Advice You - Business

Some salespeople actually agree with customers when they complain that the prices their company is quoting are too high. After all, when t

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

hese salespeople are out in the marketplace making purchases themselves, they usually look for a bargain, too. They are actually price buy

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

Examples of combination products may in

rs themselves.

When they buy furniture, they go to a discount furniture store.

If they were to buy a suit of clothes, they would go to a

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

n outlet mall to purchase last year's styles.

And when they need building materials for a home project, they might even spurn their own e

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

ployer and head out to a local salvage yard in search of discontinued merchandise.

What is a price buyer, anyway?

My definition of a pri

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

Combination pro

e buyer is someone who almost totally disregards all aspects of the purchase except for the price. With little regard to how much their ti

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

me is worth, price buyers will spend endless hours trying to save a buck. You know, the kind of people who will drive all the way across t

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

wn and burn up $5 in gasoline just to save fifty cents on a case of dog food.

And they can make some of the most highly convincing argume

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

ts you've ever heard that the only way that they will ever take a prospect away from the competition is by using a low-ball price to give

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

them a marketing advantage.

They are far more effective at selling the boss on cutting the price than they are at selling the customer on

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

paying the company's asking price.

Do you have any salespeople who fit this description? If so, be careful, because it's likely that they

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

Following aspects would a

will take the customer's side every time. When their gross margin is compared to your more quality-conscientious salespeople, they will al

dd to the challenges in developing combination products:

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

most always be near the bottom of the list.

Price buyers rarely think of value. They have never grasped the concept that in the long run,

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

people who concentrate on price to the detriment of all else will usually pay more.

When interviewing for salespeople, consider adding qu

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

stions like these to your list of interview questions:

• How many new customers did you attract to your company last year?

• Approximate

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

ly how much new business -- in dollars -- did these new customers purchase last year.

• What techniques did you use to attract these new

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

Professional from academic institutions, pharmaceutical industries, health care indust

ustomers to your former company?

• How competitive do you believe your former company's prices were?

• When you run into a pricing objec

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

ion, how do you typically handle it?

• What is your gross margin running so far this year?

• What do you believe that people mean when 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

hey say that there is a big difference between true cost and the price on the face of the invoice?

Recommendation: Don't be guilty of wis

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

Companies that provide selfless information through particip

ful thinking. If you don't get the kinds of answers you're looking for when you ask these questions, find yourself another sales candidate

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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What is a Remarkable Business? My definition of a remarkable business is - a business that serves its customers like no other on the planet.

A few years ago, one of my competitors, a consultant located in Ohio, would have his prospects call me to compare his prices to mine. He knew I charged more than twice the fee he quoted: “$1,200 per day.” I never put two and two together and connected my disappearing prospects to this guy’s manipulations, until he disclosed his strategy to me, in a moment of boastng and rare transparency. He took great joy from the fact that his ACTUAL rates were fifty percent higher than mine! How did he do it? Dr. Gary S. Goodman, best-selling author, popular keynote speaker, seminar producer, and consultant to the Fortune 1000, explains how this was accomplished.

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Advice You - Don't Hire Salespeople Who Are Price Buyers Themselves

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