening night of the Festival of Lights took place last Friday.
Turn off Adam Sandler and listen to Stephen Colbert and Jon Stewart sing “Can I Interest You in Hanukkah?” instead. This song is my current favorite throughout the holiday season.
Are pharmacists rich UK?
When it comes to selecting a profession, there are a lot of aspects to think about, including one’s own preferences, the amount of hours worked, and the terms and circumstances of the job. Despite this, the pursuit of financial gain continues to be a primary motivation.
In this article, we take a look at the possible earnings that might be available to students who would like to pursue a career in the pharmaceutical industry. In addition, we investigate the steps involved in becoming one, as well as the outcomes that might be anticipated.
Introduction The following is a guide to the salary that pharmacists in the UK may expect to earn, provided by the National Careers Service:
Starter: £26,500 £32,000 to £41,000 for those with experience Paid between £41,000 and £83,000 due to extensive expertise.
These estimates were derived from pay grades used by the NHS and are probably accurate for community pharmacies as well.
According to the Bureau of Labor Statistics, the typical annual pay for pharmacists in the United States in 2016 was $122,230, and the median hourly rate was $58.77. This information was gathered in 2016.
Additional facts on the salary of pharmacists:
Pharmaceutical Work in the United Kingdom Career Progression and Specialization Opportunities for Pharmacists in the United States
Pharmaceutical Work in the United Kingdom The following are the requirements that need to be met before one may call themselves a trained pharmacist in the UK:
A Master of Pharmacy (MPharm) degree that is awarded after four years and is recognized by the General Pharmaceutical Council (GPhC) A pre-registration course at a pharmacy that lasts for one year.
A test required for registration
The MPharm program is provided by a variety of institutions all throughout the UK, and each of these universities has its unique set of entrance criteria. On the NHS Health Careers website, you can find out more information on how to qualify to work as a pharmacist in the United Kingdom.
In the United Kingdom, newly licensed pharmacists have the option of working for the National Health Service (NHS) in hospital pharmacies or as community pharmacists, for instance in high street chemists like Boots or Lloyds Pharmacy. Both of these types of jobs are available.
The typical workweek is anything between 37.5 and 40 hours, and the beginning income can range anywhere from around £26,500 to £32,000. If you are a licensed pharmacist in the United Kingdom, you might be interested in becoming a member of the Royal Pharmaceutical Society (RPS).
It is crucial to stay current with the most recent advances and the best practices in the field, just as it is with any other career. Training opportunities such as courses, seminars, and workshops are provided by the RPS for registered pharmacists so that they may stay current in their specialty and network with others working in the industry.
- Pharmacy Work in the United States Acquiring a Doctor of Pharmacy degree, sometimes known as a “PharmD,” is required in order to work as a pharmacist in the United States;
- This degree can be earned at a pharmacy school or college that has been approved by the Accreditation Council for Pharmacy Education;
The Doctor of Pharmacy degree, by itself, typically takes four years to complete, and the majority of schools require applicants to have have finished at least two years of undergraduate study. In addition, there are combination programs that can last up to six years and accept students right after they graduate from high school.
If you go to the website for the Student Center of the American Association of Colleges of Pharmacy, you will be able to get additional information about applying to pharmacy school and attending pharmacy school.
After earning a Doctor of Pharmacy degree (PharmD), prospective pharmacists in the United States are required to pass the North American Pharmacist Licensure Exam (NAPLEX), the Multistate Pharmacy Jurisprudence Exam (MPJE), and any other examinations or tests that may be mandated by the state in which they intend to practice.
- Only then are they eligible to apply for a license;
- Local pharmacies, such as those found in grocery shops, general goods stores, and pharmacy stores, as well as hospitals and other healthcare institutions, are potential places of work for newly licensed pharmacists in the United States;
Progression in One’s Career and Subspecialization You may see a raise in your compensation as you gain further experience and abilities as a pharmacist. You may also be able to take on extra tasks, such as training new members of the staff, supervising junior pharmacists, and perhaps managing your own team.
You might be able to become qualified to prescribe medications if you receive more training. There is also the option for pharmacists to specialize in a particular subject of pharmacy practice. It’s possible that, as part of your MPharm or PharmD program, you’ll have the chance to specialize your area of study, or that, once you graduate, you’ll be able to hone your skills on the job.
The following are some examples of possible focuses:
Pharmacology Healthcare for the mentally ill, pediatrics, and oncology
The pursuit of career advancement and specialization can also be assisted by furthering one’s education. One example is the Master of Science programs in Pharmaceutical Science and Pharmaceutical Analysis that are provided by Kingston University London.
It is important to research the many postgraduate options available because schools of pharmacy typically provide a variety of postgraduate programs. You could also be interested in advancing your pharmaceutical research by enrolling in a doctoral program.
When compared to funding for PhDs in the arts or social sciences, funding for PhDs in scientific domains is typically more readily available. In both the United Kingdom and the United States, senior research posts tend to attract the top end of the income bands for pharmacists.
Summary So, how much do pharmacists make on average? Becoming a fully qualified pharmacist requires a substantial time commitment due to the required undergraduate degree and approximately 4 years of study period for the MPharm or PharmD, plus any further study you may with to undertake – however, it does have the potential to be a highly lucrative career path with top salaries of approximately £80,000 in the UK and $120,000 in the US.
In addition, becoming a fully qualified pharmacist requires a substantial time commitment due to the required undergraduate degree and approximately 4 year study period for the MPharm or PharmD On their respective websites, the following organizations give information on how to become a pharmacist as well as salaries for pharmacists:
Careers and Employability Service, National (UK) Health Careers in the NHS (UK) The Royal Society of Pharmaceutical Medicine (UK) US Bureau of Labor Statistics American Association of Colleges of Pharmacy (US) (US)
Related jobs We discovered all of these Pharmaceutical Job Opportunities.