Term
| what the business charges patients for products/services |
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Definition
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Term
| expenses incurred by the practice to obtain goods or provide services |
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Definition
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Term
| when price exceeds the cost of goods/services |
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Definition
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Term
| Profit = (___ ___) (___) -___ |
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Definition
| Sales Volume; Price; Costs |
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Term
COST-PLUS PRICING:
-Uses ___ to determine price
-Method: Sum all costs for goods then tack on a ___ amount for profit
-Advantages: ___ and ___, aka markup pricing
-Limitations: yields “___” financial performance; difficult to know the true cost of goods because products costs ___ relative to the number of units sold; costs vary across manufacturers
-Recommendation: use this method as a ___ price to charge |
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Definition
| cost; markup; simple; popular; mediocre; CHANGE; minimum |
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Term
| Here's an example of cost-plus pricing: |
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Definition
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Term
| individuals who seek treatment & advice |
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Definition
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Term
| individuals who seek advice |
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Definition
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Term
| individuals who purchase from a business |
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Definition
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Term
Target Pricing:
-Uses ___ to determine cost
-Method: determine how much to charge for product, then subtract the wanted ___ from the price to get the maximum cost can pay to deliver the product
-Example: price of a hearing aid is $2500; $5000 for pair of hearing aids; if the business requires a 100% markup, then must get each pair of hearing aids for $___ or less
-Advantage: requires a practice to work ___
-Limitation: may be difficult to reach a ___ cost (even with buying group); business has to design the process of acquiring hearing aids around ___ the costs; may cut corners and use ___ products |
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Definition
| price; profit; 2500; efficiently; target; meeting; cheaper |
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Term
-___ cost hearing aids: state-of-the art computer chip, all features, 20-35 channels, 7 automatic programs, TV & phone connectivity
-___-level hearing aids: 16 channels, 3-4 programs & other features; but fewer features than premium products
-___-level hearing aids: current generation but fewer features than mid-level
-___ level: older technology, most budget-friendly price |
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Definition
| Highest; Mid; Entry; Budget |
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Term
| What are some factors that influence the selection of technology level? |
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Definition
| Severity of loss, life style, speech understanding, LDLs, and more |
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Term
TYPICAL PRODUCT LIFE CYCLES:
-BTE: __-__ years
-ITE/ITC: __-__ years
-CIC/IIC: less than __ years |
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Definition
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Term
Pricing Structure:
-Pricing structure: Develop a way to show ___ in tiers
-Goal: Try to get the best possible ___ per tier
-Key idea: ___
-___: how the differences between tiers is presented to
patients.
-___: possible benefit the listener gives up with lower level |
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Definition
| differences; price; fencing; Fencing; Fence |
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Term
Price Bundling:
-If there is demand for 2 separate products, it makes sense to
group them together into __ product
-Examples? |
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Definition
1;
-Example: hearing test plus hearing aids
-Example: batteries, extra warranty, accessories with hearing aid |
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Term
| What are some examples of unbundling? |
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Definition
-Example: price of hearing test is separate from price of hearing aids
-Example: price of hearing aids, delivery/fitting fees, etc. are
itemized |
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Term
Trade-Offs of Bundled vs Unbundled Fees:
-MORE likely to capture reimbursement from by a third-party payer when fees are ___ (Abel, 2011)
-Unbundling ___ costs to patients who need more time
-Providers concerned that patients will NOT follow up when needed due to ___ ___ |
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Definition
| UNBUNDLED; spreads; additional costs |
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Term
| What are the 4 purchasing stages? |
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Definition
| Organization, gather information, selection, and fulfillment |
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Term
-____ negotiate hearing aid prices (Staab, 2000)
-_____ to negotiate warranty, follow-up visits, batteries (Staab, 2000) |
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Definition
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Term
7 Pricing Principles:
1. Cover ___ costs
2. The ___ dictates changes in price
3. Charge the ___ price patients will pay
4. Constantly ___ prices & change as ___
5. Establish prices that ensure ___
6. If individuals perceive significant ___ from a product, they will pay more
7. Patients buy products based on ___, not features |
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Definition
| all; market; maximum; check; needed; sales; value; benefits |
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