Ian Tidswell shares pricing information on creating and capturing value in an informative infographic.
Success in the Medical Technology industry requires constant innovation. However, capturing a fair share of the value (pricing) from that innovation throughout the product life cycle is especially challenging given multiple market access hurdles, constrained healthcare budgets, and diverse stakeholders.
The infographic below outlines the 6 steps to creating and capturing value in MedTech, from offering design through market access and reimbursement approval to new product transitions. Each step highlights some of the key concepts and tools.
These steps will be discussed in detail during the EPP Virtual Live MedTech Pricing training March 25-26 2021. Covering both industry-wide challenges and your specific improvement opportunities, you’ll leave with an understanding of how leading companies are achieving success with pricing, and the confidence to tackle all your pricing challenges.
Key points identified include:
- Market access with value recognised
- Value delivered and captured
- Segment and target buyers
- Gain effective market access
Read the full article and access the infographic, 6 Key Steps to create & capture value in MedTech: Infographic and Online Training March 25-26 2021, on Eenconsulting.com.
Ian Tidswell provides insight into the strange pricing practices fueled by loyalty programs, credit card programs, fees, and customer perception of value.
Utpal Dholakia always has interesting posts on pricing. This one got me thinking about the strange way that buying a coffee can result in wealth transfer to an airline.
Airlines make a lot of money off of their loyalty programs (often all of their profit). 71% of those miles are purchased, many by banks for their credit card programs. This is strange.
Credit card payment processing is not a very economically efficient market: there’s close to a duopoly with MasterCard and Visa (80% market share). That, along with the scale efficiencies, consumer switching costs, and merchant risk aversion (more on this below) mean they can charge high fees to merchants, capturing huge value. (Capturing rather than creating IMHO, since this is rent-seeking behavior. It’s a high-margin, commodity business. MasterCard net profit margin is 50%!)
MasterCard and Visa member banks then compete with each other in a profitable but near-commodity market. One way they compete is on price: sharing some of the fees they earn via the processing companies with consumers. They could do this with a simple cash-back scheme or other reward programs, but it turns out that airline loyalty points work well since many people value them higher than their actual worth. It’s basically a parallel currency with a highly variable exchange rate to valuable services. An exchange rate the airline controls.
Key points include:
- The true value of reward programs
- The true cost of reward points
- The rentier economy
Read the full post, The strange case of a Cup of Coffee, Credit Cards and Costa Rica vacations, and access links on the subject on eenconsulting.com.
Ian Tidswell provides an infographic that provides the details of the key 6 steps to creating and capturing value in MedTech, from offer design through market access and reimbursement approval to new product transitions.
Success in the Medical Technology industry requires constant innovation. However, capturing a fair share of the value (pricing) from that innovation throughout the product life cycle is especially challenging given multiple market access hurdles, constrained healthcare budgets and diverse stakeholders.
The steps illustrated include:
- Pre-launch – market access with value recognized
- Communicating the values
- Gaining effective value access
- Segment and target buyers
- Incentives align channel
- In-market – value delivered and captured
View the detailed infographic on the Een Consulting website.