Pricing is one of the most powerful levers to increase profitability. Studies have shown that on average, a 1% increase in price leads to a 7-8% increase in profits–making optimal pricing more effective than improving volumes or variable and fixed costs.
HBS Medical supports clients in aligning their pricing strategies with corporate and business unit objectives, to provide superior returns for shareholders.
Strategic pricing based on value, not cost
By combining the vision and objectives of our clients with the needs and price sensitivities of their customers, we help develop adaptable, executable and sustainable value-based strategies across pricing tiers:
Segmentation is a key part of pricing and profit optimisation, since 'value' varies across customer segments and channels to market. Our diagnostic analysis methodologies enable our clients to segment their markets, identify quick wins and exploit variances between micro-segments, to provide their customers with tailored price/benefit advantages.
HBS Medical evaluates the profitability of alternative launch strategies and examines solutions which increase customers' willingness to pay, such as product/service bundling.
HBS Medical helps clients to control price, increase profitability of transactions and implement effective pricing processes, by identifying and eliminating pricing inconsistencies and actively managing the price waterfall.
HBS Medical enables clients to realise objectives such as increased profitability and market share, by creating and communicating an enhanced product positioning, price perception and value offering to all healthcare customers, including purchasers, stakeholders and end users.
Pricing challenges in the medical technology sector
Developing and implementing pricing strategy in the medical technology sector presents a number of challenges: Any plans must consider:
At HBS Medical we have developed a proprietary approach to pricing projects in the medical technology sector. Our approach draws on programmes of analysis across 4 key areas:
Our 4-pillar approach centres on helping our clients define, measure and communicate their products' sources of value, as defined by their customers, to ascertain the maximum price their customers are prepared to pay for the benefits they receive.
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