Project Experience

Determining Price and Cost Structures

Client Situation
Our client, a key player in the cost-conscious hospital supply market, sought to identify product costs and the sales/marketing techniques used by its competitor to push its alternative drug delivery system. The client was interested in learning which promotional techniques, incentives, and rebate programs were offered to hospital pharmacies to encourage a product trial or switch.

Fuld Approach
By interviewing sources at hundreds of national hospitals, we located eight hospitals that used the product and several others that had been solicited by the competitor's sales representatives. Sources were open to discussion, particularly regarding the rebate programs and product bundling, which our client had suspected was a technique being used by its competitor.

Benefits and Implications
Through our many discussions, Fuld & Company learned actual contract prices as well as how any rebate programs affected the price. This information was crucial in helping our client re-design its own program to not only address customers' pricing issues, but also their product bundling preferences. For more information about price or cost structures in the healthcare industry, contact either Anthony Nagle at tnagle@fuld.com or Cynthia Gerber Tomlinson at cgtomlinson@fuld.com