Pharmacy’s No Profit Strategy For Building Business

Discussion
Aug 02, 2004
George Anderson

By George Anderson

It’s been said that no good deed goes unpunished.

In the case of Kaylei Mosier, owner of Smith Drug Co. in McKinney, Tex., the cynical adage could eventually turn out to be true. In the meantime, however, doing the right thing
is getting Mr. Mosier and his business plenty of publicity and perhaps some new customers to boot.

Mr. Mosier, it turns out, decided he would sell prescription medicines at no profit to underinsured and uninsured customers. “It’s really not fair to the customers to take advantage
of them,” he told the Dallas Morning News.

Needless to say, Mr. Mosier doesn’t appear to have other retailers following his lead.

David Gonzales, director of public affairs for the Texas Pharmacy Association said he isn’t aware of any other pharmacy doing it for one big and obvious reason. “You have other
pharmacies that would question the wisdom of doing that from a profit standpoint.”

Carla Chandler, 42, is a new Smith Drug Co. customer. According to the Dallas Morning News report, two of the five medications Ms. Chandler takes are not covered by her
insurance. After calling pharmacies in the area and getting prices up to $240 to fill the prescriptions not covered by insurance, Ms. Chandler called Smith Drug and was quoted
a price of $16.68 with free delivery.

“My mouth dropped open. I said, ‘Excuse me, that can’t be right,’ ” she said. “If it wasn’t for them, it would mean we would have to go without paying one of our major bills.”

Local physicians have also taken notice of what Mr. Mosier is doing. McKinney urologist Jerry Frankel, said he recommends all his patients, insured or not, go to Smith Drug since
he found out about the pharmacy’s policy.

“You can’t make a living just taking care of uninsured people,” he said. “I’m trying to direct people with open minds and good insurance to go there as well.”

Moderator’s Comment: What are your thoughts on Kaylei Mosier’s decision to sell prescription medicine at cost to uninsured and underinsured consumers?
What impact do you think this will have on his business’ bottom line?

This adequately insured consumer would definitely make a point of shopping at Kaylei Mosier’s store if it wasn’t on the other side of the country. Next
time we’re in that part of Texas, we know where we’re going to go.

George Anderson – Moderator

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