Is owning an independent pharmacy profitable – and is it the best strategic move for you?
This is a tough question to answer, especially as the pharmacy market in the U.S. continues to evolve. There are lots of moving pieces to consider when evaluating the financial pros and cons of making the leap from pharmacist to pharmacy owner.
One of the most important factors that’s going to affect your ultimate decision is salary. Will your income as an owner be higher than as a pharmacist, and if so, by how much? But what about the other costs: stress level, financial risk and work/life balance? Would the transition be an upgrade or a downgrade for you? Much to consider.
As you evaluate making a career transition from pharmacist to owner, there are pros and cons to each.
Pharmacist as an Employee
As an employee, it can be a pretty sweet gig – if it is just about a paycheck. Pharmacists were the 36th most highly paid occupation in 2018 – edging out astronomers and physicists – with total base compensation reaching $38.3 billion across the U.S., an increase of $633 million over the previous year.
According to data produced by the U.S. Bureau of Labor Statistics, as a pharmacist you may earn an hourly wage of approximately $60.10, for an annual salary of $125,510. Other data sources, such as recruiting sites provide averages based on recent postings and geography. These are estimates and can vary widely based on education and responsibility levels, certifications, type of employer and what the local market will bear. Market trends suggest that earning capabilities will keep rising.
What else to expect as an employee vs owner? Someone else is responsible for providing your benefits, support staff and inventory. And at the end of your shift, you can typically go home and forget about it until the next time you are scheduled to work.
But is that all you want?
The downside can be the lack of control over your destiny – and that of your customers. The overall operations not working optimally? You won’t typically get a vote on what needs to change to drive success. Feel that the customers could use a more personalized approach? If you are the Pharmacy Manager, you may get to make some suggestions, but if you work for one of the large retail chains, the processes and procedures are likely outside your sphere of control.
