Pricing strategy for healthcare and medical devices
Hospital procurement and public tenders push hard on price, while the clinicians who value your product rarely sign the contract. We build the value case for each stakeholder, then set the tender, contract and rebate rules that hold margin.
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Where healthcare margin goes
Sales teams end up defending price instead of proving value to each stakeholder. Four patterns recur.
Procurement and tenders set the terms
Hospital procurement, group purchasing and public tenders compare price per unit, and the bid is written to win on that comparison.
The people who value it do not sign
Clinicians value outcomes, reliability and support. Procurement, nursing and finance weigh different things, and each needs its own value case.
Contract terms that grow every year
Contract pricing, rebates, promotions and pack pricing that become more complex with each renewal, until nobody can say what a customer pays net.
Cost-plus on the products customers value most
Tender and pack prices built up from cost, which leaves margin unclaimed on the lines with the strongest clinical case.
How we help
Diagnose
Net price by contract and customer, a review of rebate and promotion spend, and a Customer Value Discovery with each hospital stakeholder: clinicians, procurement, nursing and finance.
9PE Pricing DiagnosticOptimise
Clear rules for tender, pack and contract pricing, so bids reflect value and competitive position rather than cost-plus habits, and rebates that no longer change behaviour are removed.
Project BlackbirdEmbed
Approval rules, decision rights and reporting that keep pricing consistent across ANZ teams, and sales training in value conversations with each stakeholder.
Pricing Capability & GovernanceOur healthcare work covers medical device manufacturers, medical consumables and healthcare distribution in Australia and New Zealand.
Questions we answer for healthcare businesses
How do we price a tender without defaulting to cost-plus?
Set the tender rules before the tender arrives: the floor, the value case for each line and the competitive position you are bidding against. Multigate identified A$4.2m–6.8m of EBIT opportunity by moving tender and pack pricing from cost-plus to value-based rules.
How do we make the value case to procurement as well as clinicians?
Prepare a separate case for each stakeholder. Clinicians weigh outcomes; procurement weighs total cost, supply security and contract compliance; finance weighs budget and risk. Stryker's Australian sales teams moved from price-led selling to value conversations with each hospital stakeholder using a structured Customer Value Discovery process.
How do we review rebate and promotion spend?
Measure what each rebate and promotion changes in what customers buy, and remove those that change nothing. Sigma Healthcare identified A$1.5m–3.0m of quick-win EBITDA from rebates and promotions.
How do we keep pricing consistent across ANZ teams?
One set of approval rules, decision rights and reports across both countries. Boston Scientific's ANZ teams built pricing capability and governance this way and identified A$2.7m–4.2m of margin improvement within the first 12 months.
How does an engagement start?
With the 9PE Pricing Diagnostic, an 8 to 12 week review that sizes the margin opportunity in A$, scores pricing capability and delivers ranked quick wins. Price optimisation, governance and training follow where the diagnostic shows the return.
Why a pricing specialist rather than a global firm
Method from 160+ engagements
Built since 2007, including healthcare work for Boston Scientific, Stryker, Sigma Healthcare and Multigate.
Senior people throughout
Ron Wood leads every engagement with a senior associate. The work is not sold by a partner and handed to a junior team.
Fixed fees
The fee is agreed before the work starts, and the risk of overrun sits with us.
Results published by name
Each result on this page comes from a named client and carries its label: realised, identified or capability built.
Healthcare case studies
Identified: annualised opportunity sized in the diagnostic, before implementation. Capability built: a change in how the team sells, with no dollar figure published.
EBIT opportunity from moving tender and pack pricing from cost-plus to value-based rules.
Margin improvement within the first 12 months, as ANZ teams built pricing capability and governance.
Australian sales teams moved from price-led selling to value conversations with each hospital stakeholder.
Quick-win EBITDA from rebates and promotions, with A$25m–75m of longer-term potential from value-based pricing.
Talk through your next tender
A 30-minute call with Ron Wood on how you price tenders and contracts today, and where the first gains are likely to be.
Let’s work together
Whether you're ready to optimise your pricing or want to explore what's possible, we'd love to hear from you.