DRIVE-UP PHARMACY: A

customer picks up an order at Medicap, 1020 N. Kingshighway. Drive-up windows are features of Medicap pharmacies. Other area Medicap pharmacies are in Scott City, Chaffee and Jackson.

When pharmacist Ben Tally wanted to go into business for himself he contacted Medicap.

When the Amrhein Pharmacy and Drug Store closed in Scott City, Brad Amrhein wanted an operation to offer a new concept in pharmaceutical services. He called Medicap.

Tally and Amrhein are among the more than 80 people who have looked to Medicap Pharmacies Inc. as a means of improving their competitive edge in the pharmacy business.

"I had thought about owning my own business since I was in pharmacy school," said Tally, a Southern Illinois native. "After 16 years I decided it was time to go ahead with my dreams or forget them."

Tally, who was pharmacist at Super D Drug Store in Cape Girardeau for 16 years, said he read about Medicap in a trade journal and contacted the firm.

"One of the concepts of Medicap is the drive-up window," said Tally. "I had thought about this type of operation. I started talking with Medicap and here we are."

Here for Tally is Medicap at 1020 N. Kingshighway.

Amrhein joined the family pharmacy and drug store business upon graduation from pharmacy school.

"When the family discussed closing the business after 40 years in Scott City, I looked into other options," he said. "Medicap was one of those options."

Amrhein's Medicap operation is at 2220 Main in Scott city.

"We offer drive-up services and fast mail-order service from our location," said Amrhein. "Medicap is a great company to be associated with."

Amrhein was the first immediate-area pharmacist to open a franchise operation with Medicap in November 1987. Others in the area now include Tally's, which opened in June 1989; Jim Teegarden's at Chaffee, which opened in April 1989; and Darrell Hanschen's in Jackson, which opened at 515 W. Main in July 1989.

Teegarden converted Tee's Prescription Shop into a Medicap operation, and Hanschen, a Jackson native, opened a new Medicap.

"We've built the Medicap company with a well-defined service strategy in mind," said William C. Kimball, president of the firm, which is headquartered in Des Moines, Iowa. "Our stores are designed as intimate, professional settings as opposed to a mass merchandising atmosphere."

Kimball was in Southeast Missouri and Southern Illinois last week.

"We wanted to visit some of the existing operations and look at potential sites for the future," said Kimball. "We have 82 franchised stores in 15 states, with nine more in varying stages of development. Our goal is to have 100 stores by the end of 1992."

Twenty years ago Medicap Pharmacies Inc. was little more than a dream. Kimball, who has a degree in economics, is president, and Russell Johnson Jr., a second-generation pharmacist, is chairman of the board and chief executive officer.

The company was founded in 1971 by Johnson. "I was always impressed that my father knew all of his customers," said Johnson. "I admired the way my father patiently explained the usage of drugs that were prescribed."

Johnson saw the appeal of small, professional pharmacies but also recognized that chains were gradually overtaking many independent operations.

"The advantage of a franchise system is that it puts us on a more equal basis with the chains in name recognition, buying power and marketing programs," said Kimball. "As a franchise we can also compete for (health maintenance organization) and other third-party payment contracts, which are often not awarded to independent operators.

"We have established our own niche in the pharmacy field," said Kimball. "Most of the overhead in traditional drug stores is in the non-pharmaceutical side. We help eliminate overhead by concentrating on the pharmacy, stocking only health care products.

"We believe that adding cosmetics or gifts would dilute our identity as a medication provider and educator," said Kimball. "Most of our stores will range between 750 and 1,000 square feet, and most include drive-through windows for easy prescription pick-up."

Kimball said prices are competitive with those of large, chain organizations. "Store owners have the advantage of owning their own business, with the advantage of chain-buying," he said.

"We give the owners all the business and marketing tools they need to be successful," said Kimball. "Customer care is the foundation of our business and the basis for survival in today's economy."

Franchise business is big business said Kimball. He said 35 percent of all sales in the U.S. are made by franchise stores. "Business experts predict that by 2010 more than half of the sales in this country will be made by franchise stores," he said.

The Medicine Shop, which also has operations in Southeast Missouri, including Cape Girardeau and Sikeston, is the nation's largest pharmacy franchising company, with more than 900 stores nationwide.

Kimball, who likens Medicap to Avis of the rental car business, said, "We're number two, but we try harder."