Twelve Pricing and Profitability Challenges for Life Science Companies
Life Sciences Pricing Survey 2012 Insights
As part of the EPP Pricing and Profit Optimization Forum for Life Science companies in Switzerland, May 2012, Deloitte conducted a survey with the management of leading Life Science companies. The questions covered areas from pricing strategy, price setting, price execution, pricing organization, supporting IT systems to competition and market. Learn how those companies look at current trends and how they rate themselves against competition.
Improve your pricing capabilities by addressing twelve key considerations for the pricing and profitability challenges:
- Adjust pricing strategies to address dominant market trends and prepare to adjust for changing market environment mid-term.
- Align your pricing strategy to your corporate strategy and learn from other, more advanced industries.
- Consider a more aggressive and proactive pricing principle in some therapeutic areas and geographies.
- Use quantitative analytics to identify the optimal price/volume mix and target the right customers.
- Develop a cross-country price architecture with clear price setting methods including parallel trading approaches and reference pricing.
- Define list prices at a country, regional and global level to make prices and discounts visible, comparable and defensible, both internally and externally.
- Use pricing to find new ways to increase profitability and step out of the current margin and profit squeeze spiral.
- Simplify an overly-complex discounting structure and think of new ways to engage clients in risk sharing agreements rather than volume discounts.
- Introduce targeted, more effective sales force incentives beyond volume and revenue targets.
- Identify relevant stakeholders and understand the roles they play in the decision-making process to increase sales and tender success rates.
- Reflect the potential of pricing by embedding it into the company’s organisational structure.
- Make pricing a part of your organisation’s DNA, led by a Chief Pricing Officer closely interlinked with other business functions.
Download the full report to find key questions for each challenge targeted at the most burning pricing issues in your organization.