1. Case Study: Enabling a Medical Device Manufacturer to Optimize the Price of Catheters to Drive Profitability
OBJECTIVES
Gauge if there is an opportunity to increase the price of atherectomy catheters offered by the client
Determine the optimal price increase
STRATEGY
Using OSG-MARGIN, we conducted a 30-minute online survey with decision makers who were involved in the purchase of atherectomy catheters at their facilities. This survey included 2 key sections:
A choice based conjoint exercise where price, brand and rebates were varied to-
Obtain the preference for the different price points
Combine results from this exercise with secondary information to determine the volume and market share impact at each price point
Questions to capture overall satisfaction and perceptions on key benefits of the client brand vs. competing brands to determine if the client brand is perceived to be superior than competing brands on things that matter to customers

2. Case Study: Enabling a Medical Device Manufacturer to Optimize the Price of Catheters to Drive Profitability
RESULTS
It was found that overall satisfaction and perceptions on key benefits were significantly higher for the client brand vs. competing brands. A brand that is perceived to be superior should not be the cheapest product in the market. Hence, OSG recommended that a price increase is justified
Increasing price by 26% would result in a marginal decrease in preference, a marginal reduction in volume and a marginal increase in revenue. Beyond a 26% increase, the preference decreased significantly. Even with this increase, the client brand would have been priced lower than the competition
The client decided to implement the recommended price increase and didn’t see any decrease in volume or share thus increasing profitability. They offered loyalty rebates to soften the price increase but slowly withdrew them and are now appropriately priced for the value they offer to the clients