Cost-plus pricing's limitations can result in missed revenue opportunities and a failure to maximize profits. Value-based pricing can be a more effective strategy.

Cost-Plus Pricing One of the most common strategies, cost-plus pricing involves calculating the total cost of producing a product or service and adding a markup.

Cost Plus Drugs has a similar pricing formula, which includes a drug’s manufacturing cost, a 15% markup, a $5 pharmacy labor fee and a $5 shipping fee.

It’s not clear how or if CVS will maintain its prescription profit margin on the cost-plus structure. The PBM industry is large, and many could resist the transparent pricing model.

GoodRx launched Community Link, a new cost-plus pricing program that allows independent pharmacies to contract directly with GoodRx.