The secret to setting the right price for an otc healthcare product or medical device
Price Sensitivity Meter (PSM) is a technique that enables to set the ideal price for your product
In real life, price is the value that an individual is prepared to pay for a product or service. Deciding on the right price takes three main criteria into account:
- Cost price of a product or service
- The margin the manufacturer wishes to apply
- The amount the client is prepared to pay to acquire the product or service
Getting the price right plays a vital role in the Marketing Mix. The goal is to identify the price that the greatest number of potential clients find acceptable for a given product or service.
Price Sensitivity Meter (PSM) is a technique that enables to identify prices which are considered too low, good value, expensive and too expensive and thus obtain preferences.
In Healthcare Market Research, price studies are of great interest within the framework of healthcare products and medical devices sold OTC and thus directly accessible to consumers.
These are fundamental quantitative studies that we undertake on robust samples of potential consumers of a wide variety of products.
To avoid the two major price pitfalls :
under-pricing and overestimation