Developing medical device pricing strategies in surgical and medical markets represents a number of challenges. One must consider the fact that the purchasing process does not stop with the clinician or at the door of the OR. Purchasing departments and GPO’s are playing an increasing role, but in response clinicians are learning when and how to deal with this.
Where a company can demonstrate a solid cost benefit argument or introduce a truly innovative medical device with no direct competition the power of the purchasing department is lessened and the room to charge a premium is greater.
Our experience allows us to approach pricing with a mix of pragmatic qualitative and quantitative techniques based on replicating the actual hospital decision-making process.
We also use the standard pricing methodologies to measure price sensitivity including a range of Conjoint approaches, Gabor Granger, Van Westendorp and Monadic designs. Although these pricing methodologies have limitations in healthcare markets, used selectively they can all derive excellent results.
