Possible Repeal of “Cost-Plus-5%” Pricing

Defense officials appear ready to ask Congress to repeal a law that commissaries must sell products at cost plus five percent, a formula that for decades has ensured commissary shoppers everywhere pay the same prices.

Officials have drafted a replacement formula that would allow prices to vary from store to store to meet a new twin goal: reducing taxpayer support for commissaries while maintaining still attractive savings for patrons.

Variable pricing would seek to keep savings consistent across the commissary system by pegging local commissary prices for a market basket of goods at some target percentage level below prices of “lowest-price” competitors nearby such as Wal-Mart stores.

For more details, see this Military Advantage blog post.

For more on discounts for military members, families and veterans, visit the Military.com Discount Center.