Wal-Mart expands its $4 prescription plan and adds $9 contraceptives!

[imported_Shivetya]

In all, the company said its $4 generic plan would now total 361 prescriptions, an increase of about 30 prescriptions. Because those include different formulations of the same compound, the number of different drugs in the program is actually less than 160.



Thats a great deal. It makes money in the long run for Wal-Mart as people will shop there for other items, many stores reporting 11% increases in sales since the programs started. It also benefits them in other ways as well at the obvious benefit to customers.

Unfortunately for me, to use my HSA, I have to jump through hoops as special interest groups have successfully convinced the Federal Government to not designate Wal-Mart and some grocery based Pharmacies as legitimate sources of medicine. Yeah - ain't that nice. Can't wait for "mandated healthcare" to occur, can you imagine being told where to buy your drugs? If the government already makes it a hassel for companies to compete with the drug stores can you imagine what will happen when these same companies keep undercutting government approved sellers?

 

[Hayabusa Rider]

I don't know how good a deal it is for walmart, but it does increase percentages of sales. It will take a lot of money to offset it's huge losses. That is something that they will endure since a primary reason for this is to extinguish competition.

 

[tw1164]

Originally posted by: Hayabusa Rider
I don't know how good a deal it is for walmart, but it does increase percentages of sales. It will take a lot of money to offset it's huge losses. That is something that they will endure since a primary reason for this is to extinguish competition.

The company said it decided to offer those drugs at $9 because they would not have been profitable at $4.

 

[tw1164]

On a somewhat related note


Wal-Mart gets greener with laundry detergent

Wal-Mart Stores Inc. plans to stock its U.S. shelves with only concentrated versions of liquid laundry detergent in an effort to save water, plastic and cardboard-- a move that could radically change the strategies of manufacturers.

 

[dmcowen674]

Originally posted by: Shivetya

Unfortunately for me, to use my HSA, I have to jump through hoops as special interest groups have successfully convinced the Federal Government to not designate Wal-Mart and some grocery based Pharmacies as legitimate sources of medicine.

Yeah - ain't that nice. Can't wait for "mandated healthcare" to occur, can you imagine being told where to buy your drugs? If the government already makes it a hassel for companies to compete with the drug stores can you imagine what will happen when these same companies keep undercutting government approved sellers?

Why so misguided?

The Interest groups didn't do any "convincing".

They bought and own the Government.

That's where your anger and attention should be instead of groaning about something that hasn't happened yet that you think Democrats will do.

It's the same crap as saying Gore or Kerry would've been worse.

Bunch of horseshit.

 

[CycloWizard]

Originally posted by: Hayabusa Rider
That is something that they will endure since a primary reason for this is to extinguish competition.

Target has been selling generics for $4 for quite some time, at least in St. Louis. In fact, they started it well before the local WalMart.

 

[Hayabusa Rider]

Originally posted by: CycloWizard

Originally posted by: Hayabusa Rider
That is something that they will endure since a primary reason for this is to extinguish competition.

Target has been selling generics for $4 for quite some time, at least in St. Louis. In fact, they started it well before the local WalMart.

Interesting. Still, it's the same idea. Based on what I know about the industry I'd say that for every dollar they take in their losing at least three, and probably more. It would be like GM selling 5k Cadillacs, but the difference being that Wallyworld and Target aren't solely invested in pharmacy.

 

[ElFenix]

Originally posted by: Hayabusa Rider

Interesting. Still, it's the same idea. Based on what I know about the industry I'd say that for every dollar they take in their losing at least three, and probably more. It would be like GM selling 5k Cadillacs, but the difference being that Wallyworld and Target aren't solely invested in pharmacy.

is manufacturing and distributing generics really that difficult?

 

[Hayabusa Rider]

Originally posted by: ElFenix

Originally posted by: Hayabusa Rider

Interesting. Still, it's the same idea. Based on what I know about the industry I'd say that for every dollar they take in their losing at least three, and probably more. It would be like GM selling 5k Cadillacs, but the difference being that Wallyworld and Target aren't solely invested in pharmacy.

is manufacturing and distributing generics really that difficult?

I don't believe Walmart manufactures generics.

 

[yowolabi]

Originally posted by: Hayabusa Rider

Originally posted by: CycloWizard

Originally posted by: Hayabusa Rider
That is something that they will endure since a primary reason for this is to extinguish competition.

Target has been selling generics for $4 for quite some time, at least in St. Louis. In fact, they started it well before the local WalMart.

Interesting. Still, it's the same idea. Based on what I know about the industry I'd say that for every dollar they take in their losing at least three, and probably more. It would be like GM selling 5k Cadillacs, but the difference being that Wallyworld and Target aren't solely invested in pharmacy.

