Being a leader in #Internet is not easy and it is not free.

Today we share an article about the experience of a web leader in the sale of cheap designer furniture. SuperStudio.

https://lnkd.in/dJYSxcDe

We did not enter the business model because we lack information to assess whether it was a giant with feet of clay or not.

We are interested in the following statement from the article:
"Invest a lot of money in online advertising, with Google at the helm, to be the first every time someone searches. A lot is around 10% of turnover (about 3 million euros per year), because if you don't pay, you don't go out and your sales fall ".

All of us who have managed parapharmacy websites know the Google effect. #Adwords works in steps. You invest a few euros and your tickets multiply, and with them the conversions. It lasts a while, a little, they stagnate and then reduce the presence, which tends to invest more money, so the search engine rewards you again ... and so on until the #profitability of the #sales achieved suffers .

Following the reasoning of the article, taking into account that an average pharmacy has a turnover of € 900,000, it should invest € 90,000 to have an Internet presence. We have managed pharmacies that: with strict cost control, lower-than-average personnel ratios and no financial burdens; we achieve profitability of up to 15% of the turnover. This means that the final benefit for the owner, after the advertising investment on the Internet, is 5% of the invoiced amount. Without taking into account extra personnel costs or the logistics essential for this.

Assessing whether this profitability is sufficient to reward the effort involved in entering #ecommerce remains for the analysis of the particular circumstances of each business.

What we can assure is that entering into businesses and services parallel to the classic community pharmacy requires considering and analyzing them as independent business units. It doesn't matter if it is a #SPD service for #Residencies for the elderly or #webs for #selling #parararmacia.

Each unit must have the necessary personnel and resources for its proper functioning and profitability separately, although there are synergies between them.

It is necessary to be clear about the objectives in extra billing that are intended to be achieved and the resources that will be necessary for this, to assess whether the # final profitability improves in the #value of the #business.

The #pharmacy should be #omnichannel, but to think that increasing sales is everything and at any price, you are wrong.

To be continue...

#BeFarmaPro increasing the value of the #pharmacy.

info@befarmapro.com

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