{"id":17522,"date":"2021-05-03T13:57:00","date_gmt":"2021-05-03T17:57:00","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=17522"},"modified":"2024-07-24T16:01:01","modified_gmt":"2024-07-24T20:01:01","slug":"i-wish-cvs-pharmacy-would-franchise-their-business","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/i-wish-cvs-pharmacy-would-franchise-their-business","title":{"rendered":"CVS Pharmacy: A Franchise-Ready Business With Crazy-High Revenue"},"content":{"rendered":"

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\nA question: is CVS a franchise<\/b>? Have you ever wondered that yourself? They sure have a lot of retail locations<\/a>. Heck, there are two of them within 3 miles of my Castle in Ohio.<\/p>\n

But before I begin here, one question that’s frequently asked is this one:<\/p>\n

“What does CVS Pharmacy stand for<\/em><\/strong>?”<\/p>\n

CVS stands for “Consumer Value Stores<\/em>.” Betcha didn’t know that.<\/p>\n

Don’t feel bad. I didn’t either. Anyway…<\/p>\n

Every time I’ve gone in CVS for a prescription, I mean every<\/em> time, there are literally hundreds<\/strong> of filled prescriptions sitting in plastic baskets-not waiting to be picked up…but waiting to be put into bins alphabetically for pick up in the future. The prescriptions that are<\/em> ready to be picked up are already in<\/em> the bins. Hundreds of them! Every day.<\/p>\n

As a matter of fact, I’ve never walked into that particular CVS Pharmacy where the visual I described above was any different. There are always<\/em> hundreds of prescriptions sitting there ready for pickup. There may even be thousands. Maybe I’m underestimating, I don’t know. But I know this:<\/p>\n

CVS Pharmacy stores are killing it. They’re bringing in crazy-high revenue<\/a>. Every. Single. Day. Talk about a franchise-ready business!<\/p>\n

So is CVS a franchise? Is it a pharmacy franchise<\/strong>?<\/p>\n

Ahhhh…no. It’s really too bad you can’t own and operate a CVS store as a franchisee<\/em>.<\/p>\n

Scratch that: It’s too bad I<\/strong> can’t buy<\/a> one.<\/p>\n

Some Pharmacy Business Numbers<\/h2>\n

I don’t know enough about the retail pharmacy business to know what the typical product margins are for prescription drugs off the top of my Crown. But, I did look* around a bit to find out what they were. Without going into a lot of detail, here’s what I found:<\/p>\n

1. Brand-name prescription drugs have a pretty low profit margin. Anywhere from 5% to 14% or so.<\/p>\n

2. Generic prescription drugs have a huge<\/strong> profit margin…up to 88%!<\/p>\n

Forgetting some of the variables that come into play in the retail pharmacy business, like administering vaccinations<\/a>, whether or not patients are on Medicare, or they’re paying in cash, volume<\/em> is the name of the game. And, CVS has it.<\/p>\n

*You are welcome to go to DrugChannels.net<\/a> to take a deeper dive into the retail pharmacy profit margin numbers.<\/p>\n

Obviously, the way to go, if you’re a retail pharmacy company like CVS, is to focus on generic<\/em> drug sales. Let’s assume the executive team at CVS headquarters in Woonsocket<\/a> does.<\/p>\n

I Wish CVS Pharmacy Was A Pharmacy Franchise<\/h2>\n

I can imagine the feeling I would get as a franchisee of CVS…doing my end of the day duties…in this case, adding up the day’s receipts from my retail pharmacy location<\/strong>.<\/p>\n

I’m talking thousands of receipts, and they’re not only from the pharmacy. Think about all the people that come into the store for other things. Like, shampoo, first-aid products, beverages, school supplies, printer ink, light bulbs…and more. People who didn’t have to come in for a prescription. You see, owning a CVS Health Pharmacy would be so much more than just dispensing drugs.<\/span><\/p>\n

Adding up the day’s receipts would be well…fun!\u00a0<\/span><\/p>\n