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Digg It - Why Doubling Your Fees Can Increase Business: How Pricing Affects Buyer's Decision Making Process
Want to know the simple way to get all the business you could ever handle? Charge almost nothing.
That's the approach employed by busy fools anyway.
Are you a busy fool? Here's a test... If nobody has ever complained about your price then you probably are.
High Prices Are A Sign of High Value... This absolutely defies logic but we
That's the approach employed by busy fools anyway.
Are you a busy fool? Here's a test... If nobody has ever complained about your price then you probably are.
High Prices Are A Sign of High Value... This absolutely defies logic but we
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
nearly all fall for it.
If everyone else charges an average of ?50/hour and you decide to price yourself at ?100/hour what would happen?
The last time you chose a piece of hardware (DVD Player, Washing Machine, TV) how did you evaluate which product was the best and which one wasn't?
Does an expensive branded perfume cost so much be
If everyone else charges an average of ?50/hour and you decide to price yourself at ?100/hour what would happen?
The last time you chose a piece of hardware (DVD Player, Washing Machine, TV) how did you evaluate which product was the best and which one wasn't?
Does an expensive branded perfume cost so much be
; 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
cause it smells infinitely better than the cheaper alternatives?
Is a diamond really that much better than crystal at making jewellery look shiny?
Which came first? Prestige Brand or High Price?
When buying, we nearly all make the assumption that higher price means better quality, nearly all of the time. Humans often make lazy decis
Is a diamond really that much better than crystal at making jewellery look shiny?
Which came first? Prestige Brand or High Price?
When buying, we nearly all make the assumption that higher price means better quality, nearly all of the time. Humans often make lazy decis
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
ons based on assumptions. We have to make so many decisions each day that if we didn't create strategies and shortcuts then we'd die before achieving very much.
There are exceptions to this but generally (and within reason) the rule applies more times than not.
A Glass Ceiling
If you set your prices too low, then you've created an a
There are exceptions to this but generally (and within reason) the rule applies more times than not.
A Glass Ceiling
If you set your prices too low, then you've created an a
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
rtificial limit for your own ability to provide high quality services and make good money without working harder than is necessary.
Low price typically begets low quality.
High price typically begets high quality.
It's very easy to lower a high price when we get it wrong, but ask anyone who's ever done the opposite and they'll tell
Low price typically begets low quality.
High price typically begets high quality.
It's very easy to lower a high price when we get it wrong, but ask anyone who's ever done the opposite and they'll tell
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
ou that going the other way is nigh on impossible.
Increasing Price Can Increase Customers... Most people think this is outrageous. But it's actually true.
In his book, Selling The Invisible, Harry Beckwith tells a story about how increasing price can sometimes sell something that previously wouldn't budge. I'll retell it quickly he
Increasing Price Can Increase Customers... Most people think this is outrageous. But it's actually true.
In his book, Selling The Invisible, Harry Beckwith tells a story about how increasing price can sometimes sell something that previously wouldn't budge. I'll retell it quickly he
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
re...
The owner of a Native American Jewellery store in Arizona was getting increasingly frustrated at her failed attempts to sell some turquoise jewellery. She'd tried sales and also encouraged her staff to push the jewellery but nothing seemed to work.
One day, she had to go on a trip. Before she set off she scribbled a note to one
The owner of a Native American Jewellery store in Arizona was getting increasingly frustrated at her failed attempts to sell some turquoise jewellery. She'd tried sales and also encouraged her staff to push the jewellery but nothing seemed to work.
One day, she had to go on a trip. Before she set off she scribbled a note to one
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
of her salespeople.
Everything in this display case, price X 1/2.
When she returned everything was sold. She initially thought her plan to cut the price by half had worked. That was until she discovered the real reason.
The salesperson who found the note had misread it as price X 2 and so doubled the price of everything.
Logical p
Everything in this display case, price X 1/2.
When she returned everything was sold. She initially thought her plan to cut the price by half had worked. That was until she discovered the real reason.
The salesperson who found the note had misread it as price X 2 and so doubled the price of everything.
Logical p
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
icing that seems to you to be fair, can sometimes actually make you look mediocre or cheap.
How Do You Know Their Price Is Right? Most people set their price based upon the competition.
They look at the high/low extremes and in many cases plant themselves somewhere in the middle based on their view of how they measure up.
The price
How Do You Know Their Price Is Right? Most people set their price based upon the competition.
They look at the high/low extremes and in many cases plant themselves somewhere in the middle based on their view of how they measure up.
The price
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
you set though is sending another message.
It's telling your prospective customers how good you think you are. Average price means you think you're average. Not very compelling.
