Long a fixture in Old Metairie, Majoria Drugs celebrates 55 years in business this year. Originally founded by Tony Majoria just down the street from its present location on Metairie Road, the store was purchased by one of its pharmacists and moved to its location in 1985. At that time, it also expanded from pharmacy-only to offering a variety of health, household and food products.
Pharmacist Al Spitale began working full time at Majoria in 1988, and has seen the changes in the marketplace that are putting pressure on independent pharmacies. From a high of around 2,000 prescriptions per day, Spitale and his team are now filling only around 700. While online sales are part of the problem, the bigger issue is low reimbursements from both private insurers and public entities like Medicare.
Essentially, it comes down to an issue of economies of scale — large drugstore chains have purchasing power that enables them to get better prices from the drug manufacturers. These same chains, through entities they own called pharmacy benefits managers, also help set the reimbursement prices for prescriptions. This means sometimes independent pharmacies like Majoria are being asked to accept less than their cost for medications.
“Walgreens can take that kind of a hit much better than I can,” Spitale observed drily.
Legislation at the state level — which includes an effort to move to a cost-plus basis for reimbursements — is something Spitale believes could save stores like his.
In the meantime, however, Majoria is taking a variety of measures to address the problem. Among their 25-30 member staff, multiple buyers work to secure the best prices for every item in the store.
“We try to find the least expensive American wholesalers,” Spitale said, noting, “You make your money when you buy a product, not when you sell it.”
The store’s prominent location at Metairie Road and Bonnabel Boulevard is an asset, as is the ample parking. Majoria’s longevity means that many customers represent second- and even third-generations of family patrons.
While Spitale noted that “there’s no telling where someone’s going to show up from,” he estimates that 70% of his clientele comes from the surrounding Metairie area – which is evident in the way virtually all the customers smile and greet each other.
Fast, personalized customer service is another key part of the solution. With three pharmacists on staff, “you can walk up and talk to a pharmacist right away,” Spitale said, adding that most prescriptions are filled in 15 minutes or less.
Like the big chains, Majoria also offers flu shots and other immunizations, along with health and personal care items, skin and hair care, vitamins, small medical devices and testing kits, as well as household goods and snack foods. It also stocks local favorites like king cakes and Hubig’s pies.
It’s been a good business, but its future is uncertain.
“Every independent is struggling with being reimbursed right now,” lamented Spitale. “If they don’t do something about the situation, I doubt we’re going to be here in five years.”
Losing these kinds of neighborhood institutions would be a real blow to the character of the New Orleans area. In the meantime, Spitale’s approach to survival is straightforward.
“We always strive to give the best service and the best prices,” he stated, “and we do it with a smile.”
Majoria Drugs
1805 Metairie Road, Metairie
504-835-7211
majoriadrugsmetairie.com
@majoriadrugs1805
