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Drugs, Big Business and Community Service: Kicking the Chemists in the Margins

Pricing over-the-counter medicines

The supermarkets reckon they can sell that brand of pain relief for 80p, when under RPM they had to sell it for no less than £2.09. That would equate to a price cut of over 60%. Lemsip can be expected to sell at a 45% discount and Centrum vitamins for one-third less.

The RPA outlawed agreements between suppliers and dealers to set minimum prices. It is also unlawful to refuse to supply to dealers believed by a supplier to be cutting prices. Interestingly, a supplier is entitled to withhold goods from a dealer pricing them as loss leaders. So perhaps it's OK to sell Anadin at 80p, but at 8p, it may be considered a price cut too far.

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