Main Subject - Business

How To Raise Your Fees

There comes a time when it is inevitable that you must raise your fees in order to maintain both your profit m

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

argin and income level. You will find that the greatest resistance to this comes from your oldest clients.

There appears to be a dire

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

t correlation between the length of time a client is with you and the amount of outrage they show to your rate increase. This article wi

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

ll discuss the types of clients and how they usually react.

Keep in mind, no matter how you raise fees, how you approach telling cli

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

nts or amount of lead time you give them, you will lose some clients. This is a given. I have found over the years that a very high perc

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

entage of clients lost are those that I'm not crazy about working with anyway. It's worked out, for me anyway, that these former clients

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

who complained the most about your fee increase, were responsible for 85-90% of the aggravation I encountered.

Clients are attracted

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

to you for a variety of reasons. We would all like to think that it is because of our brilliant promotional pieces, our award winning de

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

igns, outstanding service, etc. The reality is that many clients are using your services strictly because of price. I refer to these cli

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

ents as price loyal. They are loyal to whomever has the lowest price. This type of client is not particularly sensitive to quality of wo

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

k or level of service you provide. They go strictly with the lowest price and if you have the opportunity to examine how they run their

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

business, your see it operates on this principle. For me anyway, this type of client is no loss.

There is a second type of price cons

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ious client that is concerned with the quality and type of service being provided to them. You may lose this type of client with a price

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

increase, but you'll find that they will be very apologetic about it. These clients truly can not afford the higher rates. They are usu

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

lly a dream to work with, and I hate to lose them. In this situation, I will try a number of ways to keep them.

Your newer clients us

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

ually react in a more neutral manner to a rate increase. They haven't been with you long enough to get a true baseline on your fee struc

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

ures. You stand a very good chance of keeping these clients if the reasons for the rate increase are explained to them and not just drop

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

ped on them.

I find that I lose about 5-6% of my clients when I raise my fees. Usually, I suffer no income loss because my higher rat

.

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

s absorb their loss. Remember, the bottom line is you are selling your time, you must make the most efficient and profitable use of it.

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

If your rates stay around market level, you should have little or no trouble finding new clients.

Copyright 2000, DeFiore Enterprise

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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