Question

The York College Medical Center has launched a new Cosmetic and Reconstructive Services Department. We are trying to compete with our fellow medical centers by tapping into the patients who might want or need these services. Instead of going to NorthWell or Mt. Sinai, we want them to come locally, to their neighborhood medical center. We are local, speak their language, state of the industry, clean, kind, experts and all the other superlatives one looks for in healthcare.

We’ve done our homework (market analysis) and found the three most commonly researched procedures by our geographic area are breast reduction, breast enhancement and butt enhancements. Since breast reduction is a medically necessary surgery for many, and covered by insurance, we hope patients will pick us based on the above attributes. However, breast and butt enhancements are cosmetic and are a self-pay item.

NorthWell charges $5,000 for the procedures and Mt. Sinai charges $6000. Based on the pricing strategies you learned in Chapter 9, which strategy would you choose and how much should we charge in order to get a market share of these procedures? Explain why you chose this strategy and price.

Please answer this question in a minimum of 3 full paragraphs.

Answer 1

Ans :- Pricing methodology alludes to technique organizations use to value their products or services. Decide low cost so as to pick up market share since snatch the market portion of northwell and Mt. Sinai is our marketing methodology .Once this is accomplished, the cost could be expanded. Our hospital need to snatch enormous quantities of patients to make it worth their time and energy, so offer limited rates so as to get individuals to pursue their services and system. Once there is countless patients costs could be bit by bit goes up.

This pricing stimulates the market development and catch market share by offering Cosmetic and Reconstructive Services at low costs. The York College Medical Center has utilized as a serious weapon to pick up market.

Practically all organizations, huge or little, base the cost of their products and services on creation, work and publicizing costs and afterward add on a specific rate so they can make a benefit.

- A deliberately considered pricing procedure is essential to streamlining the two deals volume and benefit. Cost is one of the most significant manners by which customers pick between various products and services, and knowing the optimum value that you should charge to expand deals and benefits is vital to beating the opposition.

• Prizing strategies incorporate the accompanying five strategies. :-

- Cost-plus pricing— Just ascertaining your costs and including an increase.

- Competetive pricing— Setting a cost based on what the opposition charges.

- Value based pricing— Setting a cost based on how much the customer accepts what you're selling is worth.

• Strategies you can browse while deciding your costs :-

- Cost based on esteem.

- Cost based on recognition.

- Cost with the pattern.

- Expertise to raise or lower costs.

- Utilize the high-low system to pull in customers.

Value lower to rule your market just in the event that you have a drawn out cost advantage.