Situation
McKesson operates in a competitive industry that continues to evolve across both the medical supply and practitioner markets, as well as shifting end-consumer demographics and needs. Their leadership team wanted an objective analysis of the fair market value for the supplier marketing services they offered, accounting for all services, including new services planned to launch in the near future.
The medical devices and supplies distributor sought to update its pricing schema for Supplier Marketing Services using a data- and insights-driven model. They required a methodology to regularly refresh pricing based on best practices, ensuring competitive positioning, maximizing revenue potential, and accurately reflecting the value of evolving service offerings.
Our Solution
Thought Logic focused on measurable results through an initial Analytical Plan clearly defining data needs for successful project completion, a Fair Market Value report detailing the dollar value of each service provided by McKesson, and finally an updated Pricing Schema with detailed pricing for each service, as well as a methodology to update each price going forward.
Our solution included developing a Fair Market Value report demonstrating the value derived from McKesson’s marketing services, updating the Pricing Schema to include recommended list prices for all services offered, driving a projected +29.4% increase in Supplier Marketing Revenues, and providing insights-driven support positions to aid go-to-market with the new pricing schema. We blended multiple internal and external sources to understand current pricing and market value, distilled large datasets to demonstrate the outsized value of ancillary offerings relative to listed prices, and delivered in-depth reporting on service value, followed by updated price lists and suggested improvements to the go-to-market strategy.
Stakeholders
Our Clients
Our Solution Team
Achievements
Thought Logic delivered a comprehensive, data-driven pricing strategy that projected Supplier Marketing Revenue increases while establishing a sustainable framework for ongoing pricing optimization. Our objective market analysis and updated pricing schema positioned McKesson to maximize revenue potential while accurately reflecting the competitive value of their evolving service offerings.
