The hidden costs of buying a pharmacy

I've had enough. I genuinely feel like I'm jinxing myself each time I say the transfer seems to be finally drawing to a close as I've been saying it for months and months. I'm desperate to obtain a completion date so I can organise things by opening up necessary medical accounts, utility accounts, telephone lines etc. I can't even get broadband installed until the current owners terminate their's and then I can apply which can take 3 to 5 working days. I've been desperately waiting on the council to send a hardcopy of the approved lease and licence to the vendor's solicitors and in turn to mine, but it still has not reached the hands of my solicitor for signing. The council's in-house solicitors, who've caused ridiculous delay, have asked for £1,500 in fees – MY cost.  I tried arguing that it was ludicrous to demand that given the unnecessary delay they've caused but they simply refused to send the finalised lease documents until payment was made. Given I could not afford further delay, where did that leave me but £1,500 lighter. They then continually delayed posting the hardcopy despite being paid last week and it came to a point where I had to demand for courier today to personally collect the documents and deliver them to the vendor's solicitors. On the topic of costs, my solicitor is drawing up her fees which I'm not looking forward to since this whole process has dragged out more than anyone could have imagined, but the one I'm really bracing for is the bank's solicitors fees which are also my cost. Last week, I had a gentleman pop around to give me an estimate on a shop fascia, as I would obviously need to change the name. Since the current sign is a newer style with a back-lit box, I simply want someone to replace the stencil or thin front plate of lettering and replace it with my chosen pharmacy's name, but I've been told I'd need to replace the whole thing costing more than £2,000. I thanked him and wished him a pleasant journey home! So if anybody knows of anyone who can simply replace the front stencil part of a new fascia box please let me know as I'm still looking. I then called the PMR and Multepos companies informing them that I would ‘soon' be taking over and therefore wished for a quote to change the licence into my name and discuss turn-around times. The PMR would simply need to be changed from a ‘multiple' oriented system to an ‘independent' one. Now I'm sure this cannot be that difficult, given the software is practically the same and all the hardware will remain the same, but I was quoted a DISCOUNTED fee of £4,500 for a full swap over! £4500! I informed the current PMR software company that I just wanted the software licence to be changed into my name, but they insisted that even a ‘software only version' would cost £1,300 plus their monthly fees. Luckily I'm still living at home whilst locuming six days a week and so I can just about afford to save and pay these last-minute costs, but it continually seems like I'm throwing money in a bottomless pit at the moment. These are costs I had not imagined would mount so high and even articles/books hadn't highlighted the extent to or quantified what these costs can be. I can truly now see why people, especially with fixed financial commitments, are reluctant to purchase a pharmacy business, as costs can seem to add up beyond expectation. Most of these costs are the same despite the price of the pharmacy, but as I am not buying a pricey high turnover pharmacy, these costs are relatively large given my budget. Anyone looking to purchase a pharmacy, especially a lower turnover one, make sure to account for these costs, as they seem to occur right at the end of the transfer, usually when you've spent most of your savings.  

Hi Ravi

I've been following your progress with interest and enthusiasm. Trust me it was no different when I first started on my own, 25 years ago - and I still remember the highs and lows, the frustrations and the excitement.......

I haven't regretted it once! The feeling of empowerment from "running your own show" makes it all worthwhile.

One of the several reasons we established the Independent Pharmacy Federation was to support young pharmacists into ownership and to provide some mentorship.

Take a look at www.theipf.co.uk

If we can help, just shout!

Good luck


Graham Phillips, Director, Independent Pharmacy Federation

Hey Ravi,

I think you have great drive, passion and enthusiasm to go ahead with opening a pharmacy. Just got to hang in there, a positive mind set and helpful resources as Graham Phillips kindly presented is what helps. Thanks again for your highlight into such an important topic into the world of pharmacy, always a great help and insight.