You’ve got the product carefully placed on clean shelves, ready for your patients to burst through your doors and fight over like any cliche Black Friday scenario. And yet, there your products are months later, collecting dust with barely a glance. You know these products are tools your patients need, and you know they’re purchasing them from somewhere else. What could you possibly be doing wrong?
While you can go through the seven tips to help you become a better clinical retailer to make sure your selling savvy is on point, you might also need to consider your pricing strategy. Are your price points setting you up for success? How competitive are you with the markets you’re up against, like other stores and online retailers? Jonathan Miller, Director of Sales and Marketing at Performance Health, has helped countless clinics across the country establish aggressive and fair pricing models through the Performance Health Edge program. Today, Jon is sharing his three biggest and best tips to pricing products that sell in your clinic.
How to establish pricing in a clinical retailing environment
1. Don’t go above the MSRP
“If the manufacturer has published their own Manufacturer’s Suggested Retail Price (MSRP), then they’ve established a guidance for the market on pricing of that product,” Miller notes. “It’s a way for the manufacturer to say, ‘my product has a specific value, and we’re being transparent about it.’ More importantly, they’ve established a virtual max price for their products.”
“If you choose to price above the MSRP, you should know that you’re trying to sell the product for even more than the manufacturer would sell directly to your patient. This can put you in a dangerous position, as it will drive a perception that you’re guilty of price gouging. If you’re not aware of the MSRP for a certain product, go to the manufacturer’s website and see if they have any pricing sheets available. Even better, if they have an e-Commerce site, see what prices they’re selling online.”
2. Check out your local market
“In capitalism, the true price of a product is ‘whatever the market will bear,’” said Miller. “You should look around your clinics’ local area and find out how your competitors have priced identical or (very) similar items to you. To maintain a competitive position with your customers, you should be pricing your products within a reasonable range to ensure you aren’t eroding potential opportunity (pricing too low), or blocking yourself from a successful transaction. This is a balancing act; you don’t have to be the lowest price out there to succeed. More importantly, you need to price your goods AND services at a level that’s appropriate to the value of your customer base.
3. Consider service vs. products
“Don’t forget who you are,” Miller warns. “As a healthcare provider, your unique selling position to your patients is the SERVICE you provide. Your motivation for selling products should only be to enhance the experience of your patients. You shouldn’t be selling products that don’t match up to your service brand, and you shouldn’t be concerned with the habits and behaviors of product retailers.”
“Big Box stores are designed to sell tens of thousands of products at low prices, and major e-commerce retailers practice the same model. You may see these folks sell similar products at lower prices than you, and that’s ok. They are not your competitor. Remember, they don’t provide healthcare services. You do, and that means you have a vastly competitive edge when recommending Biofreeze® or TheraBand® products to your patients. You’re not competing on price. You’re competing on trust, and that commodity is more valuable than gold.”
Want to get started in clinical retailing or need a stronger model? Our Performance Health Edge program is built to help you ‘edge’ out the competition and comes complete with thorough education and a dedicated support team. Contact them today to learn more!