Augustine Medical, Inc.

When innovations are made, companies sometimes struggle with pricing. The innovations may or may not meet the consumers desires. Medi-cult developed In Vitro Maturation (IVM) technique of making women pregnant. However, the success rate is low. Furthermore, the women are reluctant to repeat the process once the first trial fails. It is also expensive. A major threat to Medi-Cult is the stiff competition by other pharmaceutical companies. Good pricing criteria should be adopted to compete effectively while improving on meeting consumers’ demands.

Price skimming is a strategy which firms often using when starting enter into the market, which offers high price at the introductory stage of the production cycle and lowering the price when competitors have been attracted by the high profit margin to enter the market (Ma & Hernandez 2011).

b. The prevention and management of unintended hypothermia remain a nation priority in preventing surgical site infection, and it has been designated as an SCIP quality measure. (Philips, 2015)

Thirdly, option is to strategically adjust the prices of their products because consumers are often very price sensitive. By doing so the company can either create more value that defines the quality and quantity of the product.

Some of the advantages of an initial high pricing strategy are: 1) the high initial price does not attract competitors from the market 2) it communicates the image of a quality product 3) can extract the maximum revenues from the market while facing no competition from other vendors, 4) leaves room for initial promotions or bulk discounts. By 1979 ODI would have already gained enough market-share to effectively use economies of scale to bring down their average costs allowing them to further lower their prices. A lower price will discourage firms from entering the market as potential competition.

Temperature control is significant in the critically ill patient because studies show that an increase in temperature can mask symptoms of underlying disease processes. There are situations when hypothermia is medically induced to precipitate healing. It has been shown that in neuro and post cardiac arrest patients a lower temperature and even mild hypothermia can improve overall outcome. (CITATION) Trauma patients are at an increased risk for hypothermia due to blood loss and overall trauma on the body systems.

• Many competitive technologies are available for the prevention and treatment of postoperative hypothermia. The fall into the two categories:

Shivering is a common problem during spinal anesthesia. It is the hypothermia that actually lowers the threshold for shivering which induces tachycardia, hypertension, and increase oxygen consumption by 400–500%. [1] In spinal anesthesia, there is peripheral redistribution of heat, loss of vasoconstriction below the level of the block with increase of heat loss from body surfaces, and altered thermoregulation with decrease in shivering thresholds. [2]

The limitations of these studies are that many were not generalized to operative patients only instead were constructed around one type of surgery. Some of the findings can be argued that to be not applicable for patients undergoing a different type of surgery. The population of the studies can also be disputed in each study. Two studies concentrated on either neonates or adult participants, which can lead to limitations due to different hypothermia definitions. Because neonates and infants are at higher secondary health risks due to hypothermia, appropriate rewarming techniques are essential to reducing the risk of morbidity and mortality. Lastly, temperature monitoring was completed differently in each study resulting

This strategy, also known as high-priced strategy, refers to a price much higher than the cost of new products to market in order to obtain high profits in the short term, return on investment as soon as possible, and then gradually lower the price of the strategy. At the time of the Chinese cosmetic market, the price a great impact on consumers, so the new pricing strategy is bound to become P & G 's strategy in the Chinese market turning point, P & G began to adjust the retail price of its products, it follows the following three principles:

Augustine Medical, Inc. was founded by Dr. Scott Augustine, an anesthesiologist from Minnesota, in 1987. The company was created to develop and market products for hospital operating rooms and postoperative recovery rooms. The company provides innovative solutions to combat postoperative conditions such as hypothermia. Medical research indicates that 60 to 80 percent of all postoperative recovery room patients are clinically hypothermic. Hypothermia is caused by a patient’s exposure to cold operating room temperatures that are required by surgeons to control infection, and for the personal comfort of the surgeon. Hypothermia can also be a result of heat loss due to

Since the demand for the brand has traditionally outstripped supply, the company can easily and without loss charge a premium from its customers. As mentioned the company sells its products at a 100% markup and which in turn translate into increased revenues.

As mentioned, the objective is to have a price that reflects value; we are competing based on higher quality rather than lower cost. Consequently, if a low-cost strategy was used for our products and services, this will discourage our customers from thinking that the product and services are of high quality. This pricing strategy will not have a negative impact on the target customers as they are insensitive to price due to the nature of the products and services, and their buying decisions are more dependent on the value and quality of products rather than price.

2. What is the difference between a skimming price strategy and a penetration pricing strategy? Under what circumstances is each most likely to be used?

new product in our country and this is already popular inother countries we will use “Market Skimming” pricing strategy. We hope that buyer willing to pay our settled price.