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Dr. Bill. I heard a story from a source I tend to trust

by Ziks511 / November 22, 2009 11:33 AM PST

about a prescription anti-fungal cream in the US. The pharmacist told the source that his wholesale cost for the cream was $4.00 a tube, but was required by the company producing it to charge $240.00 for the amount dispensed. Does this sound like fiction to you (it does to me) or does it sound possible or probable.

Note this is a request for information not a post to create irritation or conflict (sorry, but the last time I tried to just ask a simple question here it was turned into a bun fight and then the thread was locked).

Rob

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if the wholesale price is $4.00....
by grimgraphix / November 22, 2009 11:41 AM PST

... then the additional $236.00 is nothing more than profit in the pharmacist's income. Why would a pharmaceutical company require a retailer to make so much profit?

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There are producers of goods who forbid discounting of their
by Ziks511 / November 22, 2009 12:52 PM PST

products. I have run into it in the field of stereo equipment where I have acted as an adviser and discount retailer on the small scale. It's not an uncommon thing, but the enormity of this particular instance seems impossible to me.

Rob

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This could make no business sense
by Steven Haninger / November 22, 2009 6:11 PM PST

What could be the business reason that a pharmaceutical company would want to get 4 bucks and let the pharmacy get $236.00 in profit? There's more to this one if you could find it. I'd want to know what the competing products are and what the cost of these would be. Yes, some manufacturer's don't want their products discounted without permission...or, they want to be in control of any promotions offered. With your stereo equipment example, these are manufacturer's of higher end products that compete in a different market than the big box stores. Their customers don't and won't shop at Best Buy and they expect to pay higher prices. They customers aren't always more savvy but they do have more money and expect to pay more and will equate higher price with better quality and sound. For the most part, they are correct though the differences may not be audible to most. But, these high end audiophile companies rely on customer perception. Discounted equipment turns some of their buyers off and they can actually lose sales by price cutting.

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Can't comment on the specifics ...
by Bill Osler / November 22, 2009 7:27 PM PST

I seriously doubt that is accurate.

Without knowing which anti-fungal was involved I have no way of investigating either the wholesale or typical retail price. Minimum retail prices have been an issue in marketing of some consumer goods (esp consumer electronics), but I have never heard of such a practice in the pharmacy industry.

Even when manufacturers have imposed minimum retail prices it is hard to imagine they did it on terms so favorable to the retailer. It would not make sense.

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Make your own, cheap.
by James Denison / November 22, 2009 9:45 PM PST
Sulfur + Zinc Oxide

Mix together and you have the absolute best anti fungal action creme you could ever hope for. Works well on boils too.
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you can
by oldie and goody / November 23, 2009 1:47 AM PST
In reply to: Make your own, cheap.

buy anti-fungal cream OTC at a very reasonable price, so why pay 240.00 bucks for something you can get for about 7.00 And a lot less bother than making it.

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treat shoes
by James Denison / November 23, 2009 1:57 AM PST
In reply to: you can

If you take that desitin with the 40% zinc in it and put on your feet, then wear your shoes a few hours with no socks, you will never have those shoes get smelly or have fungus into them. It seems to permanently protect the shoes and your feet forever in that pair of shoes.

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never had that problem
by oldie and goody / November 23, 2009 2:40 AM PST
In reply to: treat shoes

my feet don't stink Wink

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(NT) I like this idea a lot.. Rob
by Ziks511 / November 23, 2009 9:30 AM PST
In reply to: treat shoes
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(NT) Your source sounds fishy
by C1ay / November 23, 2009 7:15 AM PST
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Yeah, I'm afraid so. It didn't make sense when I first heard
by Ziks511 / November 23, 2009 9:38 AM PST

a month or more ago, and the longer I think about it, the less sense it makes. Normal mark ups are around double the wholesale price, in other words a $4.00 cream should retail for $8.00. If it's a prescription item there will be a dispensing fee on top of that which may be $12.00. But that's about as far as it goes.

Rob

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maybe
by oldie and goody / November 23, 2009 10:20 AM PST

that person you trusted isn't so reliable after all?

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