Assessing the value of your new medical nutrition products
To develop a successful medical nutrition product, nutritional companies must invest substantially in product development. As a nutritional company, you are required to conduct clinical trials and to develop marketing activities. To recoup these investment costs, the price of a medical nutrition product is often high. However, are consumers, i.e. patients, willing to pay a premium for a product that is not covered by health systems and insurers?
Factors that can inhibit a premium price
Asking a premium price for your nutritional product is not always possible. There are several factors potentially preventing consumers from purchasing a new medical nutrition product.
- Other reimbursed options may be available in the indication area in question. Are consumers willing to pay for a more expensive product that is not covered by health systems and insurers?
- If its benefits are not clear compared to healthy foods, the new product may come across as over-priced.
- Some diseases like obesity, diabetes and HIV are most prevalent in lower income groups: people who simply cannot afford more costly medical products.
- If the product should be consumed over a long period of time to be beneficial, the accumulated costs may be more than consumers are able or willing to pay.