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CVS is has a high/low pricing scheme, so most of the items you see aren't being purchased at full price and people really only buy them on sale. You have to pl
by sct202 7y ago
CVS is has a high/low pricing scheme, so most of the items you see aren't being purchased at full price and people really only buy them on sale. You have to play their games with stacking ECB, coupons and sales though, so it's work.
- behringer 7y agoI had to stop buying at CVS because of this, it was driving me crazy. I would pick up some over the counter medication and it'd ring up for an extra 5 or 10 bucks. Just walked out one day and now I get my medications at walmart or my closer neighborhood pharmacy.
- sct202 7y agoOh yeah they put stuff like that stuff on BOGO all the time, which just shows how much they're marking up the normal price if they can give you a free one and still make money.
- cvsthrowaway64 7y agoKeep in mind that Walmart is able to beat everyone in price not by having less of a markup but by purchasing in huge volumes to get a lower wholesale price to begin with. Off the top of my head our typical store margin is between 20-30%. So yes, pretty high. That doesn't tell the what the company actually pays I'm sure. But markup isn't where we make the money. Most sales, and particularly BOGO are loss-leaders to get people to sign up for the loyalty card. That's where the money comes from because now we have your phone number and email address and purchase history to sell. Every one of those coupons that prints on the receipt is a paid advertisement. CVS gains by promoting those products. By gamifying coupon use. And those ExtraBuck coupons aren't discounts but more like short-term microloans that CVS keeps the interest on.