More than a spoonful of medicine
Business merger a survival kit
IN 2004 when new, crippling medicine and dispensing price regulations were being introduced, the head of an emerging major pharmaceutical chain predicted the “extinction of small retail pharmacies” in South Africa. Since then, large corporate-scale pharmacies have proliferated around the country, but smaller retail operations, such as Port Elizabeth’s long-standing Provincial Westbourne Pharmacy, have adapted and evolved to make it in a highly competitive pharmaceutical environment.
Arguably one of the Bay’s most outspoken pharmacists and co-owner of Provincial Westbourne Pharmacy, David Rubin, 51, last week unpacked the challenges and the keys to successfully operate an independent pharmacy business in Nelson Mandela Bay at his bustling Mount Croix premises.
Rubin, who is also a popular and avid Bay surfer, was educated at Theodor Herzl High School before he went on to earn a degree in pharmacy at Rhodes University in Grahamstown.
Having gone on to accrue extensive experience outside of Port Elizabeth in related fields, including having served as a medical rep and as the managing director of an Asian pharmaceutical firm, he later returned to Port Elizabeth where he bought his father’s 40-year-old Westbourne Road-based pharmacy.
Almost 10 years ago, Rubin partnered with Bay pharmacist and pharmacy owner Roger Gilson to form Provincial Westbourne Pharmacy – which now operates as a full-service pharmacy.
The business employees about 10 staff members which includes two pharmacists and a qualified nurse who provides consultation services on the premises, along with a number of delivery drivers.
“Despite perceptions of easy money in this industry, there are a number of significant challenges in running an independent pharmacy.
“Pricing, for medicines and dispensing is regulated and makes a huge impact on profit margins. In some respects and in terms of medicines, its a volume game, meaning that you have to move significant volumes to make a decent margin,” said Rubin, adding that his business merger had been important to his survival.
“Pharmacies have had to adapt beyond their traditional functions around medicine or face closure. So now you a wide range of other goods – from cosmetics to soaps and gifts being retailed in pharmacies.
“We have adapted our business model to include relatively unique product offerings. The first is that we specialise in walking aids and we also provide wheelchairs.
“The second is our role as a national first aid distributor. Simply put, this means that we supply regulation first aid kits to customers such as shops, factories, offices and importantly, to the marine industry,” he explained.
Rubin named customer-relationship building, inventory management, the stocking of the right products and the pharmacy’s busy delivery service as key factors to the business’s success.
“Our services also include an automated delivery system for those on chronic medications. We also still provide an assessment and consultancy service to customers with ailments. Naturally, if anything that falls out of out scope, we refer the customer to a doctor. In this regard, we obviously still provide a valuable service to public in that we can save them a large amount of money in doctors fees.
“So while there are a number of challenges facing independent pharmacies today, there are many rewards in that we provide a valuable service to the community, and particularly to the elderly,” Rubin concluded.