Advice You - Business

Don't consider your dog inventory to be savings

Everyone makes mistakes when buying inventory. Some

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

items sell consistently well while others move slowly. Many retailers have a hard time discounting the slow

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

Examples of combination products may in

movers and dropping the item from inventory. They feel that because the item is still in stock and may eventu

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

lly sell at the desired price then the accumulated inventory is like a savings account. If you consider your

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

poor selling items as savings, however, you have invested your life’s work in a poor investment.

What happen

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

Combination pro

s is that over time your inventory mix gets choked with the accumulated poor sellers. You inventory is compo

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

ed of items past customers avoided in favor of better sellers.

Jewelers do this all the time. They buy a par

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

cel of (5) one carat diamonds and apply a standard markup to them all. They sell the three nice cuts fast, t

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

hen sell the average cut in a normal time, and the poorly cut diamond sits in their inventory as "savings". O

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

er time, the dealer's inventory consists of these poorly cut stones but is supposedly worth $100K. In reali

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

ty, however, it is worth less than that because the $100K represents the book value and not the market value.

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

Following aspects would a

The better method is to sell the premium stones at a premium price, the average stone at an average price,

dd to the challenges in developing combination products:

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

nd the poorly cut stone at a discount. It averages out to a normal profit but keeps all the money in play so

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

you can purchase the next parcels of five diamonds. The need for this system becomes even more critical when

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

the inventory is subject to spoilage like clothing. At the beginning of the season people pay a premium but

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

by the end of the season the retailer is looking at carrying these off season items for six months in storage

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

Professional from academic institutions, pharmaceutical industries, health care indust

. Worse, the items can go out of style before the next season and may never sell.

Large retailers already i

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

mplement this system of selling high at the beginning of the season and discounting to liquidation at the end

.

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

of the season. Even if your goods are not seasonal, your cash flow and turnover will benefit by selling the

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

Companies that provide selfless information through particip

best goods at a premium and the dogs at a discount until liquidated.

Don't let your dogs become your savings

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.adviceyou.org.ua/article/28340/adviceyou-Pricing-By-Demand-Instead-of-By-Purchase-Price.html">Pricing By Demand Instead of By Purchase Price</a>

BB link (for phorums):
[url=http://www.adviceyou.org.ua/article/28340/adviceyou-Pricing-By-Demand-Instead-of-By-Purchase-Price.html]Pricing By Demand Instead of By Purchase Price[/url]

Is it possible to fix service problems from just one vantage point, say just by training your employees in customer service skills? Or does it require a more holistic approach that looks at all the points of entry into your organization such as hiring, vendor relationships and more?

A good, well-drafted business plan is essential for starting an entrepreneur magazine business. The plan has to be detailed, and professional help can be sought in order to get it right. Understanding the plan and carefully implementing it are absolutely essential.

Hiring an employee is a part of just about every company, big or small. Whether you are working out of your parent's basement or a multi-million dollar corporation, there are a few principles that EVERY boss should follow!

Tags

Links

Advice You - Pricing By Demand Instead of By Purchase Price

Related Articles: