A Prescription for Success

Increase sales without increasing overhead

February 27, 2009 | Edited by Ken Beaulieu

A case study on how one smart company grew its business without adding more staff or new equipment.

Problem: Pharmaceutical Direct, a direct mail marketing services support company in Randolph, N.J., offers a variety of specialized programs to pharmaceutical companies, including market research, gift packages for patients, and loyalty cards. The company, which started up in 1992, works with 15 of the top 20 pharmaceutical firms in the U.S.

But in a service business, continued growth also means continued expenses related to expansion. CEO Scott Puzia needed a business development strategy to take the company to a higher level without substantially increasing overhead. “I wanted to increase sales without increasing staff, purchasing new equipment, or expanding our facility,” he recalls.

Solution: Puzia decided to transition from a service company to a product-oriented business. And he chose to address a problem that costs the pharmaceutical industry $75 billion annually in lost sales: patients forgetting to take their medication regularly. “If we could [reverse that trend], pill sales would increase and profits would naturally rise,” Puzia notes.

So he developed Dose-Alert. The device has a visible clock and built-in alarm that adheres to the top of any prescription vial cap. It beeps when it’s time for patients to take their medication. Puzia also introduced a real-world test to demonstrate the efficacy of the product to his clients, and persuaded a national drugstore chain to offer the device to 10,000 patients taking a cholesterol medication. The pharma company selling the medication realized a 10:1 return on its investment.

Puzia is now selling Dose-Alert directly to consumers via counter displays in drugstores and point-of-sale displays in grocery stores. And he still has only eight employees. With Dose-Alert, Puzia is well positioned to reach the next level — and the next one after that.

Content courtesy of FuelNet.com