Animals & Money: Online pet pharmacies cut into vet mark-up
Filed under: Saving Money, Shopping, Health
This year Americans will spend $43 billion on their pets, including $10 billion on over the counter supplies and drugs and another $10 billion on vet care (which usually includes prescription drugs). Every year we spend more and more on dogs and cats, but there's one area we can save some money: prescription drugs. Right now you probably just get your pet's drugs from your vet. You may be surprised to see how they are marking up the drug prices and how much you can save by going to a legitimate online pet pharmacy.
I found this out when my vet said my dog Jolly needed an iron supplement he would order. I waited days for him to get the $40 bottle in. Then I found it online for $10, no prescription needed.
Some old-fashioned vets don't have a huge mark-up on prescriptions or even prefer writing prescriptions to stocking medicines. But for many cash-strapped vets it's a big way to make money. That may seem like a conflict of interest -- and it's why people doctors can't sell prescriptions.
Just last month the vet business journal Veterinary Economics had a story "Six Tips to Rev Up Refills and Revenues." They've consistently advised vets to have a big markup on prescriptions and to charge a dispensing fee. They advise a minimum dispensing fee of about $20 and then at least doubling the actual cost of the drug. Vet consultants generally recommend that the rarer the drug, the bigger the markup.
In vets' defense, many use the high price on medications to make up for the low prices they offer on other services, which can run the gamut from low-cost spay and neuter to free nail clippings to discounts for people treating strays.
"My vet told me not to trust the online places because you can never guarantee what it's supposed to be," says my friend Christina.
The worst I've heard about these companies is that they re-import the drugs sold in Australia or Europe. Pet drug makers have a tight relationship with vets, so some won't sell to the online stores.
The biggest player is 1800PetMeds, which I've used and had no problem with. I've also used KV Vet Supply, which has a huge selection of supplements. My favorite is the largest online pet catalog in the United States, Doctors Foster and Smith. They're becoming a major player in online pet drugs. Two Wisconsin veterinarians, Dr. Rory Foster and Dr. Marty Smith, founded the company in 1983. I talked to them and they explained that a human pharmacist dispenses drugs and follows all the rules that human pharmacies do: he accepts calls or faxes from the vet or an original prescription, but no copies or faxes from the owner.
For vets, online pharmacies are bad news: not necessarily because they're dangerous but because they threaten what used to be a safe revenue stream. For pet owners, they offer cheaper prices. And even if a pet owner doesn't use them, they put pressure on prices everywhere.
Reader Comments (Page 1 of 1)
7-18-2008 @ 8:12PM
Gary E. Sattler said...
Thanks for this excellent information, Carol. You are 100% on the mark with this blog post.
The most important thing here is; even if a pet owner chooses to use an online source for pet pharmaceuticals, they should never make those purchases without guidance from a professional veterinarian.
The three sources you mention, all have good track records. I have never dealt with 1800PetMeds, but I have dealt with the other two suppliers as a consumer and as a former retailer of pet supplies. Both KV Vet Supply and Foster & Smith are first class operations with a very high degree of professionalism and customer care.
Another source of pet care supplies worth mention is, Valley Vet Supply. I have had good experience with them in the past also.
http://www.valleyvet.com/
Gary E. Sattler, former Wisconsin State Certified Humane Officer and former retailer of animal feed and supplies.
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7-18-2008 @ 9:47PM
Warren Shapiro said...
My wife is a vet and I can assure you she is not rich. She takes calls from her clients 7 days a week at all hours. She cares for each animal as if it were her own. She charges nothing for her phone time, which is considerable, she charges nothing for consulting with another vet when she refers patients out for special treatments or surgeries. She makes a few dollars when she prescribes medications. She would never over prescribe or prescribe simply to make money, that would be unethical, and most Vets have worked too hard to become a Vet to throw it all away for a few extra bucks. The vast majority of Vets became Vets because they love animals. They have a right to make money. Show me one item in any store that isn't marked up. Vets need to cover expenses and make a living like anyone else. People spend $25 to $125 (and more) on haircuts and hair coloring. Does anyone ever question what the markup is on that? How many years of schooling does it take to do that?
If you think it's so bad to make a profit selling medications, try calling your on line pharmacy in the middle of the night when your dog has diarrhea, see how that works for you!
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7-19-2008 @ 9:39PM
Floris said...
Warren
You are so right.
A visit to the vets may be costly, but most vets are NOT rich. My wife is a vet too - just the other day someone brought in a puppy that had fallen off the back off the truck (^&*@!! owners drove off with the dog on the truck bed) and broke its leg. Kids' mother had just died, dad had no money. They gave the dog a treatment that should have cost $1500 - full orthopedic surgery, the works. Didn't get a penny, but the children didn't lose yet another family member.
Yes, they mark up their meds - and it keeps the costs of everything else down. If they lose this income, something else will have to be more expensive to make up for it - vets graduate with college loans similar to medical doctors, but it will take them much longer to pay them off.
Everyone is looking to save a buck - but the money you spend at your vets is staying in your community for the benefit of the local pets. What happens to the profits some offshore company makes from selling you drugs online?
7-18-2008 @ 11:29PM
Floris said...
A visit to the vets may be costly, but most vets are NOT rich. My wife is a vet too - just the other day someone brought in a puppy that had fallen off the back off the truck (^&*@!! owners drove off with the dog on the truck bed) and broke its leg. Kids' mother had just died, dad had no money. They gave the dog a treatment that should have cost over $1500 - full orthopedic surgery, the works. Didn't get a penny, but the children didn't lose yet another family member.
Yes, they mark up their meds - and it keeps the costs of everything else down. If they lose this income, something else will have to be more expensive to make up for it - vets graduate with college loans similar to medical doctors, and they have bills to pay too.
Everyone is looking to make a buck, and save a buck - but the money you spend at your vets is staying in your community for the benefit of the local pets. What happens to the profits some remote company makes from selling you drugs online?
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