News Archive
2007
October 2007
Tough challenges continue to face pharmacists 10 Oct 2007
HIP still growing - now at 33 nationwide 10 Oct 2007
HIP Runaway Bay opened by Peta-Kaye Croft 10 Oct 2007
HIP at Griffith Careers Fair 10 Oct 2007
HIP holds workshop on financial and retail management for members 10 Oct 2007
Ex Woolies MD and Guild President to address HIP members conference 10 Oct 2007
Two new team members at HIP 10 Oct 2007
Excerpt from Brian Keen's "Guide To Buying A Pharmacy" - Creating Your Personal Business Plan 10 Oct 2007
August 2007
Health Information Pharmacy group hits 30! 01 Aug 2007
Kevin Rudd opens Health Information Pharmacy Morningside 01 Aug 2007
HIP welcomes two new team members 01 Aug 2007
Excerpt from "Guide To Buying A Pharmacy" - Finance 01 Aug 2007
HIP in the news...
"HIP group's pink fit" Pharmacy News 24 May 2007
"Pharmacy gains weight" Pharmacy News 24 May 2007
29.05.07
Comment - May 2007
This month we have a number of new initiatives to announce, all of which are closely linked to our mission to secure the future of pharmacy. Whether you are a customer of a Health Information Pharmacy, an existing member or someone considering joining the group, there has never been a better time to be with us!
Update on HIP Health Solutions
Securing the future of pharmacy
This month the Health Information Pharmacy group will roll out the second of its Health Solutions product/programs in HIP stores across Australia - Healthy Heart. As with the 'Health-e-Weight Program', which has already begun trials in stores, Healthy Heart will be a product/program only available in HIP pharmacies. More Health Solutions product/programs are planned later in the year.
09.05.07
HIP new brand set for Queensland launch
HIP Morningside in Brisbane is set to host the launch of the new HIP brand in Queensland. The date for the launch evening has not yet been finalised, but is planned for early next month. The launch will be an opportunity to hear HIP CEO Ken Lee talk about the future of the brand and also a chance to see at first hand how the new store design complements the HIP philosophy and approach. Look out for your invitation shortly in your email inbox.
09.05.07
HIP introduces new fee structure for smaller pharmacies
The launch of HIP's new Health Solutions range has enabled the group to review the suitability of the HIP model for pharmacies valued at less than $1.5M. As a result HIP has launched a new fee structure for these pharmacies where the initial and ongoing franchise fees are substantially reduced. For pharmacies valued at up to $1M the initial franchise fee is cut to $45,000, with a sliding scale applying for pharmacies valued between $1M and $1.5M. Pharmacies joining on the new fee structure will still be eligible for up to $80,000 worth of free shares in HIP's parent company, Health Corporation and will be backed by the current HIP profit guarantee. This fee structure applies to all pharmacies joining HIP by 30th June 2007. If your pharmacy is eligible and you would like more details, please call us now on 1800 457888.
09.05.07
First HIP store reports continuing strong growth
HIP Castle Hill, HIP CEO Ken Lee's own store and the first to implement the HIP systems and philosophy five years ago, is continuing to report strong growth. Recent results show a growth in sales of 27% and a 32% growth in Gross Profit for the first quarter (January-March 2007) against the same period last year. This growth has been driven by continuing effective implementation of HIP systems and procedures and a recent focus by the team at the pharmacy on companion selling and driving membership of HIP's loyalty club, the Platinum Care Club. Castle Hill, in Sydney's Greater West is a very competitive pharmacy marketplace, making HIP Castle Hill's results a notable achievement.
09.05.07
Comment - April 2007
The first three months of the year have been a very busy period for HIP - parent company Health Corporation listed on the ASX on 21st December last year and 2007 has seen the beginning of the rollout of the new HIP brand and preparations for the launch of the first of a new range of HIP branded health solutions - see more on this below. With the addition of HIP Goulburn Street and HIP Epping in Sydney, HIP Terrigal on the NSW Central Coast and HIP Newmarket in Brisbane, group membership now stands at 28 pharmacies.
At the recent APP conference we made our theme 'Securing the future of pharmacy' and two recent announcements have only served to remind us of the importance of this theme. The first was the report in Pharmacy News recently that a representative group of pharmacies saw a 17% drop in net profit in 2005 against the previous year (see below). The second was the recent Choice survey claiming that 24 out of 30 pharmacists failed to deliver the minimum counselling required to dispense Xenical.
The awkward truth is that if pharmacy is not seen to be delivering correct counselling and advice to customers there will be limited justification for maintaining industry regulation, and a 17% drop in Net Profit will be the least of the industry's worries.
