Wholesalers:
The most questions we receive are from members asking how they can get a better deal from their wholesalers. Our first step is to find out where they are at now & what they are paying (Cost Matrix)
The biggest problem we find is that the stores are purchasing from multiple vendors. 25% from this wholesaler, 30% from another wholesaler & the rest from various vendors. This used to work many years ago, but not any longer. It may be hard to believe but wholesalers through their infinite wisdom have gotten their backs against the wall. Their main profit revenue is Generics. Brand name profits will not pay their bills so our much needed wholesalers must insist that you buy a high percentage from them in order to obtain the best pricing available.
With the above said, let me add that no wholesaler or distributor will have the best price for all products all the time. The nature of our business does not allow this to happen -- especially the generic manufacturers who set pricing without any rhyme or reason. Look at the Metoprolol fiasco that occurred because one manufacturer had their product recalled & left the only available manufacturer the opportunity to triple pricing overnight without any warning.
Answer to the question:
Sit down with your Keystone endorsed wholesaler or Keystone representative and just ask -- What pricing will I see if I give you 90% of my purchasing? (save some room for cherry picking because that is what we do).
We negotiate our endorsed wholesaler every year and we watch the market-place. Pricing to stores is primarily determined by three factors:
- Volume
- Generic Purchasing % - presently averages 10-16%
- Payment terms
If you have any questions as to where you are now, just call our office.
We are here to help you.
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