What a surprise with Costco and the goal here is to increase foot traffic in the stores and to cater to the businesses located near the Costco stores. Along with Costco there are independent pharmacies that will work with them with honoring the prices and this could be a benefit for the independent pharmacies too with additional customers as the big chains have taken over a lot of patients due to insurance contracts. BD
Independent Pharmacies Not Able to Compete with Big Chains and Fear Going Out of Business–They Don’t Have Same High Levels of Data To Sell to Profit- Attack of the Killer Algorithms Chapter 23
The new program offers prescription medicines through Costco's in-warehouse pharmacies or through a network of 64,000 independent pharmacies that have agreed to pre-negotiated prices, according to an article in Costco's membership newsletter, the Costco Connection.
The plan will save participants 10-15 percent over other prescription drug plans, according to the newsletter. Nippon Paper Industries USA, a 200-employee company based in Port Angeles, Wash., is among the companies that have signed up.
Costco is "leveraging [its] existing footprint to enter a new market and provide a more comprehensive suite of pharmacy benefits to small and medium-size businesses," said Ross Muken, senior managing director at ISI Group LLC.
Mr. Muken said Costco is looking at employers that are located close to Costco warehouses and is providing a benefit that the members would save money on pharmaceuticals by using the Costco stores.
The benefit for Costco is foot traffic.
If you can contract with employers, the hope is their employees would become Costco members.