Do you want to know how much blood banks make and pay staff? If YES, here are 6 factors that determine the profit margin on a pint of blood. In order to have an idea of the amount a blood bank is expected to make, you should clearly define the service offerings of a blood bank. A blood bank is a facility or enterprise that collects and stores human blood from blood donors or those selling their blood for use by hospitals.
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How Much Do Blood Banks Pay Their Employees?
There are different category of workers that work in blood banks but on the average, an employee in a blood bank earns approximately $17.55 per hour and $43,201 per year.
A phlebotomist earns about $15 per hour and about $31,528 to $42,822 per year; Medical Technologists earn about $27 per hour and about $59,530 per year; while Certified Phlebotomists earn about $16 per hour and $42,822 per year. Supervisors in a blood bank earn an average income of $34.20 per hour, or $71,136 per year. Please note that with incentives, the earnings can vary anywhere from $81,048 to $98,735
How Much Money Do Blood Banks Make on a Pint?
With that in mind, we can estimate what a Blood Bank is expected to make but note that a pint of whole blood fetches about $100, but broken into various components, might bring in $190, depending on the region in which it is sold. Plasma, valued for its relatively long shelf life, is what remains when the platelets and oxygen-carrying red cells are removed from blood. One can extract about $55 worth of it from a pint of whole blood.
It is important to point that there is no one-mold-fits-all when it comes to how much a Blood Bank is expected to make. There are some factors that we are going to look into before giving an estimate of how much an average blood bank makes yearly and these factors are;
6 Factors That Determine How Much Money Blood Banks Make
1. The Capacity of the Blood Bank
One cannot conveniently state the amount a Blood Bank is expected to make yearly if you do not know the capacity of the Blood Bank. As a matter of fact, you cannot equate a Blood Bank that is just starting out in business with a well – established Blood Bank that offers robust services.
2. The Location the Blood Bank is Covering
We must not rule out the fact that the location the Blood Bank is covering is a major factor that will determine the amount the blood bank is expected to earn monthly and yearly.
The truth is that you will struggle to make good money operating a Blood Bank if you locate the business in an area filled with low income earners or in a ghetto or a place that you can hardly come by a medical facility. If you locate your Blood Bank business close to the hub of clinics or an area with loads of hospitals and medical facilities, you are likely going to make good returns from the business.
3. The Management Style of the Business
Another key factor that will determine the amount a Blood Bank is expected to make yearly is the management style of the business. Trust me, the results you will get when you have a good manager will be far different from a Blood Bank with a poor manage. The idea is that a well – managed Blood Bank business will not just retain their old customers; they will also keep getting new customers especially through recommendations.
4. The Business Approach of the Blood Bank
There are different business approaches that a Blood Bank can choose from and no doubt it will greatly influence the amount they are expected to make monthly and yearly. Of course, we know that Blood Bank business may decide to work alone and do their marketing alone, and they can also decide to partner with other businesses that will recommend clients to them.
It is easier to find Blood Banks partnering with The American Red Cross which happens to be the nation’s largest blood supplier, hospitals, clinics and NGOs and other key players in the medicine practice industry. In essence, a well – organized Blood Bank that works with others will surely make more money than a solo business.
5. The Advertising and Marketing Strategies Adopted by the Business
Another key factor that will determine the amount a Blood Bank can make yearly is the advertising and marketing strategies adopted by the business. Trust me, there are several advertising and marketing strategies that can help a business increase their earnings, but you may be expected to spend more.
But the results you will make will far outweigh the amount you spent on advertising and marketing. Of course, you don’t expect a Blood Bank – business that is engaging in aggressive advertising and marketing to make same amount yearly with a Blood Bank – business that is passive with its advertising and marketing.
6. The Number of Years in Business
In business, the number of years you are in existence will go a long way to determine the amount you will make especially if the business is well – managed. This is because over the years, you would have been able to gain the trust of your customers and it will be easier for you to always have them coming back and also recommending clients to you.
For example, in your first fiscal year (FY1) you might make two hundred and twenty thousand dollars ($220,000), in your second fiscal year (FY2) you might make two hundred and fifty thousand dollars ($250,000) and in your third fiscal year (FY3) you might make three hundred and fifty thousand dollars ($350,000).
In conclusion, record has it that the Red Cross’s blood services division last year had $741 million in revenues and $14 million in tax-exempt “profits,” meaning excesses of revenue over expenses. Total revenue raised for its relief services was about $945 million last year. Community blood banks, which are not-for-profit organizations, operate like small businesses with a board of directors and president.
Mr. Doddridge, head of a community center in St. Petersberg, Fla., as well as current president of the association, estimates that most independently licensed centers have revenues of $50,000 to $500,000 and retain 5 percent to 10 percent of revenues in not-for-profit excesses.