Author: Sommerfeld, Thimo L

Abstract:
The times when medical devices and technology were priced at cost-plus are long gone. Sophisticated pricing techniques such as conjoint analysis have become standard tools for launching a new product. However, prices determined through value-based pricing methodology are at increasing risk of being rapidly eroded by aggressive healthcare reforms, strong purchasing groups and value-ignorant sourcing of public and private customers. Due to ever-increasing discounts on list prices, a more tactical approach to pricing has evolved that adds an integrated perspective on how price levels and profitability are developing over time.

Source: MedTech Business Review, Autumn/Winter 2005, pp. 40-43

Publisher: Campden Media