Useful Advices - Business

With so many companies paying commissions as a percentage of gross margin, it's tempting to quote full price - or at least a very high price - when wri

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

ting proposals. You'll certainly make the biggest commission this way, but the question begs: will you lose too many sales on price to make it worthwh

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

Examples of combination products may in

ile?

If you've read my materials before, you know that I am very blunt about speaking the truth, and the truth is that price matters. Lots of sales

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

trainers seem to be in total denial of this fact, and a lot of managers too, who just happen to be paid on profit margin. They insist that if you

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

're a good salesperson, you can sell everything at full price. But in the real world, price matters. Period.

Even when using the powerful profit j

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

Combination pro

ustification techniques I teach, if your price is out of line, it's out of line. Your prospect will take your profit-justified proposal and ask a

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

competitor to provide the same solution at a better price.

As usual, this topic came to mind due to a real life experience that happened to me. It

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

was a conversation yesterday with a friend who happened to be the prospect of a salesperson trying to make a full-price sale. The moment she objecte

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

d to the price, the salesperson immediately offered a lower price. A much lower price.

Her reaction? She was insulted - infuriated - that the sale

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

s rep tried to pull one over on her. She rightfully felt that his intent was to get as much money as he could out of the sale. When the sale was

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

n jeopardy, he instantly dropped his price. After all, getting less money is still better than getting none.

I feel the same way when a salesperson

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

Following aspects would a

marks up a price in an attempt to make easy money off of me. I'm not stupid, and I take it as an insult to my intelligence when it happens.

When

dd to the challenges in developing combination products:

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

I was selling based on margin, I gave a fair price up front and stuck with it. I told the prospect flat-out that my price was my best price and it

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

could not come down any more. I explained that I feel it's unethical not to give my best price up- front because anything else would be an attempt

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

to rip the prospect off. Prospects identified with this and appreciated my honesty and frankness. I got lots of sales this way.

In addition to a

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

ngering prospects, quoting your full price will also cause you to lose more sales than you know. Prospects will consider your quote to be "out of th

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

Professional from academic institutions, pharmaceutical industries, health care indust

e ballpark" and assume that even if you can negotiate, you still won't be within their budget, and as a result they won't return your calls when tr

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

y to offer that lower price. Quoting a fair price up front gives you a much better shot at the sale.

Having said all this, quoting a fair price doe

.

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

sn't mean giving your maximum discount on every proposal. Find the right balance where your price is fair and competitive but where you're still m

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

Companies that provide selfless information through particip

aking a good commission. If your proposals are within that range, you'll win plenty of sales and have a generous commission check to show for them

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

HTTP = HTML link (for blogs, profiles,phorums):
<a href="http://www.usefuladvices.org.ua/article/38742/usefuladvices-Best-Price-or-Biggest-Margin.html">Best Price or Biggest Margin?</a>

BB link (for phorums):
[url=http://www.usefuladvices.org.ua/article/38742/usefuladvices-Best-Price-or-Biggest-Margin.html]Best Price or Biggest Margin?[/url]

What would you do if you lost your job tomorrow? How long could you survive economically? Do these questions raise a red flag? They should, because in today's corporate climate of reengineering, downsizing, and outsourcing it could happen to any employee at any time. You need to protect yourself with business survival skills.

This article looks at the complicated processes involved in putting a value on a business.

Writing a press release is an art form and that is why many PR professionals charge over $100 and often over $500 to write a 300 – 500 word press release. Here, we will go through, step by step, what PR experts such as myself do, to help get the most publicity for our clients.

Tags

Links

Useful Advices - Best Price or Biggest Margin?

Related Articles: