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Main Subject - Negotiating – The Myths and Realities
We have all been there at some stage in our business lives – the dreaded negotiation with your most awkward client. He regularly screws you to the floor each year on price and everything else you have to offer! Pretty quickly you see every negotiation as a battle and all your self confidence goes.
There are a lot
There are a lot
According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product
of myths surrounding negotiating which don’t help if you are faced with handling such a situation for the first time. But as with many myths, there is usually a very different reality.
Myth: It can be a daunting ordeal
You mention to your trusted partner or member of staff that you are off to negotiate nex
Myth: It can be a daunting ordeal
You mention to your trusted partner or member of staff that you are off to negotiate nex
; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.
Examples of combination products may in
Examples of combination products may in
year’s big contract. What do they say? “Good luck!” The majority of people think that negotiating is a dirty and tough task, a necessary evil.
Reality: Not if you plan
As with all things in life, we fear the unknown, especially if we are unprepared. The reality of negotiating is that with adequate prepara
Reality: Not if you plan
As with all things in life, we fear the unknown, especially if we are unprepared. The reality of negotiating is that with adequate prepara
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
ion comes confidence. Before your meeting sit down and ask yourself the following questions:
1. What do you want out of this negotiation?
2. What is your lowest, acceptable and best price?
3. What are you prepared to ‘give away’ if necessary?
4. What do you know about the other company’s pos
1. What do you want out of this negotiation?
2. What is your lowest, acceptable and best price?
3. What are you prepared to ‘give away’ if necessary?
4. What do you know about the other company’s pos
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
tion in the deal?
5. If you don’t know much, what questions can you ask to improve your understanding?
Thorough preparation is a great confidence booster. See the negotiation as a presentation and plan your approach and questions before hand.
Myth: Negotiators are born
There is such a mystic surroun
5. If you don’t know much, what questions can you ask to improve your understanding?
Thorough preparation is a great confidence booster. See the negotiation as a presentation and plan your approach and questions before hand.
Myth: Negotiators are born
There is such a mystic surroun
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
ing negotiation and the skills needed to be good at it, that most people think you either have it at birth or you don’t!
Reality: Negotiators can be made
Like any skill in business, negotiation skills can be learnt and put into practice. There are lots of books, tapes and seminars you can attend on this su
Reality: Negotiators can be made
Like any skill in business, negotiation skills can be learnt and put into practice. There are lots of books, tapes and seminars you can attend on this su
ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc
ject. Negotiation is a structured process and once you understand how it all works the task becomes easier. But as with any new skill you have to practice, practice, practice and this is where most people fall down. Having acquired a new skill you have put in the training but it can be done!
Myth: To strike a d
Myth: To strike a d
easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi
eal you have to concede on price
The perception is that many negotiations end up with one of the parties always having to concede on price just to secure the deal.
Reality: There are other items you can concede on
The reality in any negotiation is that price is not always the deciding factor. There is
The perception is that many negotiations end up with one of the parties always having to concede on price just to secure the deal.
Reality: There are other items you can concede on
The reality in any negotiation is that price is not always the deciding factor. There is
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
usually something else that the other party wants in addition to, or instead of, a lower price. It could be that they need the product or service quickly and may be prepared to pay a premium for a fast delivery. They may want the product changed slightly to meet their specifications. They may like some on-site supp
and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ
rt for implementation.
In your research and questioning it’s up to you to find out what they really want. Dig deep and find it because every part of the deal is negotiable, not just the price. Once you have hit upon it, before conceding on price, throw it into the pot. Remember, this could be something which means
In your research and questioning it’s up to you to find out what they really want. Dig deep and find it because every part of the deal is negotiable, not just the price. Once you have hit upon it, before conceding on price, throw it into the pot. Remember, this could be something which means
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
very little to you but a lot to them.
Myth: If their first offer is what you want, say yes
After your sales pitch your client comes back and immediately offers exactly what you wanted. Wow, what a great outcome! He’s got what he wants and so do you. Deal done!
Reality: Always counter the first offer
If you accept immediately there are two problems:
1. Your customer will think he has had a bad deal, “He accepted straight away! I could have had a much better deal. I’m sure I went in too high.” With these thoughts going through his mind he won’t feel totally happy with the deal and the chance of cancellat
Myth: If their first offer is what you want, say yes
After your sales pitch your client comes back and immediately offers exactly what you wanted. Wow, what a great outcome! He’s got what he wants and so do you. Deal done!
