Page 22 - P4304.1-V100_PS Magazine - August 24 PRINT

Maximise branded margin

with PSUK

As with any business, protecting and growing margin
is usually the main priority and it is no different in the
dispensary. In today’s market place, increasing costs,
declining re-imbursement and other barriers can make
this a real challenge.

Ensuring that your practice is maximising the available
discounts, particularly on branded purchases, can unlock
significant benefits and help navigate these financial challenges.

Understanding where profit is made

Almost half of a dispensary’s purchasing is likely to be on
11.18%
branded products, with the remainder on generics. Generic
purchasing is always profitable for the dispensary, but the
same cannot always be said for branded purchases. Due to
clawback, typically around 11.18%, and reduced branded
discounts, branded purchases will result in a loss unless there
is a Manufacturer Discount Scheme (MDS) attached to it.
Therefore it is crucial that as a dispensing practice you are
aware of the options available to you when purchasing branded
products and the impacts they can have on your margins.

Clinical decision making and
financial impact

While the decision on what to prescribe for a patient must
always be a clinical one, there are often multiple brands
available that can be interchanged. It is important for you to
understand what options are available and the impact these
choices have on your dispensary’s margins. Making informed
decisions can prevent the high costs associated with branded
products from eating away at your profits. Incorrect choices
can cost the dispensary hundreds of pounds each month!

22 PS Magazine | Maximise branded margin with PSUK Buy direct online at PSUK.co.uk

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