Always, always aim to be the most expensive. You'll have an instant differentiator, higher earning potential and increased profits.
Premium Price
If you c
It's telling your prospective customers how good you think you are. Average price means you think you're average. Not very compelling.
Always, always aim to be the most expensive. You'll have an instant differentiator, higher earning potential and increased profits.
Premium Price
If you c
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
n steal a lead and command a high price early on in a niche or sector then you'll own the word prestige.
This happened not too long ago in the NLP Training Market.
An explosion of training providers began to spring up quickly in the UK and most firms set their price using their competition and other training firms as a guide.
Before
This happened not too long ago in the NLP Training Market.
An explosion of training providers began to spring up quickly in the UK and most firms set their price using their competition and other training firms as a guide.
Before
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
these firms knew it, they were all averagely priced, perceived as average and actually realised that they had to sell a lot of training to make their costs turn a reasonable profit.
Another training provider, however, set their price at approximately double the average. Not only did they find it easy to gain new customers. These cust
Another training provider, however, set their price at approximately double the average. Not only did they find it easy to gain new customers. These cust
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
omers, who spent double that of their peers for the same qualification needed to justify their expenditure and so told everyone how much better their training was.
Soon the seed was planted; the high priced firm gained a reputation (through word of mouth of its customers) as one of the most distinguished providers in the UK. Whether
Soon the seed was planted; the high priced firm gained a reputation (through word of mouth of its customers) as one of the most distinguished providers in the UK. Whether
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
his firm is the best or not is irrelevant, because plenty of people believe it and are happy to pay a premium to say they've trained there.
Think Value Not Components Let's say my hourly rate is ?2500.
If you're a consultant or trainer then you're probably thinking, "?2500 per hour? No chance! I'd have to do 5 days work for that muc
Think Value Not Components Let's say my hourly rate is ?2500.
If you're a consultant or trainer then you're probably thinking, "?2500 per hour? No chance! I'd have to do 5 days work for that muc
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
h money."
If you're a successful professional speaker then you might be thinking, "That's about right."
Now let's just imagine...
I know the secret formula for making a ? million in 24 hours and I'm willing to share it with you for just ?2500.
Would you say that's a pretty good deal?
Would you grumble about paying me ?2500 for 1 h
If you're a successful professional speaker then you might be thinking, "That's about right."
Now let's just imagine...
I know the secret formula for making a ? million in 24 hours and I'm willing to share it with you for just ?2500.
Would you say that's a pretty good deal?
Would you grumble about paying me ?2500 for 1 h
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
ur's work if my advice worked for you? You'd probably have happily paid far more than this.
Depending on people's situations or problems, they will put enormous value on your ability to deliver a solution or desirable benefit.
If you can truly provide something valuable that people need and want then command a fitting reward. Don't b
Depending on people's situations or problems, they will put enormous value on your ability to deliver a solution or desirable benefit.
If you can truly provide something valuable that people need and want then command a fitting reward. Don't b
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
e tied to the notion that quantity is more valuable than the outcome because it's not.
A Warning
I'm not suggesting you should immediately, upon reading this, double your prices. Of course there are other factors to consider.
* The market may not be able to stand nor afford a price that is too far above the norm. Getting it too far
A Warning
I'm not suggesting you should immediately, upon reading this, double your prices. Of course there are other factors to consider.
* The market may not be able to stand nor afford a price that is too far above the norm. Getting it too far
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
wrong could mean zero customers.
* You may not be providing value for money if your price is escalated beyond your ability to deliver. If you believe this is important (and I hope you do) then you'll feel like a trickster.
* You may be regulated in some way preventing such creative pricing strategies. Industry Watchdogs and consumer
* You may not be providing value for money if your price is escalated beyond your ability to deliver. If you believe this is important (and I hope you do) then you'll feel like a trickster.
* You may be regulated in some way preventing such creative pricing strategies. Industry Watchdogs and consumer
.
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
roups like to create this type of pressure for their own benefit. If you're regulated then price will rarely be your differentiator.
I couldn't possibly give you firm advice on pricing based upon the format of this ezine and would urge you to test carefully and make your own well-calculated decisions on the risks and rewards.
Also, i
I couldn't possibly give you firm advice on pricing based upon the format of this ezine and would urge you to test carefully and make your own well-calculated decisions on the risks and rewards.
Also, i
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
f we were discussing commodities here then most of the pricing ideas I'm sharing just wouldn't work. The fact is you're usually not (or should not be) offering a commodity. You're unique, you're solving a prospect's problem in a unique way and you're communicating this in a unique way.
Consider charging more - I'm sure you're worth it
Consider charging more - I'm sure you're worth it
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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