Price benefits of Canadian pharmacies
Today we can see a tough competition between the US and Canadian pharmacies. There are certain reasons for that. At first, Canadian pharmacies hold a large share of the American pharmaceutical market. The prices on medicine in Canada are cheaper than those in the USA. Undoubtedly it attracts more and more customers. American pharmacies accuse their counterparts from Canada of using unfair competition methods.
This confrontation stems from the early 1990s.The trade between three countries – USA, Canada and Mexico – was limited because of the high tariffs on the imported goods. To facilitate mutual trade between these nations it was decided to establish the North American Free Trade Agreement (NAFTA). As a result the trade was increasing day after day. The imported produce crossed the border and the former tariffs were not imposed on it.
After establishing NAFTA the US industries had much more benefits from the trade than before. Furthermore they could outsource their production factories and works to Canada and Mexico, where labor and manufacturing costs were much cheaper, produce goods there, than send the finished output back to America and sell it at more expensive prices at home. Due to this, costs were decreasing and profit began increasing very fast. The same tendency was observed on the pharmaceutical market. The main competitors of American pharmacies were European producers that time. After moving their Research and Development departments to Canada and thereby cutting down expenses because of the cheap labor cost, US pharmaceutical became more succeeding.
But the success of American pharmacies was not long, because soon Canadian pharmacies began selling produced drugs at cheaper prices to American consumers. This happened, because Canadian drugs producers understood that they could lessen prices owing to low manufacturing and R&D costs. Moreover, the government in Canada regulated the price level on drugs. For example, an American customer would save approximately $50-$200 a month, if he buys drugs in Canada. Using these successful price tactics, Canadian pharmacies started selling cheap drugs to the American citizens and to the customers from other states via Internet or on the phone.
Import of the prescribed drugs from Canada is illegal in the USA. But drugs that can be used personally not more than for 3 months can be imported.
What is interesting is the fact that drugs which are sold in American and Canadian pharmacies are the same, because they are produced at the same plant. Canadian companies import a lot of raw and finished products from America. So it happens that American customers actually buy back the drugs, which were exported to Canada some time ago.
When the profits of Canadian pharmaceutical industry began rising, pharmacies started developing new trade tactics and methods of selling their products. Now they use mail order and the Internet to sell drugs to the buyers from other countries. The American pricing strategies consist in establishing prices at such a level that the buyers don’t realize what the real drug price is. This happens because the price of the drug includes, e.g., costs for the insurance. So a huge percentage of customers in Canadian pharmacies forms the uninsured buyers or the buyers from the countries with strict government regulation of prices. Thereby consumers need to pay not only for the drug, but also for the insurance in their home countries.
In the long-term period a high demand for the Canadian drugs can lead to the increase of prices in the country. It is forecasted that Canadian prices for drugs can become equal to the prices in America. But today it seems that Canadian pharmacies have chosen a right way to attract more customers and prosper.
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A great number of Americans can’t afford buying prescription drugs in the US because of the extremely high prices on it. Some people are living in fear that they don’t have an opportunity to buy the medications they need. Health care system of the USA can not deal with such problem. That is why a lot of people get the medications they need at Canadian pharmacies that offer the products at much lesser prices. Despite the fact that Canada and … Continue reading →
Canadian pharmacies possess a significant share in the pharmacy market nowadays. Accessibility of drugs and affordability of prices for them have attracted a lot of American consumers to Canadian market. US patients have many problems at home. Near 50 million of them don’t have an appropriate medical cover. Moreover, the costs for the prescription of a medicine in America are very high in comparison with other countries. Many people can’t afford it. So that Canadian pharmacies are so popular among … Continue reading →
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