The end of Price Guides: What you need to know

Find out how the end of indicative public pricing will affect pharmacists and consumers, and what it means for the future.

Understanding the End of Public Indicator Prices

From September 1, 2025, the Pharmaceutical Products Tariff (the "Tariff") will no longer display indicative public prices for all products whose prices are not regulated, such as dietary supplements, cosmetics, and other similar products that do not fall under strict price regulation.

This decision, which has been extensively debated and analyzed by industry experts, marks a significant turning point in the pharmaceutical sector. It aims to eliminate the persistent confusion caused by guide prices, which are not uniformly followed by companies and pharmacists alike.

Indeed, these guide prices, often perceived as recommendations rather than obligations, have led to price disparities on the market, creating uncertainty for both professionals and consumers. By abolishing these guide prices, the aim is to clarify the pricing landscape, enabling pharmacists to set their own sales prices in line with their costs and commercial strategies, while offering consumers greater transparency and a better understanding of the prices charged.

Which products are affected?

The products affected by this change are mainly dietary supplements and cosmetics, which represent a wide range of products used daily by many consumers to improve their well-being and appearance.

These products, often seen as essential elements of the personal care routine, include vitamins, minerals, herbs, proteins, moisturizers, lotions, make-up, and many other items that are not subject to strict price regulation. On the other hand, medicines for human use, whether reimbursable or not, are not affected by this change.

This is because their maximum public price is set by the Minister of the Economy, guaranteeing a degree of stability and accessibility for patients who depend on these treatments for their health. In addition, reimbursable products that are not drugs, such as certain specialized medical foods and active dressings, are not affected by this change either.

These products benefit from a regulated price set by INAMI, the Institut National d'Assurance Maladie-Invalidité, which ensures that prices are fair and affordable for patients requiring these products for specific medical reasons. This distinction between products affected and not affected by the end of indicative public prices is crucial to understanding the impact of this reform on the pharmaceutical market and on consumer habits.

Why is this change necessary?

A number of factors have prompted this decision, each playing a crucial role in the need to reform the current system. Firstly, some companies have stopped communicating indicative sales prices, making this information not only obsolete but also misleading for consumers and industry professionals.

This lack of clear communication creates an information vacuum that complicates the task of pharmacists and consumers seeking to make informed price comparisons. Furthermore, wholesalers and distributors, who play an essential intermediary role in the supply chain, apply their own commercial margins.

This practice, while legitimate, contributes to the increased complexity of the pricing system, as it introduces additional price variations that are not always transparent to end-buyers. Finally, some pharmacists, through lack of information or habit, continue to mistakenly follow guide prices as if they were fixed prices.

This erroneous approach limits their ability to adjust prices in line with actual costs and market conditions, which can lead to a significant reduction in their profit margins. As a result, these pharmacists find themselves at a disadvantage, unable to maximize profits or react effectively to market fluctuations. This situation underlines the urgent need for a reform that would allow greater flexibility and transparency in pricing.

Impact on pharmacists and consumers

For pharmacists, this change represents a significant opportunity to better manage their profit margins by enabling them to set their own sales prices autonomously. With the freedom to determine prices, pharmacists can adjust their pricing strategies in line with purchasing costs, local market conditions, and consumer preferences. This gives them the opportunity to optimize their profits while remaining competitive.

However, this new freedom could also lead to an increase in pricing complexity, as pharmacists will now have to take into account a multitude of factors to establish fair and attractive prices. This will require adaptation of existing management systems, with the potential integration of new software or analysis tools to track costs and margins more accurately.

For consumers, the impact of this reform could mean greater price variability between different pharmacies. This price disparity could be due to the diversity of pricing strategies adopted by each pharmacist, depending on their geographical location, their target clientele, and their commercial policy.

As a result, consumers will have to be more vigilant and compare prices more carefully before making a purchase. This could involve visiting several pharmacies or using online tools to compare the prices of the products they wish to buy, to ensure they get the best value for money. This need to compare prices could also encourage greater transparency and better price communication on the part of pharmacies, which in the long term could benefit the sector as a whole.

How to prepare for the transition

The Association Pharmaceutique Belge (APB) is actively engaged in a collaborative process with management software suppliers and wholesalers to ensure that the transition to the new pricing system runs as smoothly and efficiently as possible. Within this framework, a detailed protocol is currently being developed.

This protocol aims to ensure that the purchase prices of pharmaceutical products are automatically integrated into the management software used by pharmacies. This automation will not only reduce human error, but also save valuable time in the day-to-day management of stocks and prices.

Furthermore, it is essential that pharmacists familiarize themselves with this new technological system. They must not only understand how it works, but also be able to use it to accurately determine the profit margins they wish to apply.

This skill will enable them to set their sales prices independently and in a well-informed way, taking into account purchasing costs, market trends and consumer expectations. In addition, adequate and ongoing training will be required to ensure that all personnel involved in price management are comfortable with these new procedures, thus guaranteeing a smooth transition and successful adaptation to this major change in the pharmaceutical sector.

