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Main Subject - Power Pricing - Getting the Right Price for Your Products and Services
There's an old joke about the New York City blackout. Power was out everywhere, and the electric company couldn't figure out what was wrong or how to fix it. Finally,
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
they decided that the only one who could solve the problem was a long-retired worker who knew the system inside and out. He came out to the power plant, looked aroun
; 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
d, picked up a hammer and tapped one of the generators.
Suddenly, lights came on all through the area. Overwhelmed with relief that the problem was solved, they aske
Suddenly, lights came on all through the area. Overwhelmed with relief that the problem was solved, they aske
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
d how much they owed him. "$20,000," he replied. $20,000? For tapping with a hammer? "Well," he said, "tapping with the hammer is $10. Knowing where to tap is worth $
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
19,990."
There are a couple of lessons to be learned from the joke. First of all, the value is higher when the problem still exists than after it has been solved. Af
There are a couple of lessons to be learned from the joke. First of all, the value is higher when the problem still exists than after it has been solved. Af
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
ter all, if told he could restore the power for $20,000, officials would have written him the check immediately, without question. Afterward, the problem wasn't so ur
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
gent--it was solved. Quote your price and get agreement while the customer still feels the urgency (and the pain that you will remove). That's when the value is highe
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
st to them. Your agreement can include conditions and guarantees, such as the results you will obtain, and deadlines, if they want assurances about results.
Maintain
Maintain
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
a little mystery. If they hadn't known that all he did was tap with a hammer, his services would have seemed more valuable. After all, they got the result they value
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
d--the power was restored. Focus on the results, not exactly what methodology will be used. Don't let customers look behind the curtain. (Remember the Wizard of Oz?)
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
If you are the only one who provides a particular product or service, or you have skills or training no one else does, the value of what you offer goes up. Highlight
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
your exclusive set of training, education and experience. Use unique language to describe what you do. You can also create an aura of exclusivity by screening clients
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
, and only accepting those who meet your criteria. This can work if you have a reputation already, but it can also help build your reputation, if you've got the guts
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
to try it!
Consider what your clients are used to paying, and charge at least that much. If your clients are used to paying $100 an hour, and you come in at $50, you
Consider what your clients are used to paying, and charge at least that much. If your clients are used to paying $100 an hour, and you come in at $50, you
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
probably won't get the job. On the other hand, if you can show that you are worth $150, you may be able to charge more than the going rate.
Another way to get an ho
Another way to get an ho
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
urly rate higher than others is to charge by the project, rather than the hour. For example, maybe you charge $150 instead of $100 an hour, but you get the job done i
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
n fewer hours. Get the client to look at total cost, rather than hourly rates. Once again, get them focused on results.
This issue comes up all the time in my publis
This issue comes up all the time in my publis
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
hing classes, where I remind students that they are not selling paper. They are selling the information printed on the paper--information that will improve the lives
.
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
of the people who use it. Paper is cheap. Useful information isn't.
Keep in mind that the value of your product or service is related to the benefits your customers
Keep in mind that the value of your product or service is related to the benefits your customers
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
receive, and how they value those benefits. Present what you sell as solutions to problems, and you can charge premium prices for your excellent products and services
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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