California Business - Volume 3, Issue 1 - Northern California - 9

company like IPM, with service that's miles ahead of the
competition, they don't go back," Collins says. "In fact, we
haven't lost a single customer."
Walking	the	talk
While Collins advertises in trade journals, participates
in trade shows and hosts educational lunch-and-learn
sessions to promote IPM's brand among health care
consultants and third-party administrators, he credits
consistent service delivery with a rise in referrals, a
burgeoning customer base and sales growth from $4.2
million in 2009 to $70 million in 2013.
"I can spend an hour telling you what I'm going to do,
but what matters is whether I do it," he says. "If you keep
your promises and do what you say you're going to do,
the word spreads. Referrals are our biggest source of new
customers."
Initially, just a few companies took a leap of faith and
jumped to the startup. But new clients have heard about
IPM's growing reputation and are making decisions based
on trust, abandoning unsatisfying relationships with their
current vendors and creating significant gains in IPM's
market share.
The development of trust is particularly important in
service industries because of the abstract nature of most
service products. Research shows that customer service
and consistent execution of promised deliverables lead to
client trust in the service provider.
And even with its offerings of agile plan designs,
responsive management teams and outstanding service,
IPM's rates are highly competitive with those of bigger
PBMs, further motivating prospective clients.
"Nurturing client relationships and building our
reputation within the benefits community have been key,"
Collins says. "As we've proven that we can be successful,
more and more companies have been interested in our
business model."
Working	with	CB&T
Although Collins was able to bootstrap IPM, he overcame
the initial fears and uncertainty of launching a startup by
obtaining a line of credit from California Bank & Trust
(CB&T). With the ability to tap the line if needed, and
the support of a dedicated bank, he had the confidence to
fulfill his entrepreneurial dream.
"I reviewed my business plan with the management team
at CB&T, and they were very supportive," Collins says. "CB&T
handles all of our banking needs because they provide
outstanding service, and as someone who appreciates
excellent service, I can't tell you how much I value CB&T." *

Snapshot:
Integrated Prescription
Management
A pharmacy benefits manager that processes and pays
prescription drug claims for employers and insurance
carriers, develops and maintains contracts with
pharmacies, and negotiates discounts and rebates with
manufacturers.
Headquarters: Fresno, California
Founded: 2009
CEO: W. Troy Collins
Website: www.rxipm.com
Annual	revenue: $70 million
Employees: 38
Three-year	growth	rate: 358 percent
PBM	industry	by	the	numbers	
Companies: Approximately 100
Revenue: $300 billion
Employees:	127,830
Average	annual	growth	rate: 3 to 5 percent
Origin: PBMs date back to the 1970s.
Market	concentration: The top four PBMs account for
65 percent of industry revenue.

For more information: www.rxipm.com

California Business * 9
California Business - Volume 3, Issue 1 - Northern California

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