At the beginning of the pandemic, when pharmacies struggled to obtain supplies, masks often cost more than €1 per unit. Prices were still struggling to fall in August as pharmacies and stores still had high-priced inventories, but now the cost has come down significantly.
Prices still vary from one pharmacy to another. For example, the Hamilius pharmacy is selling masks, from a Belgian supplier, at 50 cents each. But the Pharmacie Globe at place de la Gare, which has supplies from Asia, is selling 100 masks at €19.80, or about 20 cents per unit--in 2019 it was selling similar masks at €10.63 per box of 50.
On average, the price of masks in pharmacies is “around 50 cents”, says Alain de Bourcy, president of the Luxembourg pharmacy syndicate (SPL). He says prices are very affordable, but “still a little higher than before the crisis”, when they were priced at around 25 cents. The difference is that there are no longer supply shortages. “The market tends to relax,” says de Bourcy.
Nevertheless, prices are still higher than before the crisis. “Producers know they can ask for a little more,” he says. According to de Bourcy, despite European production starting up, most masks are still imported from the far east. Greater demand often requires more employees at manufacturing sites and for distribution.
On the other hand, boxes of ten masks are available at Auchan for €1.99, or 20 cents per unit, while Cactus is selling boxes of 50 for €14.95, the equivalent of 30 cents per unit. Santé Services masks, which are made in Luxembourg, were retailing at €24.90 for 50 on Letzshop on 13 January were reduced to €19.90 euros (40 cents per unit) by Thursday 14 January. Indeed, Family Invest is selling 50 made in Luxembourg masks for €16, which is just 32 cents per unit.
“Supermarkets order such large quantities that prices are reduced,” Alain de Bourcy explains. “Some even make a zero margin on them as loss leaders.” The margin made by the pharmacies--“less than 45% of the selling price, as for drugs” --has not increased, he says. And despite an appeal to the government to lower VAT to 3%, as it is for other “essential” goods, the value added tax on masks remains at 17%.