Recently, I had to make multiple trips to Walgreens and CVS to get some medication for my wife.
And I felt and learned a lot of things.
First, I am so thankful to God that our family has been very healthy and rarely went to a pharmacy.
Second, I am thankful that we have pharmacies so we can heal. I am also thankful for large pharmacies that keep the price low.
But today, I felt that cost-cutting is not always the best. The first cost cutting that I saw was labor. Wow, the pharmacist looked so busy and stressed..whoa- And it takes forever to find someone to help you. In essence, the labor cost that is saved is passed on to the customer as a search cost. The search cost can be lowered by checking online with Google but Google is not always accurate about the inventory. The pharmacy website is more accurate. So always use the firm’s website to locate your products!
This is better but I can’t imagine for elder people who are not good with the web or apps. No wonder some elderly couple did not look happy. Given that older folks take more medicine, CVS/Walgreens may think how to help them out. Or this could be an idea for a more friendly pharmacy, like Trader Joe type pharmacy.
I am thankful that CVS/Walgreens save me money through efficiency but search cost is not low- In essence, now the customers better figure out how to get the surplus by searching better.
Another interesting business model that I found was that the pharmacy is at the back so we get exposed to so many things before reaching the pharmacy. Also, it is so hard to find stuff because the signs are small 😦
But- we still come to CVS/Walgreens. Because it is cheap and many are open 24 hrs-
Oh- order stuff online and buy from Costco unless you really need it NOW! Much cheaper-
There is definitely a premium in CVS/ Walgreens.
Overall, I learned a lot today- I learned about CVS/ Walgreen busines model. And I very thankful that they exist-
Thank You Jesus for a blessed day 😀