We have recently had enquiries from Numark members asking how they can maximise their OTC sales in order to combat some of the effects of the recently announced funding cuts.
One way to maximise your cash margin on each OTC sale is to ensure you price your products according to the local conditions in which your pharmacy trades.
The Numark brand Recommended Retail Prices (RRPs) that we provide are intended to be a guide; to give you a starting point when setting prices in your pharmacy. We arrive at these prices by aiming to come between the tertiary and branded product alternatives, but as mentioned above it’s important for you to take local conditions into account as well.
Things to consider when setting pricing in your pharmacy
- Local demographics – what customer types does your pharmacy service?
- Is your pharmacy seen as a destination store for certain product types?
- What type of OTC sales do you receive? Are they impulse purchases, destination shops, or advice driven sales?
- What competition do you have in the local area for OTC products? Consider other pharmacies, high street chains, and supermarkets.
- In your local area, are you best to compete on price, or are you better placed to compete on other strengths such as expertise or accessibility?
Earlier in 2017, we carried out some pricing research on a number of own brand lines, comparing pricing to branded alternatives available. From this research, we have created the table which can be seen below, which features an RRP range for a number of products.
| PIP Code | Product | Pack Size | Unit Trade Price1 | MIN RRP2 | MAX RRP3 | Gross margin per unit sold at MIN RRP | Gross margin per unit sold at MAX RRP |
|---|---|---|---|---|---|---|---|
| 379-7180 | Allergy Relief Tablets (Loratadine) | 30 | £1.00 | £2.50 | £5.49 | £1.50 | £4.49 |
| 107-6132 | Antihistamine Tablets (Chlorphenamine) | 30 | £0.43 | £1.00 | £2.99 | £0.57 | £2.56 |
| 262-3189 | Antiseptic Cream (Cetrimide) | 30g | £0.50 | £1.00 | £1.29 | £0.50 | £0.79 |
| 107-4640 | Aspirin Dispersible Tablets 300mg | 32 | £0.30 | £0.60 | £0.69 | £0.30 | £0.39 |
| 098-7412 | Aspirin Dispersible Tablets 75mg | 100 | £0.32 | £0.75 | £1.49 | £0.43 | £1.17 |
| 107-4681 | Aspirin Tablets 300mg | 32 | £0.30 | £0.60 | £0.79 | £0.30 | £0.49 |
| 109-8458 | Aspirin Tablets 75mg Enteric Coated | 56 | £0.58 | £1.25 | £1.99 | £0.67 | £1.41 |
| 386-2554 | Bite & Sting Relief Cream (Hydrocortisone) | 10g | £0.80 | £1.75 | £1.99 | £0.95 | £1.19 |
| 026-6874 | Calamine Lotion BP | 200ml | £0.85 | £1.75 | £1.89 | £0.90 | £1.04 |
| 379-9178 | Chesty Cough | 200ml | £1.14 | £2.25 | £3.49 | £1.11 | £2.35 |
| 026-6890 | Clove Oil BP | 10ml | £1.20 | £2.25 | £2.49 | £1.05 | £1.29 |
| 346-7040 | Co-codamol Tablets 8/500mg (Caplet Form) | 32 | £0.70 | £1.50 | £1.99 | £0.80 | £1.29 |
| 370-9763 | Cold & Flu Capsules, Max Strength | 16 | £0.60 | £1.25 | £2.19 | £0.65 | £1.59 |
| 110-0148 | Cold Sore Cream (Aciclovir) | 2g | £0.91 | £2.50 | £3.99 | £1.59 | £3.08 |
| 309-4083 | Constipation Relief (Bisacodyl) | 20 | £0.81 | £1.50 | £1.79 | £0.69 | £0.98 |
| 106-1910 | Diarrhoea Relief Capsules (Loperamide) | 12 | £0.60 | £2.75 | £3.49 | £2.15 | £2.89 |
| 108-9432 | Diarrhoea Relief Capsules (Loperamide) | 6 | £0.34 | £1.00 | £1.59 | £0.66 | £1.25 |
| 373-7434 | Diarrhoea Relief Instants (Loperamide) | 6 | £0.97 | £2.25 | £2.49 | £1.28 | £1.52 |
| 379-9160 | Dry Tickly Cough | 200ml | £0.46 | £2.00 | £3.49 | £1.54 | £3.03 |
| 359-0627 | Flu All in One Chesty Cough & Cold Tablets | 16 | £0.90 | £2.00 | £3.49 | £1.10 | £2.59 |
| 379-7198 | Hayfever & Allergy Relief Tablets (Cetirizine) | 30 | £1.00 | £2.50 | £5.49 | £1.50 | £4.49 |
| 109-8417 | Hayfever Relief Nasal Spray (Beclometasone) | 200ds | £2.33 | £5.00 | £6.19 | £2.67 | £3.86 |
