Understanding your customer base will help you establish a pricing strategy. For example, if your pharmacy is based in a predominately affluent area your range and pricing policies should reflect this. If you are in a less affluent demographic then similarly your pricing and product range should be adapted to reflect the core customer base. You should give careful consideration to the breakdown of your demographics which can be done reasonably effectively by understanding pockets of housing.

For example, if within a one or two mile radius of your pharmacy there is predominantly lower value or rented housing with limited higher value housing, your core demographic is more likely to be of low affluence and your range should reflect this.

However, you should ensure that you don't alienate the minority demographic groups and consider how your range could be adjusted to meet all types whilst targeting the majority demographic.

Knowing your demographics can also help you to decide how much space to allocate to specific categories. For example, if there are a lot of families with young children in the area you may want to consider extending your baby care category or introducing a children's health section. Conversely where the population is predominantly elderly you could consider extending your range of vitamins, minerals, supplements and complementary health, bladder weakness and denture products. The opportunities are endless.