Dive deeper into why pharmacies should look beyond price tags when shaping their pharmacy purchasing strategies.
In the dynamic realm of pharmacy management, the primary focus often centers on the bottom line. Pharmacies consistently seek cost-efficient solutions while grappling with pivotal decisions that significantly influence their operations. This leads to a crucial question: is opting for the lowest-priced product every time the ideal approach? In this blog post, we will dive deeper into why pharmacies should look beyond price tags when shaping their purchasing strategies.
The Primary Vendor Agreement Dilemma
A critical factor that can make the lowest-priced option less attractive is the primary vendor agreement. Sometimes, the vendor may want the pharmacy to buy a product that is not the cheapest among their product mix. This mix includes interchangeable and generic equivalent products.
Understanding the cost difference between buying compliant items within the primary vendor agreement and purchasing from secondary vendors is crucial. An effective pharmacy purchasing strategy will require weighing the cost of compliance against the potential rebate and cost of goods discounts. In some cases, compliance can prove to be more financially advantageous for pharmacies, as the rebates may outweigh the savings from sourcing a product externally.
SureCost calculates all the math behind those factors to help pharmacies make the best purchasing decisions. Read more >
