The price of goods

Published on Nov 22, 2020

A buddy of mine told me that he recently had a prescription filled and he paid cash instead of using insurance. When he went to the pharmacy, they asked him whether he had a coupon because the retail price was something like $2,000. He used a GoodRX coupon, and the final total was around $14. What a great example of how much of a racket drug prices are. 

What I found interesting is that the coupon indicated it should be around $12, but it was $14 because the coupon indicated 20MG but his prescription was for 25MG.

When I used to get prescription medication, I don't recall that there was a difference price based on the amount of active ingredient. When you go through insurance, you pay a copay, which only varies based on the "tier" of the drug and not the strength.

Take the example of bedding and sheet sets. You will pay more for a King set than you will for a twin set. This makes sense to me. 

Clothing is a different story. A small shirt is the same price as an XL, even though the XL uses more fabric and stitching. Same with pairs of shoes. It's the same price regardless of which size you get. Logically, it would make sense to me that a larger product costs more, if nothing else because of materials. Why does this pricing model exist? Is it baked in that people who require larger clothing shouldn't be discriminated against?