Photo: Recruitment Manager David Bateson congratulates John Lim, the new owner of HIP Newmarket
APP 2007 - Highlighting Pressure On Margins And Benefits Of Group Membership
Last month the APP 2007 conference and exhibition on the Gold Coast was an opportunity for us to take the wraps off the new HIP branding and talk about what we see as the major threat to pharmacy in Australia - shrinking margins in the dispensary. At HIP we believe to combat this threat you must build a differentiated offer based on health solutions - and APP was also where we launched the first of our health solutions product/programs, Health-e-Weight (more on Health-e-Weight and HIP branded health solutions below).
One of the clear messages coming from the APP conference was the need to be in a 'group' to be able to run profitably and survive the current and ongoing pressure on margins. A recent article in Pharmacy News (1st March 2007 p29) highlighted a 17% decrease in net profit in the financial year 2004-2005 as against the previous year - and this was despite sales increasing by 6.3%. Pharmacy as a whole also increased its reliance on PBS income as dispensary sales increased to 69.2% of turnover.
Photo: HIP stand at APP 2007
04.04.07
Health Solutions - Securing The Future Of Pharmacy
If you came along to APP then you will have seen not only our new store brand, but also our new weight-loss product program, Health-e-Weight. This is the first in a series of branded health solutions HIP will be rolling out over the next 12 months.
We use the term health solutions as these are not simply products, but product programs where HIP customers will enrol in programs and receive consultations in the pharmacy during the course of the program they are following. This mechanism has been shown to be effective both for the customer in achieving their goal, whether it be losing weight or giving up smoking etc, and for the pharmacy in terms of increased business, not only from the product/program itself, but also generally, across the board. .
With PBS revenue flattening and margins decreasing it is vital that there are other profitable revenue streams within a pharmacy which fit the philosophy of the pharmacy - HIP branded health solutions fill this role. .
The HIP 'Health-e-Weight Program' will start trials this month in HIP stores, with a full rollout across the group planned in June.
04.04.07
New Team Members
The last few months have seen the team at the support office grow to meet the demands of an expanding franchise network and those of running a public company: Lyn Mizzi and Pili Stone joined accounts and Jodie Golden recruitment as Settlements Officer. In March Stephanie Bennett joined HIP as Franchise Development Manager.
Profile - Stephanie Bennett
Stephanie graduated as a pharmacist in New Zealand and went on to work as a pharmacist and retail manager in Wollongong and Sydney for fifteen years. She then went on to work as a rep for Glaxo and started her first business running a field force for Blackmores before buying her first pharmacy in 1999.
Here she found a passion for pharmacy and retailing, buying a second pharmacy three years later and introducing compounding and herbal remedies as well as developing a weight loss program based on the CSIRO diet and an in-store and online parents club.
Stephanie joins the HIP team as Franchise Development Manager and is responsible for the new range of health solution product programs shortly to launch in HIP pharmacies.
04.04.07
HIP Leverage Finance
Leverage Finance is a wholly owned subsidiary of Health Information Pharmacy's parent company Health Corporation; it was set up to assist with finance for the purchase of pharmacies by members and prospective members of HIP. With many pharmacies in Australia currently valued at between five and six times EBIT (Earnings Before Interest And Tax - broadly equivalent to Net Profit), it is not easy to get into pharmacy ownership. At the moment a number of financial institutions will lend up to 80% of the value of the pharmacy - meaning that for a pharmacy valued at say $1.5M the purchaser has to find $300K in equity plus possibly a further $100k to cover stamp duty, loan applications, and other professional fees, etc - a total of nearly 25%.
Leverage Finance helps identify suitable lenders for 80 to 90% of the value of the pharmacy (to pharmacists opening an HIP pharmacy), and for suitable sites it can often provide a further secondary loan of 10 to 20% of the purchase price to assist with equity and other acquisition costs. This means the purchaser may only have to find $150k from their own sources instead of $400k.
To find out more about Leverage Finance call Brian Keen on 1800 457888.
04.04.07
HIP Referral Program
Do you know somebody who would make a great HIP pharmacy owner? If you do then you could be eligible to benefit from our referral program. At the moment when a pharmacy joins HIP, the owner (or owners) receives bonus options in our parent company, Health Corporation. If you refer someone into our group who is interested in becoming an owner with us, you are eligible to receive options in Health Corporation as well. Call our Recruitment Team on 1800 457888 for details.
04.04.07
Event Calendar May-June
Free evening seminar - '7 Reasons Pharmacists Join HIP' (Sydney/Brisbane)
- Wed 30th May
- Wed 27th June
To book click here
Health & Beauty Show (Sydney) Fri 15th- Sun 17th June
04.04.07