The long-term consequences of abolishing indicative public prices

In the long term, the abolition of indicative public prices could lead to greater transparency and competitiveness in the pharmaceutical sector, fundamentally transforming the way prices are perceived and managed.

Pharmacists, freed from the constraints of indicative prices, will have more freedom to adjust their prices in line with actual product acquisition costs, the margins they wish to achieve, and local market dynamics.

This increased flexibility will enable them to react more quickly to fluctuations in raw material costs, changes in consumer demand, and variations in general economic conditions.

In addition, this new autonomy could encourage pharmacists to adopt more innovative and efficient management practices, such as using advanced technologies to analyze sales trends and optimize stock levels.

It could also encourage better inventory management, enabling pharmacists to maintain optimal stock levels that minimize storage costs while ensuring product availability for customers.

Sales optimization could be facilitated by more dynamic pricing strategies that take account of consumer preferences and periods of high demand, thus benefiting the entire supply chain.

Ultimately, this reform could not only improve pharmacy profitability, but also strengthen the sector's competitiveness by encouraging greater innovation and better satisfaction of consumer needs.

New challenges for pharmacists

Pharmacists will face a number of new challenges, including the need to keep a close eye on purchasing costs, which involves careful analysis of supplier prices and constant assessment of market fluctuations.

They will also need to determine appropriate margins for each product, taking into account not only acquisition costs, but also overheads, taxes, and long-term profitability objectives. This complex task will require a thorough understanding of economic dynamics and an ability to anticipate market trends.

In addition, they will need to be particularly vigilant about consumer reactions to price variations, which means they will need to pay attention to customer feedback, monitor sales closely, and adjust their pricing strategies accordingly.

It will be crucial to ensure that their prices remain competitive, which may involve conducting regular market research to compare their prices with those of competitors. All this must be done while maintaining acceptable profitability, which may require the adoption of new technologies or management systems to optimize operations and reduce costs where possible.

Pharmacists will therefore need to develop a proactive and flexible approach to navigating this new business environment.

Potential benefits of price changes

The ability to freely set margins could enable pharmacists to significantly optimize their profits, giving them the flexibility to adjust prices in line with purchasing costs, economic trends, and consumer preferences.

By having the freedom to determine their margins, pharmacists can not only maximize their profits, but also adapt quickly to market fluctuations, which is essential in a constantly changing economic environment. This ability to adapt enables them to remain competitive in the face of growing competition, while responding effectively to the specific needs of their local clientele.

What's more, this pricing freedom could also encourage a greater diversity of products available in pharmacies. Indeed, by being able to offer products at attractive prices, pharmacists can broaden their product range to include innovative or specialized items that meet the varied expectations of consumers.

This could include niche products or emerging brands that would not be viable under a strict target price regime. By diversifying their offer, pharmacists can not only attract new customers, but also retain their existing ones by offering them a wider choice and options tailored to their needs and budgets. This strategy could also encourage greater personalization of services, strengthening the relationship of trust between pharmacists and their customers.

Next steps for pharmacists

Pharmacists need to prepare proactively by updating their management software to integrate the new automatic margin-based pricing features. This involves not only ensuring that IT systems are compatible with the latest technologies, but also working closely with software suppliers to tailor tools to the specific needs of each pharmacy. This technological upgrade is crucial to enable efficient and accurate price management, taking into account purchasing costs, desired margins, and market fluctuations.

At the same time, it is essential for pharmacists to define clear, well-structured pricing strategies. This requires a thorough analysis of costs, an understanding of local market dynamics, and an assessment of consumer expectations. Pricing strategies must be flexible to adapt quickly to economic changes and variations in demand.

In addition, it is imperative to train pharmacy staff in the new way of managing sales prices. This training must be comprehensive and ongoing, covering not only the use of new technological tools, but also the fundamentals of strategic pricing. Staff must be able to understand and apply the new pricing policies independently, while also being able to answer customer questions about price variations.

By ensuring a smooth transition to this new system, pharmacists can not only optimize their operations, but also boost customer confidence by offering greater transparency and competitive pricing.

Strategies for optimizing product margins

To optimize product margining, pharmacists can use a variety of sophisticated analysis tools to accurately track purchasing costs, profit margins and sales trends in real time.

These tools can not only monitor fluctuations in supplier prices, but also identify which products are generating the most profit, or which require special attention due to stagnant sales. By analyzing this data, pharmacists can make informed decisions on inventory management and price adjustments.

In addition, they can adopt targeted and personalized marketing strategies to promote specific products that meet their customers' needs and preferences. This can include the use of digital advertising campaigns, loyalty programs, and partnerships with local influencers to increase product visibility.

Pharmacists can also dynamically adjust prices in line with market demand, using algorithms to determine the optimal time to raise or lower prices to maximize sales and profits.

In addition, offering attractive discounts or promotions can be an effective strategy for attracting new customers and retaining existing ones. These promotions can be seasonal, based on special events, or personalized according to customers' buying habits.

By combining these approaches, pharmacists can not only improve the profitability of their products, but also strengthen their competitive position in the market by offering added value to their customers.