Is Opening a Pharmacy Profitable?

Big bosses chase profits, small bosses enter to make a living.

Generally, the main requirement for opening a pharmacy is that the legal representative or company head must hold a licensed pharmacist qualification. You need to obtain licenses such as a Business License, Drug Operation License, Food Operation License, and a registration certificate for Class II medical devices. Typically, a store needs 3–5 employees, including one licensed Chinese herbal pharmacist and one licensed Western pharmacist. A 120-square-meter pharmacy requires at least 300,000 RMB in startup costs, with rent, renovation, and inventory accounting for the bulk of it. On staffing costs, store managers earn a base salary of 1,500–2,000 RMB per month, with the rest based on sales commissions; Chinese herbal pharmacists and medical pharmacists also earn around 2,000 RMB monthly, with herbal pharmacists making slightly more. Rent runs about 200–500 RMB per square meter per month, with a net profit margin of 10% and a gross margin generally between 25% (break-even) and 40%. Annual sales are usually only around 500,000 RMB.

So chain pharmacies are mostly publicly listed to spin stories and raise capital; making a living from it is tough.

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