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ehagedorn - > The Pulse -> The 'price cutter' cuts drug costs
The 'price cutter' cuts drug costs
I spent most of yesterday talking to people about Wal-Mart's new drug plan. The retail chain is selling about 300 generic drugs at $4 for a month's supply. They kicked it off Thursday in Tampa Bay, Fla., and it could reach the rest of the country by next year.

Here's the Associated Press story about the new discount, which we ran on the front page of today's paper. And go here for the list of drugs.

People had many different things to say about the $4 drugs.

“It sounds like some kind of gimmick," said Jeanne Shelton, 84, of Bakersfield. She was one of the many people I talked to at the Carriage House Estates retirement home.

“That would be good for me even, and I’m not getting up there like some of the people here," said Sandi Watson, 49, the retirement home's manager.

I also talked to many people at The Marketplace.

“They’re probably trying to compensate for what they do to their employees," said Aaron Brown, 35, of Bakersfield. A member of an electrician's union, he had qualms with the health insurance they provide to employees. Wal-Mart has relaxed some of its guidelines, and now part-time workers who have been there a year can get insurance. But the benefit carries a high deductible.

“Wal-Mart is doing what the federal government has failed to do," said Bruce Jones, 71, of Bakersfield, who was also at the Marketplace.

To see more of what people thought of Wal-Mart's new effort, go to Bakersfield.com and click on  "Would you go to Wal-Mart for $4 prescriptions?" under "Video."
Posted in these Groups:
Topics: health, prescription drugs, Wal-Mart
posted by ehagedorn on Friday, September 22, 2006 at 12:23 PM
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posted by anonymous on Sep 22, 2006 at 11:39 AM
300 yesterday, less today...by the time the discounts drugs are actually in the stores don't be surpriswed if the are limited to Smith brothers cough drops.

Wal-Mart for all it's hype is not in business to lose money and Santa Claus they are not, but they did bulid their number one status on PR.
Besides all their generics will be made in China.
posted by ehagedorn on Sep 22, 2006 at 11:45 AM
Interesting point. They admit that one of their tactics is lowering prices on some items, and potientially losing money on those products, so people buy more costlier goods. According to the AP story, they did this with toys.
posted by DonEnebo on Sep 22, 2006 at 02:20 PM
This is not Wal_marts first attempt to undercut all competition.  They have been found guilty in court in three states of "predatory pricing".  That is, sell below cost until competition is reduced or eliminated.  They are in business to make lots of money, and will not continue this loss leader forever.  And, I feel sorry for all the stores in the rest of the US who will be inundated by prospective customers who won't have read the fine print.  Find a WalMart, drive a long distance to it, stand in line, come back for Rx and stand in line again (perhaps to be told your drug is not covered by this ruse) and then go where someone cares about you, a real pharmacy.
Don Enebo, Kernville
posted by DonEnebo on Sep 22, 2006 at 02:23 PM
A follow-up.  There are 210 countries in the world that export prescription drugs.  Not all of these have very high standards.  Do you know where you medicine came from?
Don Enebo, Kernville
posted by ProgressivePete2 on Sep 22, 2006 at 02:50 PM
Yet another reason to shop at Costco. They actually have morals.
posted by ehagedorn on Sep 22, 2006 at 02:56 PM
I'm not a great fan of Wal-Mart by any means, but I think it's interesting that Wal-Mart is getting bashed for selling drugs dirt cheap. They do have a shady past, but cheap medicine is cheap medicine. If someone is sick and doesn't have much money, Wal-Mart could be a godsend.
Should Wal-Mart be praised for that at least or are they merely exploiting the needs of others?
posted by anonymous on Sep 22, 2006 at 03:23 PM
You are naive, if you believe that Wal-Mart,s intentions are honorable buy a few of those shares for that bridge across the Pacific. If someone is sick and doesn't have much money, tough luck....Wall Street 101.
posted by ProgressivePete2 on Sep 22, 2006 at 03:26 PM
I think it's like all their other super duper ultra low price items. What is it the gallon jar of pickles or was it something else they're famous for. Big stores like WalMart or the Grocery store have a few items that are dirt cheap so you go to their store. Then you look around a little bit and buy buy buy. Their intentions are ALWAYS profits.
posted by anonymous on Sep 23, 2006 at 06:02 PM

Just how long do you think WalMart would be in business if they did not turn a proft??Someone please give me a reason shareholders will allow a company to not post a profit??
posted by NancyII on Sep 23, 2006 at 06:58 PM

Most all businesses have loss leaders.  When you see that "All you can eat shrimp" or "All you can eat spaghetti" do you think they don't know that not all in your party will order that?  Milk and bread are two of the standard staple in your household.  Do you think it's out of the goodness of Longs heart that they have one of the lowest prices on milk?  I don't blame any business for wanting or needing to make a profit...otherwise, why are they in business?

I always liked that sign that says "This is a non profit organization, it didn't start out that way but that's how it turned out."  Reminds me of a couple of businesses I had.  No retail or wholesale business is in it out of the goodness or their heart..not even Costco.

What I DO dislike about WM is the bullying suppliers into cutting prices or quality.  On the other hand, they get the most press because they ARE the biggest.  The issue of them moving into towns and destroying small local businesses didn't seem to bother anyone when K Mart was top dog and did the same thing.

I'm not especially pro WM, but I am pro logic and common sense. 

posted by DonEnebo on Sep 23, 2006 at 09:05 PM
They are the biggest and account for about 90% of the trade deficit with China.  Yes they bully providers into selling under their terms and have run even large manufacturers out of business.  These business have in at least some instances sold their machines to a Chinese company at great loss.  And I think that the court decisions in two states that they are guilty of predatory pricing (selling below cost - not just a loss leader ) until there is no competition says it all.  This is no all you can eat spaghetti deal.  They want all the marbles.  Wait and see.
Citizen
posted by anonymous on Sep 23, 2006 at 09:33 PM

IF people want to spend more money for their goods, they are free to shop at places other than WalMart...

1

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