Medtech Pricing
Pricing can be a powerful evergreen tool to drive growth and profitability for medtech companies, but getting pricing right is nuanced and complex, and it varies with market context, presenting a persistent challenge for many medtechs.
L.E.K. Consulting helps medtechs with a full spectrum of pricing and revenue optimization strategies, including, for example: price setting for novel medical devices and technologies, holistic pricing optimization strategies, SKU performance and rationalization analysis, preparation for pricing negotiations, and pricing execution.
Given the evolving state of the medtech landscape (e.g., greater focus on showing value/role of value analysis committees (VACs), growth of private label, care shifts to ASCs, growing consolidation of hospitals), we believe medtech companies need greater near-term focus on enhancing their pricing strategies, by apply an intentional, strategic, customer-led approach that is rooted in market dynamics and context.
Our approach to pricing strategy
Because medtech companies face a number of complex pricing questions, we examine the most pressing issues these companies face:
- What is the right price point for our product(s) and/or services?
- How should we optimize our pricing strategy for an individual product or portfolio?
- What new pricing models/strategies do we need to consider and deploy?
- How should pricing strategies vary by care setting?
- How do we create data/-systems/decision-making processes to maintain disciplined pricing approaches?
We leverage our deep medtech industry knowledge and unique experience working within the industry, applying robust analytical and research techniques. With decades of strategic experience within the healthcare and medtech spaces, we know that each pricing problem is unique (e.g., reimbursement context, market and competitive dynamics, etc.) and solutions are only useful if there are executable actions to take.
Each of our case teams comprises Medtech industry experts and hands-on pricing leadership who are integrated into a highly customized team, suited to our clients’ particular needs. Pricing is approached within the context of the client’s broader growth goals (e.g., penetration goals for a newly launched device, etc.) to assess trade-offs and pricing initiative impact.
Our capabilities
Our capabilities span the Medtech arena and the spectrum of pricing issues. From broad pricing lever assessment to channel-specific pricing strategy development to strategic competitive response, our medtech and pricing specialists have a broad array of experience to inform any strategic need.
