Working out drug prices

[pharmer7]

Really stupid question, but I really have to learn, as it is always left to me, and I have never been taught.
E.g. if someone wants price for Malarone, the chemist & druggist has a trade price, but what mark up is applied (VAT,etc) ? is there a standard, or is it varied according to the company?

[bobbin]

Really stupid question, but I really have to learn, as it is always left to me, and I have never been taught.
E.g. if someone wants price for Malarone, the chemist & druggist has a trade price, but what mark up is applied (VAT,etc) ? is there a standard, or is it varied according to the company?

There is no standard method of pricing private scripts, it is entirely at the discretion of the proprietor. If the patient is unhappy they can try elsewhere!

Mark up varies but it's often around 30% for low value items but less for expensive items. Some pharmacies add a fixed dispensing fee and/or a percentage mark up. Many pharmacies have a minimum charge eg. about £3.50 to £5.00.

Private scripts (except veterinary scripts) do not include VAT.

For generics, mark up is often applied to the Drug Tariff price, rather than the wholesale price, although this varies. C&D prices are used to calculate prices for branded meds.

The large multiple pharmacy groups have standard methods of calculating private script charges, which is sometimes done by the dispensary computer.

At an independent, you would have to ask the owner/pharmacist/manager.

[johnep]

Standard mark up is 50%, ie trade price x 1.5.
If not a private script, then VAT applies and price is trade x 1.725.
johnep

[shan]

If using proscript, the use function Ctrl R, then feed the product you want to dispense. It will give you the price to charge. Otherwise follow what Johnep says ;-) Simple

Shan

[LeftArm]

Ctrl R will work assuming that the settings are correct for your pharmacy in the first instance and does not take account of higher priced items possibly having a lower margin. I'm also not sure which cost price is used list price or tariff which can make a huge difference.
Bobbin's answer is right there is no fixed rule. We would charge cost (tarriff) x 1.5 + £1.50 minimum £5 but if you ask for a competitive quote for antimalarials for a family of 4 we would be able to quote a much lower margin.