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Let me first say that I did not choose 3 ? instead of the usual 3 to be different or clever… I opted for the fraction because I can’t decide whether my ? is really a part of

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

one of the other three, or deserves is own number, so I chickened out and compromised. Judge for yourself…

I won’t delve into these in great detail for two reasons… First

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

f all, they are easy-to-grasp concepts, even for novices. Secondly, you’ll find these discussed ad infinitum in countless business textbooks and marketing websites. You shou

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

ld be ever mindful of them, however, as you develop your plan.

1. Getting New Customers: The reasons why businesses try to acquire new customers is obvious so I won’t insul

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

you with further explanation. Still I will reiterate that the vast majority of America’s small businesses erroneously devote most of their time, money and energy here, and

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

pay little attention to the other 2 ?!

2. Increasing the Average Transaction ($) Amount: Simply put, if your average transaction amount (one sale) is $10.00 you should be l

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

oking for ways to increase it. Do the math and add a dollar or two to every sale and see how much that adds to your bottom line in one year. For example, offer your customer

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

s complimentary supplements (add-ons) to your products…

3. Increasing the Average Number of Transactions per Customer: Let’s say your average customer purchases "something"

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

from you twice a month… Now assume that you can provide them with services (e.g. free delivery), add-ons (expanded product line), up-sells, etc. that make them purchase more

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

often… Again, do the math and you’ll be amazed at how quickly the numbers raise.

3.5. Decreasing Customer Churn: Okay, here’s where I differ with my colleagues… I think th

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

s one is related to number 3, but not the same. Simply put, churn refers to the number of customers who take their business elsewhere or leave for other reasons.

If your av

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

erage customer remains your customer for six months, think of how your profits would rise if you kept them longer! This is where it really starts to get fun. Here’s illustra

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

ion of how you can put numbers 2, 3, and 3.5 ONLY to work…

Example Assumptions:

1. I am a widget retailer

2. I have just finished a widely successful customer acquisition

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

campaign and now have 300 new customers

3. I’ve done my research and, on average, each of my customers:

• Spends $10/sale

• Purchases twice per month

• Stays with my co

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

pany 6 months

4. Given this scenario, my 300 new customers will purchase $36,000 worth of widgets during their ‘lifetime’ with my company…

300 customers x $10/sale x 2 tim

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

es/month x 6 months = $36,000**

Now I’ll keep the same formula but change one, or more, of the numbers with the amount of customers remaining constant.

1. 300 customers x

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

13/sale x 2 times/month x 6 months = $46,800 (23% increase)

2. 300 customers x $10/sale x 3 times/month x 6 months = $54,000 (34% increase)

3. 300 customers x $10/sale x 2

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

times/month x 8 months = $48,000 (25% increase)

4. 300 customers x $13/sale x 3 times/month x 8 months = $96,000 (267% increase)

** Remember, this is gross, (sale price l

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

ss materials and labor) not net profit.

This is a very simple, but powerful, model. It clearly illustrates how important it is to find ways to grow your business geometrica

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

lly with the customers you already have. Even better, it is far less costly, and often more effective to implement these programs than ones designed to acquire new customers

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

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There is probably no better business model that has ever been created in the history of human commerce than the franchising model. The franchising model has been working well for governments, religious organizations, service clubs, brotherhoods and businesses for hundreds of years. The power of franchising is alive and well along with all of its hybrid models

Always test your newly promoted subordinates. Here are a few ideas for ensuring those test provide uselful results.

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