Question

Suppose your institution is providing glucose and occult blood point-of-care testing. Explain how you will charge for this service and why.

Answer 1

The Glucose and occult blood test are two very normal tests suggested by the doctors for sugar level and blood loss in the body.

The Pricing strategy should be decided based on following parameters along with the details market research to get data about market size and competitive advantages

1) Cost of operations in getting each of these tests/ cost per test.

2) What competitors are charging for these tests

3) Target Market segmentation and their paying capasity

4) Value addition that can be done offered like , home collection, Round the clock servises, availability of reports online etc

5) Package or bundle services and cost factors number of tests

After analysing all these factors one by one and then a systematic evaluation of the situations Pricing decisions can be taken like skimming, where in we can price it above competition and get good margins. Alternatively if the competitions is great then we can charge a bit more than competions and create some value differentiators to charge a premium over it. If we want to capture market share quickly then we can do agressive pricing  initially.