Rite Aid may be a popular pharmacy and quite convenient. However, it’s also one of the most expensive pharmacies around, according to Market Watch.
With that said, Rite Aid is not expensive for no reason. There are several reasons that contribute to the higher prices, so to find out what they are, keep reading!
Why Is Rite Aid So Expensive In 2023?
Rite Aid is more expensive, largely because the business isn’t about saving money. Rather, the company is more about convenience. Furthermore, Rite Aid usually doesn’t have much competition, which means that it doesn’t have to compete by lowering its prices. The company’s smaller size as a chain also causes its prices to be a bit higher in 2023.
If you’d like to learn more about the different reasons why Rite Aid stores are so expensive, keep reading this article for more useful facts!
1. They Have a Higher Margin
Margin is how much upcharge a company puts on its products. In other words, it’s the profit that the company makes on its products.
As you might guess, different companies set their margin at different rates, which greatly affects the cost of their product.
Some companies set them pretty low. For instance, Walmart only has a 10% margin, which allows the company to set its prices very low.
On the other hand, most pharmacies raise their prices much higher – closer to 40%.
Of course, we don’t know the exact margin of Rite Aid, but it’s reasonable to conclude that it’s quite high.
2. They Buy Few Products
Large companies can purchase a lot of products, which means that they get higher products. The more you purchase in bulk, the lower the price.
Walmart and other large companies benefit from these lower prices, allowing them to price their products lower.
Unfortunately, Rite Aid must purchase a smaller amount of products, forcing the company to pay more per item. Afterward, the higher cost goes toward company expenses.
For the most part, Rite Aid is simply not as large as Walmart, and its customers purchase fewer items from them.
3. They’re a Specialty Store
For the most part, Rite Aid is a medical specialty store, and is most well-known for its pharmacy.
However, Rite Aid also sells over-the-counter medications as well. Often, Rite Aid has medications that other places don’t have.
Because it’s a specialty store, everything is a bit more expensive at Rite Aid. You know that you’ll find all sorts of medications – but you are going to pay more for it.
4. There Is No Where Else to Go
Often, there aren’t many other pharmacies nearby for customers to go. Therefore, Rite Aid can afford to charge higher amounts, as there is not as much competition.
In other words, Rite Aid knows that customers will go anyway, since there aren’t many other places to go. Therefore, it charges higher amounts, because people will pay them anyway.
5. Rite Aid Is a Convenience Store
When you purchase something from Rite Aid that isn’t medication, you’re paying for the convenience of it being there with your prescription.
Rite Aid knows that no one goes on a whole grocery shopping trip at its store.
Instead, customers simply pick up a few things while they’re grabbing their medication.
People are often willing to pay more for an item that is bought in convenience than one that they purchase every week.
For this reason, Rite Aid often charges much more for its items that aren’t medication.
In other words, Rite Aid knows that the medication is what gets customers through the doors – not the prices. Therefore, the company doesn’t feel the need to charge lower prices.
6. Quality, Rare Items
Rite Aid tends to have some higher-quality items than other places. Therefore, it isn’t odd for the company to have unique brands that make better products that you can’t find anywhere else.
Therefore, because these items are rarer and often quality, they usually cost quite a bit more.
However, not only do the specialty items cost more, all the items in the store cost more simply because they carry the specialty items.
For instance, Rite Aid likely has some supplement brands that other stores don’t. If you’re looking for the best supplement, you might go there to get more choices.
However, all of the supplements will cost more, simply because these extra choices are provided.
Additionally, the online store for Rite Aid shows you just how many items are available.
7. Fast, Convenient Services
On top of selling medications, Rite Aid also provides a variety of other services.
Often, you can get a flu shot for very cheap, as well as other booster shots. Usually, these shots are inexpensive or even free.
One of the reasons these services are so cheap is that Rite Aid counts on you purchasing another, more expensive product while you’re there.
Therefore, because its services are often very cheap, Rite Aid charges more for its other products.
8. There are Fewer Generic Products
While most grocery stores have generic products on their shelves, Rite Aid has very few, and the generic products it does have are typically health-based, not food items.
Because there aren’t as many cheap, generic products, you’ll probably end up spending more in the end.
If you’re looking for just medication, Rite Aid may be a good option. However, other stores will usually have cheaper options for foods.
9. They Aren’t About Saving Money
While other stores may be about saving money, Rite Aid is not. For this reason, it typically doesn’t have extremely low prices.
For instance, Walmart is built around the idea that it has the lowest prices. However, Rite Aid simply is not.
Rite Aid is typically one of the most expensive stores in town. However, most customers don’t walk into their store thinking that they are saving money. That isn’t the point of Rite Aid.
Instead, Rite Aid is more about convenience. Plus, it typically doesn’t have much competition. Most towns just have a couple of pharmacies (not counting those found in grocery stores). Therefore, it does not have to compete by lowering its prices.