In order to run your pharmacy, you have to stock it with the products your patients need. The price you pay to get that inventory on your shelves is measured by a value known as the “cost of goods sold.”
According to the2019NCPA Digest,the average cost of goods sold for an independent pharmacy is $2,724,000 a year, or $227,000 a month.
To find the cost of goods sold for your pharmacy, you can use this formula:
Cost of Goods Sold = Beginning Inventory + Purchases During the Period – Ending Inventory
On its face, the formula is simple, but for pharmacies, the cost of goods can be affected bymany different factorswithin your wholesaler contract.
Most of the factors are interdependent — changing one affects another — and most of them depend on the pharmacy’s buying behavior.
These are some those factors that could influence a pharmacy’s cost of inventory:
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