Factors influencing prices offered to pharmaceutical purchasing groups

Purchasing-group characteristics that influence pharmaceutical-vendor pricing are discussed. A questionnaire about pricing practices and a self-addressed stamped envelope were mailed to bid managers of vendors in November 1985. The bid managers' attitudes toward the effect of various characteristics of purchasing groups on prices was determined by calculating the mean response to each of a group of four questions about pricing practices. Of the 269 questionnaires distributed, 161 (59.8%) were returned. Of these, 115 were usable. Three vendor groups were established from demographic information: Pharmaceutical Manufacturers Association members (44.3%), generic manufacturers (13.9%), and wholesalers (41.7%). Bid managers agreed that the following characteristics would influence lower prices: single group membership, market conditions, group size, adherence to contracts, and volume commitment; they disagreed that the time of year during which bid solicitations are conducted would affect prices. Further studies are needed to correlate actual pricing practices and the opinions of vendors regarding factors influencing pricing.