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07Feb 2025 by cesare ferrari No Comments
Cost vs. Competitive Pricing: What’s Best for Medical Device Companies

Cost vs. Competitive Pricing: What’s Best for Medical Device Companies

Uncategorized
This is the first article about common pricing strategies for medical devices. I previously discussed the importance and impact of an effective pricing strategy here. I also highlighted the factors to consider in setting a pricing strategy here.   In this and the next posts, I will cover some of the most common pricing strategies used in the medical device sector with their advantages and disadvantages.  Most common pricing strategies  In my experience, medical device companies frequently orient their pricing on a cost basis.   However, companies that employ pricing as part of strategic marketing are aware of the different pricing strategies and tactics and use a combination of them.  Together, let’s explore some of the most common pricing strategies.   Cost pricing strategy  Companies following the pricing strategy based on the cost,…
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23Jan 2025 by cesare ferrari No Comments
Key factors to consider for successful medical device pricing

Key factors to consider for successful medical device pricing

Sales, Upstream marketing
Setting a pricing strategy for a medical device is not an easy job.   Many factors impacting the pricing of medical devices are in continuous evolution; therefore, companies that expect to effectively manage profitably in changing markets need a clear pricing strategy governing how they will set prices to earn revenues.  If you’re in doubt as to the essential factors to consider when setting a price strategy, this guide is for you. Keep reading to learn what to do and what to avoid.  The pricing strategy  The pricing strategy is a critical part of the overall marketing strategy. For the pricing strategy to be effective, it must align with the marketing strategy and the business strategy.   If the business strategy is where to play and how to win, in my opinion,…
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11Jan 2025 by cesare ferrari No Comments
Navigating the Pricing Labyrinth: Pricing Strategies for Success in MedTech 

Navigating the Pricing Labyrinth: Pricing Strategies for Success in MedTech 

Sales, Upstream marketing
“There are two fools in every market—one asks too little, another asks too much.”   Old Russian Proverb  The subject of a good pricing strategy has been long debated, raising questions and concerns for very obvious reasons. To begin with, some folks agree that charging too little helps to gain market share but reduces profitability.    Others say low-priced products can attract the wrong customers—those who will switch to competitors to save money.    A low price could cheapen the customer’s view of the product. Conversely, charging too much may reduce product acceptance and market penetration.  This topic of pricing is particularly very intense in the medical device business. Several forces like competition, concentration of buyers, globalization, internet diffusion, and lack of resources in the healthcare systems act to increase downward pressure on…
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20Dec 2024 by cesare ferrari
Holiday Recap: Top Medical Sales and Marketing Insights of 2024

Holiday Recap: Top Medical Sales and Marketing Insights of 2024

Other
As we approach the festive season, it's a perfect time to reflect on some of the most popular and impactful medical sales or marketing posts of 2024. My Top Medical Sales and Marketing Insights of 2024 have shaped strategies, driven changes, and inspired discussions with my readers.   Let’s revisit these key highlights:  1. Common Misconceptions About Medical Sales Debunking myths and misconceptions about medical sales was a hot topic this year. My post on this subject clarified common misunderstandings and provided a more balanced picture of medical reps.  2. The Characteristics of Modern Medical Sales Understanding the traits that define today's medical sales professionals is crucial for sales success. This post highlighted the essential characteristics and skills needed to thrive in the evolving landscape.  3. Mastering Account Targeting in Medical Sales: A…
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07Dec 2024 by cesare ferrari
The Cornerstone Of Great Medical Value Propositions: The Customer

The Cornerstone Of Great Medical Value Propositions: The Customer

Upstream marketing
The value proposition of a medical device or a drug is one of the key determinants of its commercial success. I’ve deeply analyzed this subject in 4 different articles and you can read all about it starting here. In today’s post, I will revisit the subject focusing on a crucial aspect of the value proposition design: the customer. It’s my hope that at the end you’ll have further insight into why the customer is the cornerstone of a great medical value proposition. So follow along. The foundation of the value proposition: The customer You’ll agree that to design and effectively promote medical products and services that satisfy our multiple customers we must have a comprehensive knowledge of them. And to correctly use the value proposition canvas, we first need to…
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23Nov 2024 by cesare ferrari
What makes a good value proposition for Medical products?

What makes a good value proposition for Medical products?

Downstream marketing, Upstream marketing
At the heart of every strong medical product success is a good value proposition, here you’ll find out what makes a great one. The influential powers that determine customer preference may not always be initially evident. This is why we must understand what our customers are really looking for in terms of Jobs-to-be-Done, gains, and pains and consequently design products that will delight them and speak their language in our promotional material. What makes a good value proposition? Combining different sources, this is my personal list of factors to consider when building a good value proposition: Early start: To start developing a product with no clear objectives is too common a mistake. The value proposition design process is the basis for defining the product development plan and clinical development. Collaboration:…
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09Nov 2024 by cesare ferrari
Identifying and selecting key distributors for Medtech suppliers (part2)

Identifying and selecting key distributors for Medtech suppliers (part2)

Sales
This is the second part of the two-post series on selecting and categorizing key customers. In the first post, I covered why it is important to classify your accounts and which criteria you can use to differentiate them. Today goal is categorizing key customers and build a two-by-two matrix to visualize the different types of customers. If you've had difficulty identifying and selecting your key distributors, this follow up guide is what you need. Categorizing key customers To successfully categorize key customers, you need to first build a two-by-two matrix that captures these two views: Your view of the customers based on the overall score of key account attractiveness, as described in this previous post The customer's view of you expressed in terms of your attractiveness as a supplier Understanding…
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27Oct 2024 by cesare ferrari
Identifying and selecting key distributors for Medtech suppliers (part1)

Identifying and selecting key distributors for Medtech suppliers (part1)

Sales
Key account selection is the first step of key account management. In this post and the next one, I will share useful ideas for medical device suppliers needing to implement the key account management strategic approach to their distributors. Even today, some medical device companies do not classify their accounts or use only very basic classifications. A common way to select customers is by listing them according to the business generated and classifying them as customers A, B, and C. Although better than nothing this key account selection method is very elemental and has few disadvantages. The approach described in this post enables medical companies to build a better view of their distributors, get actionable insights, and make informed decisions. Compared to a customer list in which the customers are…
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19Oct 2024 by cesare ferrari
Common Misconceptions About Medical Sales

Common Misconceptions About Medical Sales

Sales
Did you know many people, sometimes for good reasons, have strong negative views about selling and salespeople? Not surprisingly pharma and MedTech sales reps are often victims of misconceptions. Despite the value generated for their companies even inside their own companies, they are associated with negative and sometimes offensive adjectives.  Having worked in medical sales for many years I think this unfavorable view is unjustified and this attitude to medical sales derives from misconceptions about selling. So, today I will discuss medical sales and explain its complexity and importance. The role of selling Traditionally, the nature of selling was considered only for its basic function i.e. making the sale. Today the selling process is much more complex and multifaced. Consequently, the medical sales rep role requires a deep knowledge of…
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