Pharmacy Daily | Q&A with DCO founder, Ian Tauman

IAN Tauman is Director and founder of Direct Chemist Outlet, and also runs the buying group, Power Buying Group (PBG).

In this Q&A, Tauman (pictured) addresses common questions about the differences between a pharmacy brand and a buying group, and which option may better suit your pharmacy.

PD: What is the difference between a pharmacy brand and a buying group?

IT: A pharmacy brand is really a complete business model, providing access to superior buying terms, as well as a full suite of planned catalogues, national marketing, store layout guidance, planograms, and operational support.

On the other hand, a buying group essentially leverages collective purchasing.

It's great for pharmacies that want the savings, without adopting a unified brand identity or the full retail structure.

PD: Who typically benefits most from joining a pharmacy brand?

IT: Pharmacies with the size, location, and ambition to run a structured business model benefit most from being part of a pharmacy brand.

A brand works well when you can support the range and volumes needed to deliver consistent promotions and a strong retail offer.

With a pharmacy brand, you get end-to-end retail support - it's like having a roadmap for running your pharmacy so you're not reinventing the wheel every time.

That level of structure is something buying groups generally don't provide.

The strength of a national brand brings visibility, credibility, and promotional power that can draw in customers who may not have previously shopped locally.

PD: And who are buying groups best suited to?

IT: Buying groups are perfect for pharmacies that want to remain independent and unique while still benefiting from strong buying terms.

They can also be a valuable solution for stores that may already be aligned with a pharmacy brand that is not delivering the best commercial terms for their business.

Smaller-format stores may not have the space to support catalogue lines or the stock depth required by a brand.

For those owners, a buying group lets them keep flexibility and tailor the business to their local community, while still getting competitive pricing.

PD: Which would be best for owners who value independence?

IT: There are many different models of pharmacies, and it's about aligning your goals with the right platform.

If you want the benefits of a proven retail model with strong marketing support, a pharmacy brand can give you that structure.

But if your store requires more flexibility and the ability to tailor your business to local needs, a buying group may be the better choice.

PD: Finally, how should a pharmacy owner decide which option is right for them?

IT: Start by looking at your store's footprint, your growth ambitions and your appetite for structure.

If you want to scale, build recognition, and maximise retail efficiency, a pharmacy brand may be a stronger choice.

It gives you the tools, marketing, and consistency to attract new customers and expand your reach.

If, however, your store is a smaller-format store or your focus is on maintaining a unique local identity, then a buying group might suit you better.

The important thing is that both models exist to support pharmacies - it's just about finding the right fit.