Growing Market Share Without Cutting Price
What’s the right strategy when you’re a market leader with a high-value offering, but new players are undercutting you on price? How can you continue to grow market share when gross margin is being chipped away? Read how a health care company solved the problem using a new negotiating model and sales skills developed by our Thought Leader Partner, Accordence, Inc. Sales team members rescued a potential $110,000+ gross margin loss right away, and the company is on track to continue market share growth without costly price concessions.
A leading women’s health care company approached Accordence when it had trouble growing its share of the market without cutting the price at which it sold its products. This billion-dollar firm grew to success a decade ago when it developed a unique screening test and related equipment that it sold to human health laboratories. These tests and equipment, which allowed labs to more effectively and efficiently detect disease, gave the firm a solid advantage in the human health market in this disease area.
As another company entered this marketplace, many buyers chose a supplier based on price. The firm, which had a strong belief in the additional value of its product, now was surrounded by a few competitors selling solely on price. Buyers began moving their business away from the firm, oftentimes moving to the new competitor for price reasons and sometimes because they did not want to work with a company that was “dictating the market”. The company needed to find a way to combat gross margin erosion at a time when they were looking to continue to grow market share.
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