This article aims to provoke thought on a topic that has become increasingly relevant in many countries where price pressure is prevalent. In our spine implant sector, negotiations have traditionally been focused solely on the product. However, upon deeper reflection, it becomes evident that the service accompanying such a product is equally, if not more, crucial in the creation and maintenance of strong customer relationships. This aspect often goes unnoticed during business negotiations, where the primary focus is on the product offered, relegating service to a secondary role. With the advent of robotics and technology, this topic is gaining even more relevance.
Is this a sustainable practice in the long run?
Depending on the country and their prices, one thing is clear: In spine surgery, service is fundamental and indispensable. Companies offer spine implants and systems but aim to establish customer’s long-term relationships. This objective is attained through product quality service and personalized attention. While the implants may be of high quality, not all providers offer the same level of service. If costs continue to rise and hospitals adjust prices, things will have to change as it will not be sustainable.
But what exactly is service in the spine?
Basically, it involves filling the gaps that hospitals have to ensure everything runs smoothly. In other words, it’s a service not only for the hospital but also for the surgeon, the nursing staff, and above all, for the patient. And many may wonder, what could go wrong? Many things. Instruments may be lost in the hospital and not reach sterilization, not everything may have arrived, etc. That is to say, a good vendor has everything under control, and if something happens, they act to resolve it on the fly and ensure everything is successful. That’s why it’s often said to be part of the hospital’s team. Surgeons or nursing staff trust them and know that everything will go smoothly.For this reason, spine vendors are a key component and must be highly skilled. They are tasked with selling the implants, fostering long-lasting relationships, and providing a service that does not falter.
So why is service taken for granted in many transactions of this kind?
The answer could lie in a combination of historical and economic factors. In the past, profit margins were wide enough to include a wide range of additional services in the final product price. However, with market evolution and increased competition, margins have tightened, leading to constant price pressure. In this scenario, the costs associated with providing additional services have increased, prompting a fundamental reconsideration of how these services are structured and valued.
It is crucial for companies to understand the importance of service and to integrate it properly into their pricing strategies. It involves recognizing the costs associated with providing services but appreciating the positive impact that excellent service can have on customer loyalty and ultimately long-term profitability. It’s not easy, especially in this highly competitive market. But in any case, the first step is to internalize this concept of the added value of service.
Secondly, it’s essential to emphasize to customers the service provided. It’s important to differentiate between product and service. When negotiations focus solely on the product and obtaining the best price, the value of the service must be taken into consideration and emphasized.
As mentioned at the beginning of the article, these are reflections that make more or less sense depending on the country and the characteristics of its spine market. However, it’s crucial to emphasize that whether it pertains to product negotiations alone or involves the integration of technology, service should never be taken for granted. It undoubtedly makes a difference, and that has a price and, above all, a high value.
What is your opinion? Comments are welcome!