One
of the findings of the Competition Commission report was that the complex
system of manufacturers rebates and wholesaler discounts made it very
difficult for practices to calculate the true nett price of a POM. Therefore,
the Competition Commission recommended;
(VII) A requirement for manufacturers that supply POMs in the UK
to inform veterinary practices and pharmacies, not less than once every
three months, of the ex-manufacturer unit price(s) net of any discount
or rebate at which it's POMs were supplied to the veterinary practice
or pharmacy in the preceding period and, on request, to quote the ex-manufacturer
unit price(s) net of any discount or rebate at which any stated mix and
volume of products would be supplied in the next three months.
The
Problem
The manufacturers rebate information is only the starting point as veterinary
practices need to be able to combine the manufacturers information with
their wholesaler's price and discount structures to actually calculate
the true nett price. The calculation [see below]
is very complex and would have to be done for the 1,400+ POM and PML products
currently available.
| Vet Purchase Price | VPP | NVS Selling Price |
| Wholesaler Discount | WD | Only paid on discountable products |
| Rebate Via Wholesaler | RW | Paid as rebate credit note at end of month |
| Direct Rebate From Manufacturer | DR | Various schemes applied by manufacturers |
| Nett Price=((VPP-(VPP*WDT x %*DF) - (VPP*RW%)) * (1-WDSet%)) - (VPP*DR%) | ||
The Solution
NVS has produced a computer program which allows veterinary practices
to quickly combine the manufacturers rebate information with an up to
date electronic price list and then compare nett prices. The program is
not restricted to POMs but will allow a practice to compare all the 12,000+
products sold by NVS.
The
Nett Pricing Program allows veterinary practices to;
Download an up to date electronic price list. Download any
rebate scheme run by NVS on behalf of the manufacturers. Input NVS discounts Input the manufacturers
rebates down to product level. Set up product
groups to enable comparison of the nett prices between manufacturers Set mark ups
of either Veterinary Professional Price or nett Price Print out Nett
Price Lists Print out Sales
Price List |
The
program is only available to NVS trading practices, but is not tied into
our Vetcom ordering system.
It is part of the NVS Indices suite, which can be installed on any suitable,
powerful PC.
If you are interested in the Nett Pricing Matrix please contact your NVS
Territory Manager
or Judy Edwards on 01782
770319.