Reality: Always counter the first offer
ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.
Following aspects would a
Following aspects would a
If you accept immediately there are two problems:
1. Your customer will think he has had a bad deal, “He accepted straight away! I could have had a much better deal. I’m sure I went in too high.” With these thoughts going through his mind he won’t feel totally happy with the deal and the chance of cancellat
dd to the challenges in developing combination products:
Which markets to tap where the combination products can do fairly well?
Which combination prod
Which markets to tap where the combination products can do fairly well?
Which combination prod
on or no future business is higher
2. It’s likely that this your customer’s opening bid. Opening bids are usually on the low side and used as a starting point. Accepting now, even if it’s what you were looking for, could mean you throwing away a higher price
There are instances where the customer will say “I
2. It’s likely that this your customer’s opening bid. Opening bids are usually on the low side and used as a starting point. Accepting now, even if it’s what you were looking for, could mean you throwing away a higher price
There are instances where the customer will say “I
cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin
don’t negotiate. This is the price I’m prepared to pay.” He has set the rules, so as long as you are happy with the price, go for it!
Myth: Negotiating is a competition with only one winner
If you have a competitive streak this is how you will see a negotiation – something to win or lose. Non-competitive p
Myth: Negotiating is a competition with only one winner
If you have a competitive streak this is how you will see a negotiation – something to win or lose. Non-competitive p
tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
What would be the developing cost?
How to tackle the risks encountered during combination product developmen
eople who believe this myth automatically lower their defences and quickly cave in to the ‘stronger’ player.
Reality: There should be two winners
Negotiation is not a competition. The ideal outcome should be win-win, where both sides feel they achieved something out of the whole process – one got a sale at
Reality: There should be two winners
Negotiation is not a competition. The ideal outcome should be win-win, where both sides feel they achieved something out of the whole process – one got a sale at
t?
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel
a price he wanted and the other got a purchase at a price he wanted.
Win-win outcomes leave the door open for building strong relationships which will lead to more business in the future. Win-lose outcomes mean that one side will be reluctant to deal again. If, by your very nature, you are a competitive person, te
Win-win outcomes leave the door open for building strong relationships which will lead to more business in the future. Win-lose outcomes mean that one side will be reluctant to deal again. If, by your very nature, you are a competitive person, te
ping new procedures for reviewing their safety, efficacy and quality.
Professional from academic institutions, pharmaceutical industries, health care indust
Professional from academic institutions, pharmaceutical industries, health care indust
per this and accept the reality that the negotiation process has to have two winners, not just you!
Myth: If you walk away, that’s it
You have found the perfect product but you don’t get the price or deal you are looking for. However, you are afraid about loosing the opportunity so you decide to go for it
Myth: If you walk away, that’s it
You have found the perfect product but you don’t get the price or deal you are looking for. However, you are afraid about loosing the opportunity so you decide to go for it
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
nyway, at any price.
Reality: Opportunities often come around again
Accepting a deal through fear is not a position you want to be in. You will always have a nagging doubt that you paid too much or gave away something which you should not have. Be strong enough to walk away from a deal if it’s not what you
Reality: Opportunities often come around again
Accepting a deal through fear is not a position you want to be in. You will always have a nagging doubt that you paid too much or gave away something which you should not have. Be strong enough to walk away from a deal if it’s not what you
.
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de
are after.
You have to learn to detach yourself from the underlying deal and avoid getting emotionally involved with the product or service. Just concentrate on getting the best result. Being emotionally detached means you can walk away with no doubts. You may find that a few days later the seller will be back ban
You have to learn to detach yourself from the underlying deal and avoid getting emotionally involved with the product or service. Just concentrate on getting the best result. Being emotionally detached means you can walk away with no doubts. You may find that a few days later the seller will be back ban
elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.
Companies that provide selfless information through particip
Companies that provide selfless information through particip
ing on your door with another offer. Remember that opportunities always pop up and walking away is not a failure!
So take a fresh look at negotiating. Are you clinging onto old myths about how negotiating should be done? Accept that the reality can be very different!
© Robert Warlow Small Business Succes
So take a fresh look at negotiating. Are you clinging onto old myths about how negotiating should be done? Accept that the reality can be very different!
© Robert Warlow Small Business Succes
tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products
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