Change of guards

Tony Mottram joined Numark last November as its commercial director, a new role created by the interim managing director John D'arcy as he thought the business needed a 'second role for it to be effectively operational'. Not a pharmacist by profession, Mottram joined the pharmaceutical industry as a sales representative for Pfizer at the age of 22 and has spent the last 18 years working his way up at Ivax, Ashbourne Pharmaceuticals and Napp Pharmaceuticals, where he spent ten years.

Trained as a medic after joining the forces, it seemed a natural fit to follow a pharmaceutical path, according to Mottram. Wanting to go into a sales role, he also spent a few months at a bank, coming up to grasp with the requirements of the finance world before joining Pfizer.

Appointed commercial director at Numark – to ensure that the business operated the right way commercially, as he put it – Mottram answers questions related to the Nucare takeover, Numark's business model, how life will change following his promotion and the benefits pharmacists can obtain by joining hands with him.

The Adolf Merckle suicide made headlines soon after you joined Numark. Was that a difficult period for you and the business and was Numark as a business affected greatly?
The loss of anybody will have an impact on certain parts of the business at a senior level. However, we are a credible business in the UK as well as being sustainable. Phoenix might change ownership in the future, nobody can say yes or no at this point in time but I can confirm that it's a solid business as things stand.

Following your appointment as the managing director, how will your job change on a day-to-day basis?
It's a bit difficult to say what changes will be made right now. John D'arcy and myself, we worked closely and he gave me a brief of what he wanted. My job is in the title: managing director. I need to manage the business and ensure it heads in the right director and making sure people are directed in order to deliver what is required. As we move forward, I'll be working with the Numark board to ensure we head in the right direction.

When I joined, the team at Numark underwent a review of where we're at. We have clear aims, what is it that we're about and what we want to do. Each department has tactics that seem to be working well. I don't think I need to change anything if we're going in the right direction. There are a few things to develop and that is all work-in-progress. Our aim to create a profitable and sustainable independent pharmacy. But, as before, I won't be making any changes in the way this business is run as I believe we're heading in the right direction, aptly depicted by our membership numbers which are at its peak right now.

Phoenix took over Nucare in 2007. How easy was the transition for Nucare members and what percentage of members did you manage to bring into Numark?
We managed to retain 33 per cent of Nucare membership into Numark. For me it's irrelevant whether you're a Nucare member or a Numark member. You need to belong to an organisation which is going to lead and support you in the delivery of your business model. If you can't have a commercial deal with the wholesaler and if you're not prepared to move the wholesaler, then it is what it is.

A lot of pharmacists cited high membership fee as a reason for not joining Numark. How would you justify the £100 per month fee?
The £100 membership fee has been in existence for a long time. Nucare member wishing to join Numark were given discount but that was through a rebate. This fee is paid by 2,067 members and the members who access a range of services will get about £1,400 in rebate. You need to access what we offer in order to justify the fee. If you merely pay the fee and not engage and utilise what we can do for your business then you're not going to benefit.

How would you then convince pharmacists to join Numark?
The answer's quite straightforward. Independent pharmacy is in a massive place of change. It is very difficult at times to see the opportunity in front of you and develop your business locally to make it happen for you.

Numark offers a range of services and solutions which you need to engage in to maximise benefits. The more you access Numark, the fitter you and your team will become. It's a difficult time for pharmacy and we provide strategies that you can implement locally in order to be successful.

Our USP is the pedigree of delivery. We have sustainability in the business and have delivered to our members Some members leave because they don't see value in being a member. That is because they do not access what we do and provide. On the other hand, we get new members because they see a potential of what we can do for them.

Is there assistance provided to members when it comes to tendering for services?
We have provided assistance with a number of members on an individual basis, and with success. Our professional services team does a lot to support members who are in a position to commission for positions. It's something that as a model we're developing to offer to a broader base of the membership. Tender assistance includes key therapy areas such as vascular checks, diabetes care and weight management.

We will support individual members with individual service submission or tenders. The key thing is that we have members who understand how to develop a service and we have members who have a will to develop services but don't know how to do it. So we can help both types.

Merchandising has been cited as a key issue for pharmacists, something they don't pay much attention it. Does Numark offer support in that area as well?
Merchandising is indeed a key area. Pharmacists need to make themselves appealing on the high street and that is what will attract customers inside the shop. Once inside, whether it's consumer or around prescription side, the merchandising has to be spot on as providing relevant products in the right areas will increase basket spend. That is part of our role, to help improve the OTC element.

You mentioned appealing to customers on the high street. Has re-branding from a chemist to a Numark store helped increase sales?
Yes, it has. We collect data for re-branding and it not only increases the OTC sales but also affects prescription side of things as well. The model would suggest that the change has attracted new customers that have turned into patients. We have a team of pharmacy development managers whose job is to do a full business review for any member who wants to pay for that service. Out of that review, they'll get an action plan which will be marketing commercial and services. We analyse the complete pharmacy environment to competitors, surgeries and how the existing customers perceive the business to be. This business review is like a ten-step plan to improve their overall profitability and sustainability.

Do you get regular feedback from members and do you get time to visit them personally?
I have undertaken 64 member visits in the last three months. One thing I said when I joined Numark was that I'd be accessible as I work for the members. I don't sit in office and become unapproachable. I will see them and sit down with them and help them and my team make their business work for them. I need to be visible to members and I am. However, I also have a responsibility to direct the business in the right way so there might be a change in the number of visits undertaken as I am only one man. Having said that, I have a very strong and professional team with a very strong skill-set. Pharmacists aren't scared to approach me, and they shouldn't be. They pay a membership fee and if they knock on our doors and ask for help, we will do our best to provide that.

Does staff training come as part of Numark membership?
Training has been part of Numark's pedigree for years and years. We have always been a strong organisation in leading, training and developing people. We hold 32 training events per year which are free to members and their teams. The focus of these events lies on relevant skill-set and business needs. We give the owners some skills and knowledge to effect changes. They know how to dispense. Where they need help is being a manager, a coach and a leader. Sometimes they need help stepping back, refuse the urge to fix all the problems themselves.

Do members have a choice to buy from other places or are they restricted by a membership contract?
Membership is about choice. Our job commercially is to negotiate preferred deals with suppliers and source those deals. The member always has a choice where to buy their products from. But if we've done the right thing by negotiating a good commercial deal that gives profitability to members and business growth to manufacturers and suppliers, then it's a no-brainer they should be buying form our deal. If they choose not to then it goes back to what do I get from my £100.

We have compliant members who make in excess of £8, 500 per month in terms of rebate. They understand the model and deals we have and they lock into it. We negotiate on behalf of the members and we work for them.

What advice then would you give to pharmacists having problems in the current economic conditions?
Have a plan. If you don't know where you're going, you'll end up somewhere else. You need to find time to make a plan. Make sure you have the right staff, you train them well and develop them in the right way.

You don't need to constantly change plans. Have one eye on the climate and acclimatise to it. Only engage with new services if they are relevant to you, for example there is no point jumping on a bandwagon for diabetic service if you don't have diabetic patients. You need to asses whether it's relevant or not to your locality.

© Faras Ghani 2009
Published in Pharmacy Business June 2009