The active ingredient is cheap, so tablet weight makes little difference to the production cost. It’s what happens next that hurts!
What consumers pay for is packaging, transport, warehousing, distribution, and retail. All these stages add cost and take a profit. By the time a product reaches the customer the purchase price is usually far above the manufacturing cost and then we pay VAT on it! Other costs include insurance, printing instructions in ‘n’ languages, confirming the product is legal wherever it is sold, advertising, and dealing with complaints etc.
Trusted brand-names allow much more profit to be taken – customers don’t like risk, and assume that the brand of salt bought by their granny must be much better quality than some cheap foreign un-branded salt. Maybe, probably not!
In the case of Vitamin D, the packaging alone might cost more than the pills!
The internet reduces sale price because it shortens the chain, especially reducing distribution and retail overheads. Rather than having a Pharmacy in every High-Street, Vitamins are sold from a ‘Fulfilment Centre’. This is a large automated Warehouse topped up ‘Just In Time’ direct from the ports, and fitted with a high-speed dispatch system feeding multiple delivery vans. Rates and building costs are minimised, the system employs far fewer people, and customers like to buy cheap and easy online. Downside is it destroys local shops, including Pharmacies, where customers often need the personal touch. Fulfilment Centres don’t seem to be a nice place to work, and a percentage of deliveries disappear or arrive damaged, whilst the reducing High Street means cash is slowly disappearing as a payment method…
Dave