Why is CVS so expensive? (7 reasons)
CVS is one of the largest healthcare retailers in the United States with a mission statement of providing exceptional customer service to keep customers coming back.
However, CVS regulars have noticed that CVS products can be more expensive than other retailers and may wonder why. I did my research and here are 7 reasons why CVS is so expensive!
Why is CVS so expensive?
1. Convenience cost
Some argue that the main reason CVS charges more for its products is their convenience.
CVS offers a variety of essential products and services, such as medications, and is generally located in locations within easy reach of customers.
Because CVS stores are open so close to customers, it means that CVS charges more for convenience, knowing that customers are willing to pay to save time from having to travel farther to get essentials.
2. Open 24/7
Not only are many CVS stores located in convenient locations for customers, but they are also open 24/7 or with extended hours.
This means that CVS stores are very convenient for customers and an easy way for shoppers to stock up when they need it.
So CVS can charge more for products they know their customers want and buy out of convenience, which is why they are the more expensive retailer.
3. All in one place
By offering a range of products such as pharmaceuticals, basic household items, and even seasonal items, CVS ensures its customers have everything they need in one place.
CVS realized that its customers would rather pay a little more to conveniently shop for their essentials in one place than make the trip twice.
As a result, CVS offers a variety of products at slightly higher prices because they know customers will pay for convenience.
4. Higher wages
CVS offers its employees a higher starting salary than most of their competitors, making them a great company to work with.
To ensure they can afford to staff each store with the right number and still generate a profit, CVS charges more for its products.
In this way, CVS is able to support their employees by offering a better living wage, while still ensuring they are profitable to keep the business running.
5. CVS Extra Care
CVS offers shoppers a proprietary program called ExtraCare to help them save money in stores.
With 74 million members, the CVS program is designed exclusively to help frequent shoppers save money at CVS stores.
CVS ExtraCare members can earn 2% back on purchases and receive exclusive discounts and coupons through the program.
CVS’ ExtraCare program allows customers to save money, and the frequency with which they offer discounts helps customers combat high prices to get a good deal.
6. Rewards Program
CVS also offers free rewards programs like ExtraCare Pharmacy & Health Rewards and ExtraCare Beauty Club to offset some of their expensive merchandise.
These programs are free to join and allow shoppers to earn coupons that help them save money at CVS.
Since CVS often offers discounts and coupons, online workers say their initial prices are more expensive to guarantee they still make money after discounts are applied.
CVS Pharmacy also accepts rewards programs like GoodRx and GoodRx Gold, which means customers can save a lot on everyday medications and merchandise if they participate in the program.
GoodRx is free to use and easily accepted on CVs, so it’s a great way to help shoppers save money.
7. Cheaper than the competition
While it may seem like CVS is more expensive than its competitors, online shoppers say they’re actually one of the cheapest retailers out there thanks to CVS coupons and convenience.
Because of the proximity, CVS saves shoppers money because it means they don’t have to travel far to get groceries, since many of their retail competitors’ stores are located further afield, which means customers Must visit them.
So while competitors offer lower prices, they’re effectively charging the same as CVS once travel costs are added in.
To learn more, you can check out our related posts on CVS Coupon Policy, Why CVS and Walgreens Always Go Together, and CVS’ Competitive Advantages.
in conclusion
While at first, CVS may seem like one of the more expensive retailers due to the convenience and extra cost of access, savvy shoppers can save a ton of money at the retailer.
CVS customers can save even more money by using coupons and CVS rewards programs like ExtraCare or third-party rewards programs like GoodRx.
So while CVS may appear to be one of the more expensive retailers, customers actually have plenty of opportunities to save money while shopping.
