Given Attractive New
Reimbursement Levels, How to Price to Maximize Penetration and
Profit?
UrolCo is a publicly held manufacturer of systems for treating certain urological disorders.
The systems includes capital equipment and pre-procedure disposables.
Medicare had recently begun to allow for in-office reimbursement for certain key procedures
done with UrolCo (and competitor) products. Substantial increases in patients were expected, and there were several
possible pricing options available. But competition was intense.
How to Overcome 'Negatives'?
Because of previous missteps, the company's image and product reputation had been
somewhat tarnished in the past, but recent advancements had won some praise.
The CEO hired Quattro to determine a pricing
strategy to help speed penetration and capture share from
competitors.
Refine Product Positioning.
Devise New Pricing Strategy.
Worked with CFO and Marketing VP to define several viable pricing alternatives.
Interviewed customers to understand treatment choices, both current and prospective.
Quantified how demand would vary assuming these pricing options and chose optimal alternative to maximize profit.
Also used in-depth clinical interviews to uncover unique strengths of product for particular segments of the disease,
resulting in new clinical target population and positioning.
Higher Revenues.
Successful Sale of Company.
Company implemented pricing strategy as well as new positioning ideas.
Within a year of project completion, UrolCo's market capitalization more than doubled;
and the company was pruchased by a larger competitor.
