Determining The Optimal Price For The Uricap Products
2246 Words9 Pages
To determine the optimal prices for the UriCap products, the team used competitive pricing, both indirect and direct, custom willingness –to-pay, cost plus pricing based on distribution channel partner needs, and economic value analysis. Direct competitor pricing, which was only applicable to the UriCap-M product, was determine through secondary research. On the other hand, primary research was used to determine indirect competitor, or substitute, pricing. A combination of primary research and secondary research was used during economic value analysis while customer willingness-to-pay (WTP) was determined through an online survey.
To better understand customer’s willingness-to-pay, a survey was developed and given to hospital and nursing home professionals who had some knowledge of the cost of care. Since most care givers are removed from the financial side of the business, it proved rather difficult to find participants willing to take the survey. With that said, ten professionals completed the survey which, along with the results, can be seen in their entirety in the Appendix and provided spreadsheet.
The survey contained two sets of questions. The first set was designed to gain and understand of what the customers thought they were currently paying for urinary incontinence care. This included the actual cost of diaper and catheters, as well as secondary costs such as the cost of nurse/care giver time and the cost of infection/bedsore