@Snaplittledragon
I’m struggling to see why the pharmaceutical company would sell the same product for a higher price to vets and a lower price to online companies.
Is there any evidence anywhere to show that is the case?
All companies sell products at a lower price when they are able to sell that product in bulk.
Price per unit is often different depending on how many units you are buying and for how long you have committed to buy those units for.
Think about wormers.
A vet may buy 100 per month (I’m aware this number is not nearly correct, but is is being used for scale).
An online retailer may buy 1,000 per month.
Even with a smaller price per unit the online retailer prodvided a higher income for the wholesaler, to keep that client the wholesaler must provide a competitive price. The vet has little buying power, doesn’t provide the same level of income and doesn’t have the buying power to get lower price elsewhere, so there is less incentive to keep them as a client.
Once the wormer has been purchased the sellers have different costs.
Website
Website running costs
Storage facility
Depending on medication trained staff to check prescriptions
Wages
Insurance
The vet has
The building
Insurance
Specialist staff
Training costs
Equipment maintenance
It’s clear that the scale of running costs are must higher for the vet compared to the online retailer. To break even and make a small profit they must charge more or their business will ultimately fail.