| 367-0957 | Hayfever Relief Nasal Spray (Beclometasone) | 100ds | £2.04 | £3.50 | £3.99 | £1.46 | £1.95 |
| 387-1373 | Heartburn and Indigestion Relief Oral Solution | 250ml | £1.60 | £3.50 | £3.69 | £1.90 | £2.09 |
| 387-1340 | Hypromellose 0.3% Eye Drops | 10ml | £0.58 | £1.50 | £2.99 | £0.92 | £2.41 |
| 112-4478 | Ibuprofen Capsules 200mg | 32 | £0.79 | £1.50 | £2.49 | £0.71 | £1.70 |
| 110-5428 | Ibuprofen Pain Relief Gel 10% | 50g | £2.08 | £4.50 | £5.99 | £2.42 | £3.91 |
| 110-5436 | Ibuprofen Pain Relief Gel 5% | 50g | £1.54 | £3.75 | £4.69 | £2.21 | £3.15 |
| 356-4655 | Ibuprofen Suspension 100mg/5ml | 100ml | £0.90 | £2.00 | £2.49 | £1.10 | £1.59 |
| 024-0564 | Ibuprofen Tablets 200mg | 24 | £0.40 | £1.00 | £1.69 | £0.60 | £1.29 |
| 085-5098 | Ibuprofen Tablets 200mg | 48 | £0.82 | £1.75 | £2.69 | £0.93 | £1.87 |
| 209-5420 | Ibuprofen Tablets 200mg | 96 | £1.30 | £3.00 | £4.49 | £1.70 | £3.19 |
| 090-6081 | Ibuprofen Tablets 400mg, Max Strength | 24 | £0.70 | £1.75 | £2.99 | £1.05 | £2.29 |
| 110-9008 | Ibuprofen Tablets 400mg, Max Strength | 96 | £2.00 | £5.00 | £5.59 | £3.00 | £3.59 |
| 027-6352 | Menthol BP | 5g | £0.73 | £1.50 | £1.59 | £0.77 | £0.86 |
| 110-8349 | Mentholated Bronchial Balsam | 200ml | £0.85 | £1.75 | £3.49 | £0.90 | £2.64 |
| 394-5060 | Mucus Cough & Cold Relief All-in-One Tablets | 16 | £1.00 | £2.25 | £2.99 | £1.25 | £1.99 |
| 379-9186 | Mucus Cough (Guaifenesin) | 200ml | £1.21 | £2.50 | £2.99 | £1.29 | £1.78 |
| 298-1199 | Muscle Rub | 40g | £0.93 | £1.75 | £1.89 | £0.82 | £0.96 |
| 110-0114 | Nasal Decongestant Spray (Oxymetazoline) | 15ml | £0.83 | £1.75 | £2.49 | £0.92 | £1.66 |
| 284-6442 | Night Time Sleep Aid 50mg Tablets - One a Night | 20 | £2.00 | £4.00 | £4.29 | £2.00 | £2.29 |
| 224-9001 | Night Time Sleep Aid 25mg Tablets | 20 | £1.30 | £2.50 | £2.99 | £1.20 | £1.69 |
| 380-5785 | Olive Oil Ear Drops | 15ml | £0.92 | £1.75 | £1.89 | £0.83 | £0.97 |
| 378-4550 | Paracetamol Effervescent Tablets 500mg | 24 | £1.90 | £4.00 | £3.99 | £2.10 | £2.09 |
| 106-5515 | Paracetamol Suspension 250mg/5ml (6 yrs +) | 200ml | £1.75 | £3.25 | £3.99 | £1.50 | £2.24 |
| 107-4657 | Paracetamol Tablets 500mg | 32 | £0.30 | £0.60 | £0.79 | £0.30 | £0.49 |
| 367-1625 | Ranitidine 75mg Tablets | 12 | £0.59 | £1.50 | £2.69 | £0.91 | £2.10 |
| 027-4159 | Simple Linctus BP | 200ml | £0.81 | £1.50 | £1.79 | £0.69 | £0.98 |
| 373-7442 | Simple Linctus, Paediatric | 200ml | £0.81 | £1.75 | £1.79 | £0.94 | £0.98 |
| 208-7104 | Vapour Rub | 50g | £0.75 | £1.50 | £1.89 | £0.75 | £1.14 |
The pricing in this table is intended to guide you when setting prices in your pharmacy, along with the above questions. Products for this research were selected if they were a GSL or P line and are an alternative to a branded product.
The ‘Min RRP’ in the table is our ‘normal’ pricing which you will still find in our price list in YourBrand and on Numark Net, and the ‘Max RRP’ shows the maximum price we suggest for that product in order to remain competitive, which comes from an average price of branded alternatives. As an example, you may want to consider the minimum pricing where there is high competition in the local area for that product and a higher price when an item is a fast seller in your pharmacy due to the demographic it is aimed at.
Please note that we will continue to run OTC/Retail promotions for you to offer your customers. These will be based on the ‘Min RRP’ to ensure we still adhere to advertising standards in relation to running promotions in your pharmacy.
1 Standard Numark Trade Price, as of Feb 2017
2 Current Retail Price
3 Based on prices checked on-line in a range of mutiple pharmacies, as of Feb 2017