Where are you getting your information from that wal-mart is losing money on these?

 

[ElFenix]

Originally posted by: Hayabusa Rider

Originally posted by: ElFenix

Originally posted by: Hayabusa Rider

Interesting. Still, it's the same idea. Based on what I know about the industry I'd say that for every dollar they take in their losing at least three, and probably more. It would be like GM selling 5k Cadillacs, but the difference being that Wallyworld and Target aren't solely invested in pharmacy.

is manufacturing and distributing generics really that difficult?

I don't believe Walmart manufactures generics.

right, but there is hardly any profit in being a generic manufacturer. walmart has probably squeezed the manufacturer(s) as much as they can. so, what is the cost of manufacturing and packaging a generic? with walmart's distribution system the distribution costs are near $0.

 

[Hayabusa Rider]

Originally posted by: ElFenix

Originally posted by: Hayabusa Rider

Originally posted by: ElFenix

Originally posted by: Hayabusa Rider

Interesting. Still, it's the same idea. Based on what I know about the industry I'd say that for every dollar they take in their losing at least three, and probably more. It would be like GM selling 5k Cadillacs, but the difference being that Wallyworld and Target aren't solely invested in pharmacy.

is manufacturing and distributing generics really that difficult?

I don't believe Walmart manufactures generics.

right, but there is hardly any profit in being a generic manufacturer. walmart has probably squeezed the manufacturer(s) as much as they can. so, what is the cost of manufacturing and packaging a generic? with walmart's distribution system the distribution costs are near $0.

So paying pharmacist and staff is free?
Even walmart isn't getting hundred dollar generics for free. The costs associated with filling a prescription before one pill is put in the bottle is more than $4.

And for yowolabi's information I happen to be a pharmacist, who once worked for Walmart.

 

[bctbct]

Originally posted by: tw1164
On a somewhat related note


Wal-Mart gets greener with laundry detergent

Wal-Mart Stores Inc. plans to stock its U.S. shelves with only concentrated versions of liquid laundry detergent in an effort to save water, plastic and cardboard-- a move that could radically change the strategies of manufacturers.

Probably saves shipping cost and shelf space.

 

[imported_Lothar]

Originally posted by: yowolabi

Originally posted by: Hayabusa Rider

Originally posted by: CycloWizard

Originally posted by: Hayabusa Rider
That is something that they will endure since a primary reason for this is to extinguish competition.

Target has been selling generics for $4 for quite some time, at least in St. Louis. In fact, they started it well before the local WalMart.

Interesting. Still, it's the same idea. Based on what I know about the industry I'd say that for every dollar they take in their losing at least three, and probably more. It would be like GM selling 5k Cadillacs, but the difference being that Wallyworld and Target aren't solely invested in pharmacy.

Where are you getting your information from that wal-mart is losing money on these?

They are.

 

[theeedude]

What Walmart is doing with prescriptions and clinics is probably the last hope of preserving the free market healthcare model, which will die if it doesn't bring costs under control, so of course the healthcare industry is fighting it.

 

[TerryMathews]

Originally posted by: Lothar

Originally posted by: yowolabi

Originally posted by: Hayabusa Rider

Originally posted by: CycloWizard

Originally posted by: Hayabusa Rider
That is something that they will endure since a primary reason for this is to extinguish competition.

Target has been selling generics for $4 for quite some time, at least in St. Louis. In fact, they started it well before the local WalMart.

Interesting. Still, it's the same idea. Based on what I know about the industry I'd say that for every dollar they take in their losing at least three, and probably more. It would be like GM selling 5k Cadillacs, but the difference being that Wallyworld and Target aren't solely invested in pharmacy.

Where are you getting your information from that wal-mart is losing money on these?

They are.

Maybe in only the strictest sense of the word. Wal*Mart is a publically-traded company. They simply don't do things that cost them money, overall. Wal*Mart, especially since it's once of the most aggressive companies today. The only reason they would be pursuing this bargain-basement generic program is that they see a net overall profit by bringing people in the store that will then purchase other items like clothes that have 100%+ markups.

All that said, my fiancee and I had to do the $4 generic thing recently since her health insurance co-pay is outrageous for prescriptions. We were looking at something like $200/mo, $23.50 at Wal*Mart and that's without claiming it against her insurance; we decided we'd save it for something we can't get a generic of.

Health care in this country is too much of "charge the people that can afford it so we can pay for those who can't." Great in theory but sucks if you're one of the ones that is just barely over the line. I hope the Wal*Mart effect spills over into other areas of health care.

