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Medical Device Manufacturer Pricing Strategy Case Study

Medical Device Manufacturer Improves EBIT by $1.5 Million

The Problem:

A leading NYSE-listed medical device manufacturer with a strong competitive position was unable to improve prices over a seven year period. Complicating matters, the company had locked into a long-term price freeze agreement.

The Solution:

Our pricing consultants measured customers’ perceived value of the company’s products and services to determine that 82% of the company’s non-contract business could support a price increase. The process also identified specific accounts that could not support an increase, implemented a market communications program, and trained and coached sales representatives. A pilot program was initiated to test the new price levels through a small group of thought-leading sales representatives. The team was instantly successful, and the remaining sales team members responded with confidence.

The Results:

A price increase exceeding 6.5% that yielded $1.5 million in incremental income.