With a 50 per cent rise in membership numbers last year alone, Salim Jetha, CEO and one of the founding directors of Avicenna, remains adamant that recession will have no effect on the business’ progress. Founded during the 1992 recession – which is why, according to Jetha, Avicenna’s performance improved during the unstable state of economy last year – it is recognised as UK’s largest independent pharmacy support organisation.
‘It was the commitment of the members played a part in starting Avicenna and that is a trend
that we have carried with us throughout the years at Avicenna,’ Jetha said. Commenting on the major increase in numbers during 2008, Jetha said: ‘Although the bulk of our growth comes via word of mouth, the acquisition of Nucare [by Phoenix in 2007] played a big part in us achieving those numbers.’ While the number of members have gone past 1,000, the profit share for the financial year 2007/08 is expected to be over £1million. With all members due to benefit from the figures – thus underlying the customers’ status in the company as the owners – members also benefited from a dividend distribution of over £180,000 given out in 2007.
Despite the recent growth, Raj Haria, director of sales and business development at Avicenna, emphasised that it was not numbers they were after but the quality and dedication of its members.
‘Although it may look nice on paper, we don’t want to build up our membership figures just for the sake of it but want commitment from members,’ Haria said. ‘We have normally been getting around 100 members per year for the past two to three years [except last year] and due to the numbers and commitment, we have attained the critical mass essential for development and growth.’
Although the growth has slightly altered Avicenna’s business plans, Haria has opted to look at it as a challenge and encouragement that the members need. ‘The type of growth we have achieved was not predicted and as it has carried on in the manner it started last year, we are not restricted by the plans we had made previously and envision the pattern to continue.’
While advising pharmacists to work towards the MURs and increasing the number and type of services they offer, Jetha reminded them to place special emphasis on merchandising their products on offer to come up with the level of sales they want. He also detailed the pre-registration tutor scheme that the business is offering in order to help the pharmacists as well as the individuals fresh out of education.
‘It is surprising how often we learn from fresh students,’ Jetha said. ‘While in-store pharmacists may not get the time to go through current trends and fresh ideas, these students need to stay abreast of it at all times. Therefore, it not only pays to have an extra hand in the pharmacy – reducing the pharmacist’s workload – but also a source of learning that is on hand at all times.’
Jetha also sent out a reminder to Avicenna’s members that despite not being able to match prices set out by bigger independent and chains, due to the size of its buying group, Avicenna is able to influence its suppliers.
In the event of a doubt, he advised his members to look at the business’ logo: members sending in their input to the headoffice and in return, they get the benefits.
© Faras Ghani 2009.
Published in Pharmacy Business Feb 2009.
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