 

[ElFenix]

Originally posted by: Hayabusa Rider

So paying pharmacist and staff is free?

i certainly didn't say that. distribution is the trucks going from the distribution center to the stores. a box of drugs can ride in some nook somewhere, costing walmart virtually nothing (as that truck was going to make that route anyway)

Even walmart isn't getting hundred dollar generics for free. The costs associated with filling a prescription before one pill is put in the bottle is more than $4.

i wonder what the cost of the drugs is

 

[Darwin333]

Originally posted by: ElFenix

i certainly didn't say that. distribution is the trucks going from the distribution center to the stores. a box of drugs can ride in some nook somewhere, costing walmart virtually nothing (as that truck was going to make that route anyway)

Yup. I am sure thats exactly how Walmart ships its pharmaceuticals


[/quote]
i wonder what the cost of the drugs is[/quote]

Do you have any clue the overhead involved in making prescription drugs? Sure, they are generics but they are still manufacturing prescription drugs. $4 probably doesn't cover the inspections, quality control, packaging and shipping.

 

[charrison]

Originally posted by: Hayabusa Rider

Originally posted by: ElFenix

Originally posted by: Hayabusa Rider

Originally posted by: ElFenix

Originally posted by: Hayabusa Rider

Interesting. Still, it's the same idea. Based on what I know about the industry I'd say that for every dollar they take in their losing at least three, and probably more. It would be like GM selling 5k Cadillacs, but the difference being that Wallyworld and Target aren't solely invested in pharmacy.

is manufacturing and distributing generics really that difficult?

I don't believe Walmart manufactures generics.

right, but there is hardly any profit in being a generic manufacturer. walmart has probably squeezed the manufacturer(s) as much as they can. so, what is the cost of manufacturing and packaging a generic? with walmart's distribution system the distribution costs are near $0.

So paying pharmacist and staff is free?
Even walmart isn't getting hundred dollar generics for free. The costs associated with filling a prescription before one pill is put in the bottle is more than $4.

And for yowolabi's information I happen to be a pharmacist, who once worked for Walmart.

Well walmart says they are not losing money on these $4 scripts. My guess is if they can make money selling their generic OTC drugs, they can probably do it with scripts as well. I dont know what is required to fill a drug behind the counter, but I doubt a pharmacist does not spend much time filling it. MY guess is they are bulk filled on site or bulk filled offsite and all the pharacist has to do is attach the label.

 

[Hayabusa Rider]

Originally posted by: charrison

Originally posted by: Hayabusa Rider

Originally posted by: ElFenix

Originally posted by: Hayabusa Rider

Originally posted by: ElFenix

Originally posted by: Hayabusa Rider

Interesting. Still, it's the same idea. Based on what I know about the industry I'd say that for every dollar they take in their losing at least three, and probably more. It would be like GM selling 5k Cadillacs, but the difference being that Wallyworld and Target aren't solely invested in pharmacy.

is manufacturing and distributing generics really that difficult?

I don't believe Walmart manufactures generics.

right, but there is hardly any profit in being a generic manufacturer. walmart has probably squeezed the manufacturer(s) as much as they can. so, what is the cost of manufacturing and packaging a generic? with walmart's distribution system the distribution costs are near $0.

So paying pharmacist and staff is free?
Even walmart isn't getting hundred dollar generics for free. The costs associated with filling a prescription before one pill is put in the bottle is more than $4.

And for yowolabi's information I happen to be a pharmacist, who once worked for Walmart.

Well walmart says they are not losing money on these $4 scripts. My guess is if they can make money selling their generic OTC drugs, they can probably do it with scripts as well. I dont know what is required to fill a drug behind the counter, but I doubt a pharmacist does not spend much time filling it. MY guess is they are bulk filled on site or bulk filled offsite and all the pharacist has to do is attach the label.

They still are losing money on it. If Walmart says they aren't losing money it's because they are trying to factor in increased floor traffic and sales of items not related to pharmacy, but the pharmacy itself is a loss leader.

 

[imported_Lothar]

Originally posted by: Hayabusa Rider
They still are losing money on it. If Walmart says they aren't losing money it's because they are trying to factor in increased floor traffic and sales of items not related to pharmacy, but the pharmacy itself is a loss leader.

Exactly.

 

[charrison]

Originally posted by: Lothar

Originally posted by: Hayabusa Rider
They still are losing money on it. If Walmart says they aren't losing money it's because they are trying to factor in increased floor traffic and sales of items not related to pharmacy, but the pharmacy itself is a loss leader.

Exactly.

Maybe, maybe not. I fail to see any reason why they cant break even or make some profit on high volume generic scripts.