MedPro In The News!

MedPro has been featured in many well known publications for our disruption in the marketplace, this is good news!

As Seen on:

https://www.business.com/articles/how-to-identify-industries-that-are-ready-for-disruption

Is Better Pricing All That Stands Between You And Market Domination?

Every long-established industry is rife with competition, and most competitors have taken advantage of the free and open environment of the Internet to try to establish a stronger name for themselves. That means modern consumers have practically unlimited information at their fingertips.

This environment gives consumers have the means and the motivation to research every buying decision they make, from micro-transactions with retailers to major partnership formations for their companies.

With such a rich network of competitors working against you, you have only two primary options to secure the lion’s share of the market. The first is to offer something that no one else is offering.

For startups and new industries, this is a legitimate possibility, but for most of us, that level of distinction is nearly impossible to attain, or even imagine. So that leaves us the one other option: offer roughly the same thing your competitors offer, but with a more attractive and objectively measurable value.

How can you make your offerings more valuable? For some industries, this means innovating, but again for most of us, there’s a simple way to provide a better value: sell at a better price. Since consumers have access to all the information up front, if you offer a similar product or service for a significantly lower price, no competitor will be able to touch you.

Simple, right?

 

 

The Challenge With Pricing

You already know the primary challenge with this approach: You can’t just lower your prices. As the Small Business Administration discusses, the main way to determine pricing entails a combination of your costs, industry averages, and projected gross profits.

It usually takes a few rounds of experimentation before you can settle on a final price, so it’s not as if you came to your pricing schedule by accident. Pricing is at the center of a delicate structure that ensures your company’s profitability. If you were to lower your prices too dramatically, you’d eat into your corporate profits, or worse, you’d start losing money.

There are a few possible solutions in this situation. Filip Boska, Co-Owner of King of Maids in Chicago says “You could cut your profits to a bare minimum in the hope of increasing your volume, but that’s not going to help you in the long term unless you raise your prices again, eventually.”

There are a few possible solutions in this situation. You could cut your profits to a bare minimum in the hope of increasing your volume, but that’s not going to help you in the long term unless you raise your prices again, eventually.

You could accept a short-term loss and raise your prices later, but the odds are most if not all of your customer base might switch to a competitor at that point.

The only sure way to cut your prices and dominate the competition without sacrificing your all-important profit margins it to cut your costs. Please be clear that this shouldn’t mean overworking your staff, laying people off, or moving your business overseas.

It means adjusting your business model to run more profitably, and passing on the savings to your customers. Consider the following concrete examples of how firms accomplished this feat.

Example One: Netflix

Though Netflix achieved market differentiation through technological innovation, its biggest factor for success was its price level. When the company first emerged, customers could rent many more videos at a time than they could from a brick-and-mortar competitor like Blockbuster.

This gave Netflix an early advantage. Because it operated mostly online, it had much lower overhead and could choose to charge less than a more solidly established competitor.

Later, Netflix began out-competing an entirely separate sector: the cable industry. Rather than charging customers upwards of $40 or $50 a month for cable services, Netflix offers unlimited streaming of select material for as little as $8 a month.

For a few years, Netflix could barely afford to operate at this rate, thanks to painful, difficult negotiations. So it opted to produce its own in-house content, which greatly improved efficiency and gave Netflix stricter control over its budget.

Example Two: Uber/Lyft

Until recently, the taxi industry was all but stagnant. Cost of gas, drivers, and car maintenance remained more or less consistent, so the price of a taxi ride remained high.

Then Uber stepped in (and Lyft joined the fray shortly thereafter) and redefined the industry model, cut costs, and offered users much lower prices for a ride downtown.

The first change was to use independent contractors, which freed up lots of money that would have been committed to salaries. The second was limiting physical infrastructure: rather than owning taxi dispatch hubs or even taxis themselves, contractors on the Uber platform own their vehicles and keep them at their homes.

Granted, Uber and Lyft operations also involved a technological advantage that served as a differentiator from typical taxi companies, but their cost-cutting measures are primarily what enabled them to provide ultra-competitive pricing.

Example Three: MedPro Disposal

Finally, there’s a recent new company making inroads in the rarely discussed medical waste disposal industry. Medical waste disposal is a necessary service, and one that hasn’t changed much over the past few decades.

There wasn’t much room for tech innovation or basic differentiation, so MedPro Disposal found ways to offer lower prices as a way to get an edge on the competition. MedPro Disposal offers pricing that averages at least 30 percent below its competition, and the firm is able to do so because of an increased reliance on independent contractors and less reliance on brick-and-mortar facilities.

Finally, there’s a recent new company making inroads in the rarely discussed medical waste disposal industry. Medical waste disposal is a necessary service, and one that hasn’t changed much over the past few decades.

“It was a simple decision. People won’t stop needing medical waste disposal anytime soon, so when we saw the opportunity to offer the same service for a lower price, we jumped on it. We get more business, and our customers pay less,” according to MedPro’s CEO George Shanine. A former 15 year IBM software executive, Shanine also believes that the key to disruption is transparency and simplicity.

Key Takeaways for Competitive Pricing

To recap, if you want to beat your competitors in an oversaturated market, your two main options are to offer something they can’t, or lower your prices (while maintaining the quality of service) until you’re the better choice. The challenge is protecting your profit margins while doing so, but these key strategies can help you:

Make adjustments to your current business model and experiment with lower pricing. If you can offer a service that’s similar to or better than your competitors for a lower price, you’ll dominate the market; it doesn’t matter what industry you’re in.

People want a good deal, and if you can give it to them while maintaining high standards, no one else will be able to keep up with you.

Author Credit: Steve Olenski @steveolenski is a writer who drinks too much coffee and knows a thing or two about marketing.