According to pharmacy retailers, as small businesses struggle to keep costs low, RATs (rapid antigen tests) are skyrocketing in price. RATs are offered for about $10 by a significant supplier, while a wholesaler in Sydney’s west charges $15 per test.
Consumer watchdog ACCC said take-home test kits should be between $3.95 and $11.45 when bought from wholesalers after the federal government banned markups of more than 20 percent.
Pharmacist Curtis Ruhnau says that it will be impossible to keep prices down once he receives the shipment of tests. Additionally, he said they are paying ridiculous prices since they’re paying up to $15 wholesale plus GSR per test.
Curtis explained how they have to raise prices to cover costs like rent, wages, and overhead to survive in the pharmacist industry. Thus, it has become tricky because they do not want to be accused of setting new prices by their customers.
In his opinion, pharmacists feel like they are on a tightrope because they have to cover their daily expenses and cater to the needs of their customers by setting realistic RATs prices.
“Even if it means not making a profit from the sale of the tests, I’m doing everything I can to maintain a low price,” he said.
Ruhnau said it wasn’t just about making money now since they had to cover business costs to remain in business. It does not profit them because their main objective is to get more people tested with fewer hassles about money. They are putting other people’s lives ahead of the profits they could be making by hiking RATs prices.
Why are RATs prices increasing?
DR. Bi Mian, a RATs importer and kit distributor for over a year, is the person to ask this question. He has built strong relationships within the market through his work within the kit distribution industry. He contends that the enormous import costs and the additional compliance layers are driving up the price on retail shelves.
Mr. Mian believes that the high price is due to Australia’s slow uptake of RATs. According to him, the factory in China was charging $1 to $1.50, and that’s the price you’ll get when you export to the EU or Southeast Asia, where retail prices range from $5 to $6.
He added that refrigerated freight costs mean the tests are between $US5 and $7 once they reach Australia for most of the tests made in China.
According to Dr. Katharine Kemp, an expert in consumer law, prices will likely decline as supply increases. She argued that business owners could pass on legitimate costs when charging customers. It means that the price of these RATs can be set based on these costs
