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Digg It - Cash Is Still King Of The Hill
How do small retailers compete and succeed while doing business with big-box stores today? Most experts suggest the following “simple” formula- Sell quality products, continuously offer out of this world customer service, find suppliers where you can obtain higher mark
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
ups and avoid discounting at the expense of sales down the road, right? Those of you in the trenches every day know that this is not always easy to accomplish. I say we try something a bit simpler and back to basics- Start to improve your business today by watching you
; 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
cash—and then letting it help you grow.
For just about every small retailer, cash is king. Whether the focus is on daily and weekly sales to assure that there's money in the bank to meet payroll and other expenses, or on building a cash balance during the busy season
For just about every small retailer, cash is king. Whether the focus is on daily and weekly sales to assure that there's money in the bank to meet payroll and other expenses, or on building a cash balance during the busy season
lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.
to get you through the slower times, most small retailers keep a very close eye on cash flow.
Since the big box chains don’t have this “daily” worry, they spend their time negotiating with vendors and driving down costs to offer their customers the lowest price for c
Since the big box chains don’t have this “daily” worry, they spend their time negotiating with vendors and driving down costs to offer their customers the lowest price for c
here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe
mmodity or near-commodity goods. They understand that for these items the vast majority of shoppers are highly price sensitive.
But for any item, and especially for those that are not commodities, there is a critical segment of customers who are not price shoppers, wh
But for any item, and especially for those that are not commodities, there is a critical segment of customers who are not price shoppers, wh
d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.
Combination pro
Combination pro
focus instead on product quality, service, and a relaxed, friendly experience. Small retailers, enter here.
In other words, small retailers should avoid competing on the basis of price, because there will always be a competitor with larger, deeper pockets, instead, y
In other words, small retailers should avoid competing on the basis of price, because there will always be a competitor with larger, deeper pockets, instead, y
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
ou should focus on finding unique, high quality, and compelling products that the big box stores don’t even look for in the marketplace. Competing on the basis of product quality and uniqueness enables a small retailer to present to their customers a compelling value p
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
oposition and maintain critical price integrity.
Thus it follows that strategic positioning for small independent retailers leads directly and most importantly to the product selection and pricing policy of a store. By selling higher quality, specialty products on the
Thus it follows that strategic positioning for small independent retailers leads directly and most importantly to the product selection and pricing policy of a store. By selling higher quality, specialty products on the
nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically
basis of their intrinsic value, and the product knowledge and customer service that accompany them, you can insulate your store from price competition, and your store can obtain a higher initial markup, avoid price promotions, and other incentives that eat into margin
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
.
How is this done? Here are a few specific ideas to help position your store as a premium destination for the finest products, knowledge and service, and generate the margins you’ll need to assure continuing positive cash flows:
• Adopt a better/best pricing structu
How is this done? Here are a few specific ideas to help position your store as a premium destination for the finest products, knowledge and service, and generate the margins you’ll need to assure continuing positive cash flows:
• Adopt a better/best pricing structu
ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi
e, rather than a good/better/best structure. The classic retail pricing structure for any product category is three-tiered, with an opening priced "good" quality item, a mid-priced "better" quality item, and a higher-priced "best" quality item. The nature of contempora
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
ry retailing is that for most any product category, there is a big box who is seeking to lock up the opening price point. Let them. They are more than happy to trade margin for volume, and have the deep pockets to do it. Instead, protect your margins by focusing your e
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
forts on better quality goods, using a "better" quality item as your opening price point, and focusing your energies around the quality and features of the "best" item.
• Avoid carrying the same items as the competing big-box store. This may not always be possible, bu
• Avoid carrying the same items as the competing big-box store. This may not always be possible, bu
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
t if you must, think of those items as accommodations to your customers, rather than key items that you are trying to maximize the sale of. Rather, build your business around unique items and unique product categories in niche markets to a carefully targeted clientele.
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
• Keep your inventories lean to minimize markdowns and their impact on margins. The instinct of many small retailers is to have enough stock to never miss a sale, but all that inventory carries tremendous markdown risk, which can decimate margins and cash flow. Bring
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
resh inventory into your store as close to the time of anticipated sales as possible- so you always have something new and exciting to offer your customers.
• Don't get locked into standardized pricing formulas, like keystoning. Your pricing should not be merely a fun
• Don't get locked into standardized pricing formulas, like keystoning. Your pricing should not be merely a fun
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
ction of what you paid your vendor for the item, but rather the intrinsic value of the item, and the accompanying service you provide your customers. The product knowledge and customer service that comes with your product offerings has a value to your customers. Don't
y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products
e afraid to include that value in your pricing.
• Build your brand, not your promotional calendar. Focus your advertising on building the brand cache of your store, not specific sales or promotions. When customers think about you, make sure your advertising has left t
• Build your brand, not your promotional calendar. Focus your advertising on building the brand cache of your store, not specific sales or promotions. When customers think about you, make sure your advertising has left t
.
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
hem with the thought that you are a destination for premium quality and selection, state-of-the-art product knowledge, and outstanding customer service, and not price.
• And lastly, Define your mission around offering your customers premium specialty products, state-o
• And lastly, Define your mission around offering your customers premium specialty products, state-o
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
- the-art product knowledge, and the finest customer service, and you will insulate yourself from corrosive price competition, while protecting your margins and cash flow.
Once you tie these elements together, my guess is your CA$H picture will look a whole lot better
Once you tie these elements together, my guess is your CA$H picture will look a whole lot better
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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