Some of the drugs on the $4 generic drug program sell for $80 at other pharmacies. How is Wal-Mart able to sell them for so little?
2007-03-20 07:11:15 · 5 answers · asked by Ken 2 in Business & Finance ➔ Corporations
It's a marketing ploy. MOSTof the drugs on Wal-Marts list already are at that low cost no matter where you go. They are also not frequently filled prescriptions, so they are not taking that large of a financial hit. Because Wal-Mart can't market their pharmacy with good customer service like others, they instead must use techniques like this to get people in. Wal-Mart has lost big market shares in the pharmacy sector for the past few years, and they are desperate to get those customers back.
2007-03-21 05:14:58 · answer #1 · answered by jaggedy2k 2 · 0⤊ 0⤋
A combination of loss leader, and the fact some of the drugs do cost the pharmacy that little. Old generic drugs make the most money for pharmacies.
2007-03-20 17:54:16 · answer #2 · answered by Lea 7 · 0⤊ 0⤋
They will fill most perscriptions with a generic brand which they buy VERY well. Picture the pills you got. Now picture a tractor trailer unit full of them. That's how Wal-Mart bought them. Cheapest way to buy is in massive quantity.
2007-03-20 18:55:07 · answer #3 · answered by Brad M 2 · 0⤊ 0⤋
They offset the costs by profits from other drugs. Their goal is to get you to buy other stuff while you are in the store.
In addition, it gets the weight of the US Government off of their back by making billions in profit while paying the low end of the pay scale to their non-union employees.
2007-03-20 14:22:12 · answer #4 · answered by Christmas Light Guy 7 · 0⤊ 0⤋
it's a marketing ploy called "loss leader." they eat it on somethings, knowing people will come in and spend money on other stuff.
2007-03-20 14:19:54 · answer #5 · answered by chieromancer 6 · 1⤊ 0⤋