DRIVING BUYING GROUPS Defining Symbol Groups
Deciphering and deciding what direction to take an independent pharmacy in can be a daunting decision.
Tony McEntee, Chief Executive, Allcare Group
I
ndependent pharmacies are being hit with increased costs on a yearly basis and it may be the case that
profitability is at an all time low. Tony McEntee, CEO of Allcare Pharmacy Group looked at what makes a symbol group and the key differences.
Symbol and franchise groups can be somewhat of a tricky area for many independents but for some pharmacies who may be thinking of joining up with a group, it does not have to symbol the end of the independent road.
In fact, symbol groups and franchise groups can add a lot to a pharmacy business while still maintaining a lot of its independent status, and by branding to a particular group it can open up a whole new world of potential profits for a struggling independent.
We are not a symbol group, nor a co- operative but a group of independent pharmacists who own and have complete control over a brand that we have designed to serve our needs and benefit our business.
In having our brand, it allows us to offer a range of benefits for our members businesses including
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bespoke marketing, health screening, monthly promotion, staff training and support etc.
The brand also allows us to build long term partnerships with suppliers. In working strategically with them we can strengthen the Allcare offering to our customers to the mutual benefit of our members and suppliers.
Allcare is a franchise operation that has both a systemisation and procedural led structure in place.
We are very different to a co-op or a symbol group. To some degree we are a buying group but we are a lot more than that.
A franchise is based on systems, procedures, ways of working, but the biggest thing is that the Allcare franchise model is evidence based and we can prove that it does work.
Allcare is owned by Uniphar which is key to our model. Uniphar owning Allcare is critical because having wholesaler back-up for the long-term viability of the business is crucial and we have that support.
As a franchise operation, Allcare lead by empowering the pharmacist and
franchisee. As a franchise group you have to lead and lead for the good of the group.
That’s normal for any franchise operation. We want our franchise partners to achieve their best at all times.
We have a support team in place that includes a buying team. Within that team they are buying on behalf of the 76 stores that we currently have so they’re doing deals on Generics, PI’s, Front of Counter etc. Allcare is a compliance model which results in Allcare being able to genuinely get the best price from suppliers and manufacturers.
Allcare, as a franchise model, has many of the same offerings as both the co-operatives and symbol groups, but we also go a step further.
We offer both re-branding and a shop re-fitting service, merchandising and category management in the front of shop, the installation of McLernon’s software, measurement and analysis of the company and its data using high end Business Intelligence and benchmarking, high generic penetration levels, a claims management service, and territory managers who support each franchise
partner and maintain the standards of the group.
One of the first things an independent will query is what will be the cost to the pharmacy to join a group? Will there be a joining fee? Is there a monthly fee? Is there a contract or can a pharmacy leave at any time?
What differentiates Allcare from other pharmacy groups is the fact that there is a joining fee and, subject to a site survey, there is a low cost, high impact re-brand.
Allcare charge a monthly fee that is worked out as 1.5% of the pharmacy’s turnover. In return franchise partners receive a fully comprehensive support model that provides a significant return on investment
Allcare franchise partners sign a contract for a minimum of one year.
When making a decision to join a group independent pharmacists should always talk to each individually. This will help you to make an informed decision about which you would like to join. Ultimately, the pharmacist will have to choose what feels right for them in the long-term plan for their business. n
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