B2B pricing innovation
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.
Pricing – What private bankers can learn from Porsche
Banks have learned a lot from industries like the automotive sector in the past, but they still have some catching up to do. This includes innovative pricing approaches to increase profitability.
Imagine you want to buy a sports car, for example a Porsche. Maybe a 911. You call a dealer and want some information, including the price, because you can’t find it on the Internet. The dealer does not answer the question, but kindly invites you to an appointment and you discuss for two hours what you need the car for and what it should do. In a second appointment you will then receive a suggestion for the 911 and take a short test drive. They ask whether there are alternatives, for example an SUV for the family or a car for long trips or an entry-level model. All this is denied by the dealer, but he praises the different color and engine variants. Ultimately, you’re talking about the price, which is $ 130,000 on the first offer. You ask politely, almost shyly, whether something could be done. And the seller replies without hesitation that he can leave you EUR 15,000.
Pricing: Porsche vs. Private banking
Is this a completely absurd story? In the automotive industry for sure, but is it a good – admittedly exaggerated – description of the situation in private banking? Comparisons of this kind are never perfect, but they are often illuminating. One difference, of course, is that the sports car is a highly emotional product and the private banking service is a less than inspiring service. Nevertheless, the target groups are similar and the costs of a private banking mandate over the term of the customer relationship quickly reach the price of a Porsche. Three aspects of the “absurd” story need to be discussed for private banking:
(Still) lack of price transparency: The private banking customer (still) has to make a significant effort to get an overview of the usual market conditions, as these are not disclosed by the institutions. Typically, the customer only receives a specific offer in the second interview. Ie although the services are essentially similar, the pricing is discretionary. Even if this can be a very comfortable situation from the perspective of the private banker, it is questionable how long it will last.
Key points include:
- Why pricing is important
- Brief excursus on pricing theory
- Pricing approaches or what needs to be done?
Read the full post, Pricing – What private bankers can learn from Porsche, on Paddags.com.