NATIONAL COMMUNITY PHARMACISTS ASSOCIATION

Sales Volume SummarySales indicate the size of the pharmacy and can influence financial performance. To determine how a pharmacy’s ratioschange as sales increase, we sorted the pharmacies intofour separate groups based on their annual sales.n Less than $2.5 millionn $2.5 million to $3.5 millionn $3.5 million to $6.5 millionn More than $6.5 million The three basic statements (common-sized [average]income statement, median financial benchmarks, and common-sizedbalance sheet) for these sales categories appearin Tables 5, 6, and 7. This information shows some significanttrends. Our observations follow.ProductivitySales Per EmployeePharmacies with sales between $3.5 and $6.5 million hadthe highest productivity, followed by pharmacies with salesover $6.5 million. This high employee productivity is asignificant driver of the industry’s profitability.SALES PER EMPLOYEEPharmacies Have Higher Staff Cost Per EmployeeAs Sales GrowThe additional productivity comes at a higher cost. Medianstaff costs per employee for pharmacies with sales between$3.5 million and $6.5 million and sales over $6.5 millionwere the highest of all the sales categories. This is likelydue to the additional management and administrativestaffrequired to operate larger pharmacies.Pharmacy Productivity Per Square FootProductivity of floor space increased substantially as salesincreased. It is important for pharmacy owners to maximizetheir space to generate sales.Pharmacy Productivity per square footUnder $2.5M to $3.5M to Over $2.5M $3.5M $6.5M $6.5M Prescription sales per $2,687 $3,709 $4,543 $6,759prescription square foot All other sales pernonprescription$66$81 $103$143square footAverage sales persquare foot $821 $1,138 $1,395 $1,838Average overallsquare feet2,622 2,844 4,345 5,656 STAFF COST PER EMPLOYEESales Volume Summary19