The Inventory Myth: What do you really earn? | Blog | Fullscript

The Inventory Myth: What do you really earn?

Written Oct 13th, 2016 by Franco Varriano

The Inventory Myth: What do you really earn?

Don’t let the margins deceive you

At first glance, many practitioners will mistakenly believe that carrying physical inventory offers a better margin than a platform like Fullscript. On the surface it may seem that way, but we decided to take it one step further and break down the true cost of on-site dispensing. You can check out our free case study here.

Carrying inventory comes with many hidden or lesser known costs that are often not factored in when deciding between on-site inventory or a virtual dispensing solution like Fullscript. When you carry inventory, you’ll have to factor in the variable costs of:

When you begin to break down these costs, your net profit margin is often the same or less than a hassle-free platform like Fullscript.

The Refill Rate is Key

The biggest flaw with inventory isn’t actually the initial order, but rather the follow-up refill orders. Most clinics don’t have a solution for tracking the number of patients that actually come back to the clinic to refill.

We’ve found that practitioners with inventory see an average refill rate of 1.3x—you might have the odd patient who comes back in looking to renew their prescription, and the rest either turn to their local health store or other online stores where counterfeit products are often an issue. With Fullscript, the refill rate is an industry-leading 5 x and quality is guaranteed.

Inventory vs Fullscript Breakdown

What about the opportunity cost?

Aside from lower refill revenue, the next biggest cost for onsite inventory is the actual capital cost. Some clinics have as much as $20,000 tied up in inventory sitting on their shelves. Imagine that capital could be spent on initiatives that actually drive the business forward.

Most clinics that make the switch to Fullscript end up reallocating their new found time and capital into practice growth and patient acquisition/retention. Some areas to invest in could include:

You can browse our free case study here »


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