Superintendent Pharmacist

[tpml-tgg]

Hi I have been asked to set up and manage a brand new pharmacy which is expected to do around 10000 items within a few months. The owner wants me to contribute for an ? percentage share and also become the superintendent pharmacy manager.

My 2 quesrions are.
First of all how much should I expect for a superintendent pharmacist manager role.

Secondly how much money should I pay for an x percentage in the proposed pharmacy. I am under the impression that normally for an established pharmacy attached on the end of a medical centre the goodwill would be 1:1 but realistically what would I be looking to pay considering the business will need to be run by me from day one of opening. I am assuming I would be looking to pay a discounted rate?

Many thanks

[Tony Schofield]

Discounted what? You don't know the turnover, overheads, profit etc. It is difficult to quantify value. At this stage you should ask what everyone else is putting in and look at your own contribution as a percentage of the total.

They will argue that the contract is valuable and of course it is but how do you quantify it? That will be part of their contribution. How much is it worth to YOU and how much cash can you raise.

What happens if you don't achieve 10000 items? Remember that your conrtribution in working there will be adding the most value.

Are your co-directors pharmacists? Will there be professional "differences of opinion"? Why do they need a contribution from you? Are they not solvent themselves?

This scenario worries me and I personally would be looking for significant guarantees and a credible exit strategy if I were asked.

[JM342]

Hi tmpl-tgg
It will depend on the number of hours you are preapred to work - a recent job in Northampton advertised a salary of £70k.
In terms of the cost per percentage share - this is difficult to quantify as there is presumably zero business ahead ofstart-up, but I would estimate a value, after 4-5 years, of 0.75 - 1 million. The 1:1 figure will not longer be applicable post April. The important aspects to bear in mind are expect gross margin - this will generally be lower for a 100-hour pharmacy as the running costs will be higher.

IMO you will need to pay 2 - 5k per percentage share - however, this is just a 'gut' feeling.

[hibernia]

Hi I have been asked to set up and manage a brand new pharmacy which is expected to do around 10000 items within a few months.

The key word in your post is 'expected'.
Who is doing the expecting? Somebody with a great deal of knowledge and experience or somebody just pulling figures out of a hat?

[tpml-tgg]

What happens if you don't achieve 10000 items? Remember that your conrtribution in working there will be adding the most value.

Are your co-directors pharmacists? Will there be professional "differences of opinion"? Why do they need a contribution from you? Are they not solvent themselves?

Hi Tony, the other director is a pharmacist and the surgery next door does 17000 items. Lloyds and Boots are both over 100 meters away. I would have thought realistically we would be doing upto 70% of the business eventually. Through working for someone as a resident pharmacist in a similar project they were able to achieve 7500 (60%) items within 6 months from a surgery doing 12500 items per month with another pharmacy being 100 meters away. I therefore based my 10000 (60%) estimate according to that.

[tpml-tgg]

Hi tmpl-tgg
It will depend on the number of hours you are preapred to work - a recent job in Northampton advertised a salary of £70k.
In terms of the cost per percentage share - this is difficult to quantify as there is presumably zero business ahead ofstart-up, but I would estimate a value, after 4-5 years, of 0.75 - 1 million. The 1:1 figure will not longer be applicable post April. The important aspects to bear in mind are expect gross margin - this will generally be lower for a 100-hour pharmacy as the running costs will be higher.

IMO you will need to pay 2 - 5k per percentage share - however, this is just a 'gut' feeling.

Hi JM342, It is a 100hour pharmacy and he is offering 45hours with superintendent role. I would be expected to do all paperwork including VAT return and wages, etc. What would be a realistic salary estimate for the whole role?

thanks

[tpml-tgg]

The key word in your post is 'expected'.
Who is doing the expecting? Somebody with a great deal of knowledge and experience or somebody just pulling figures out of a hat?

Hi Hibernia, just from previous experience I think we should hit 60% of the surgery items within the year and then gradually grow further. As above post I have worked for a friend as a resident and out of 12500 items they were able to reach 7500 within 6 months. Having said that that was based in a health centre and this is based on the end of one. Maybe this could be factor in play.

Thannks

[Tony Schofield]

Hi Tony, the other director is a pharmacist and the surgery next door does 17000 items. Lloyds and Boots are both over 100 meters away. I would have thought realistically we would be doing upto 70% of the business eventually. Through working for someone as a resident pharmacist in a similar project they were able to achieve 7500 (60%) items within 6 months from a surgery doing 12500 items per month with another pharmacy being 100 meters away. I therefore based my 10000 (60%) estimate according to that.

If it is such a "sure thing" why does your co-director need a financial contribution from you? Why is he not keeping it all to himself. That is what worries me.

Superintendent has little more relevance than responsible pharmacist these days, particularly in a company with one pharmacy. If there was more than one pharmacy you are carrying significantly more burden and risk. What you are describing is little more than most managers now do with a fancy title. Your expected "extra income" should come from your dividend/profit share. Also, most accountants will now do the wages, VAT and tax returns cheaply as it makes their job easier at year end.

[johnep]

'If it is such a "sure thing" why does your co-director need a financial contribution from you?'
Well said Tony. 'It's a sure thing' standard pitch of get rich schemes where only the originator actually gets rich. Though leap frogging stopped when PSNC gave away on cost in exchange for control of entry. 100 hours now used as leap froggers charter. If this is so, then pharmacy should get back 'on cost'. 25% of expensive items would be good.
johnep

[sparkybw]

Hi Tony, the other director is a pharmacist and the surgery next door does 17000 items. Lloyds and Boots are both over 100 meters away. I would have thought realistically we would be doing upto 70% of the business eventually. Through working for someone as a resident pharmacist in a similar project they were able to achieve 7500 (60%) items within 6 months from a surgery doing 12500 items per month with another pharmacy being 100 meters away. I therefore based my 10000 (60%) estimate according to that.

To be honest, these days it doesn't matter how far the pharmacy is from the surgery. Most prescriptions are collected from the surgery and dispensed without the patient doing any more than collecting them at the shop. In my own situation I don't use the surgery pharmacy at all as it is much more convenient to order prescriptions on line and then collect them at Asda when I do the shopping.

Your main hope would be that patients would come to you if they have an appointment but I have to say that virtually any time I walk past the surgery pharmacy there are few if any people waiting there. But that's just my town, yours may be different.