Pricing & Product Strategies Designed for Winning Tenders
Medical device and equipment companies often place their primary emphasis on innovating within the industry. This is a natural area for them to focus on, of course. If you’re not staying on the cutting edge, it’s easy to fall behind.
While innovation is the driving force of any medical company, complementary tactics may be required to drive sales across specific markets. This is particularly true across sub-segments of the healthcare markets in Latin America.
While the newest, most technologically advanced equipment may be appealing to private hospitals in wealthy areas, equipment companies focused on volume sales in the region need to remember that c. 70% of medical procedures in Latin America take place in the public sector. And those public facilities are often trying to fill needs on a much tighter budget than private facilities.
All that being said, that 70% represents a huge opportunity for companies that approach the market with the right pricing and product strategy. With that in mind, here are a few ideas to pursue and formulate a sales approach for winning tenders in the region.
Strategy #1: There’s a place for “good enough”
Sure, this is not an approach you would ever take in your customer-facing marketing and PR campaigns, but when it comes to your “under the hood” sales strategy for the Latin American public sector, “good enough” can be surprisingly effective to drive sales.
Consider it this way: The public sector still wants the very best that they can afford for their patients. But the reality is that few institutions have the budget for the latest equipment with all the bells and whistles. However, if you can craft a strategy that provides institutions with high-quality, reliable devices at a lower price, then your chances are good at appealing to the mass market.
What institutions are ultimately looking for is a good quality-price ratio that fits their budget. Price is certainly important, but it’s not everything. If you can strike the proper balance between a high-quality product at the right price for your customers, then you’ll hit your mark.
“If you talk to private hospitals, they may want AI, robotics and the latest equipment. Other hospitals have very basic needs,” says the Mexico head of a leading medical device manufacturer. “You need to understand both sides to navigate the differences and approach them with the right services. We must be adaptable to help all patients as effectively as possible.”
Strategy #2: Build relationships through communication, training and service
Savvy salespeople know that even the more economical equipment models of multinational companies [needs rephrasing] still face steep sales challenges in the form of less expensive Asian products. This is where the tenets of old-fashioned customer service can come into play and tilt the table in your favor.
Your clients need to know that you’re not just selling them a medical device or piece of equipment: You’re selling them a team of dedicated professionals devoted to their facility’s success and their patients’ health and well-being. By taking the focus away from price and refocusing on factors such as continuous training, servicing and support that are offered along with the equipment, you can make yourself stand out from the competition even at a slight premium.
This is an approach that not only can win you more tenders in the short-term, but also lifelong clients. It’s also an approach that many smaller companies with limited regional presence will have trouble replicating.
Strategy #3: Portfolio sales to win accounts
Winning a tender on one piece of equipment is one thing. The true measure of long-lasting success in the market is to transition from device-based sales to account-based sales. This requires a complementary portfolio that can appeal to multiple needs of a facility or market at the same time.
“We have focused our investments into research and development to understand where our offerings can make the biggest difference, and how we can specialize to meet the needs of the organizations,” says Marc Duocastella, General Manager of Philips Mexico. “We also partner with healthcare professionals to determine which direction we need to go.”
Ultimately, this comes down to product diversification. But it must be informed diversification, based on open communication with clients and a keen understanding of the needs for individual markets or facilities. “We try to be comprehensive in our offerings, whether it’s related to vascular care, oncology or other devices, to meet the needs of a wide variety of patients,” says Sergio Arturo Dominguez Miranda, Head of Cardiovascular Care & Interventional Radiology, Latin America, for Siemens Healthineers. “We also know we are just one part of our patient’s care journey, so partnering with other companies to provide comprehensive care is important.”
Strategy #4: Build teams to win bids
Even with competitive prices, outstanding customer service and a diversified portfolio of products, there’s no question that the market out there for bids is more competitive than ever before. Local companies face not only challenges from overseas competitors, but lingering supply chain challenges that can impact everything from manufacturing to pricing.
Successful companies have realized that a paradigm shift is needed when it comes to assessing and participating in the bidding process. It takes more than just salespeople to get it done. If you haven’t already, you may consider allocating resources to building teams dedicated to winning accounts for your company. They can do the heavy lifting of building relationships, assessing needs, ensuring that your company has the product portfolio on hand to meet those needs, and then supporting that portfolio with the required training, servicing and other needed support. Put it all together, and it’s a winning strategy that can push tenders your way, even if your prices are a touch higher than the competition.
Next Steps
Contact GHI to learn more about international sales trends and their potential impact on the healthcare industry in Latin America. Our team of researchers can provide the analysis you need to gain valuable insights to support strategic decision-making in your industry.
