Disruptive Pricing Goes a Long Way

For the last two days, I have been reviewing an innovative health-care company: Best Doctors. Today I want to go over how this $100M global provider prices itself successfully.

Although Best Doctors does not sell to customers based on price–clients offer Best Doctors’ service to their employees because they want to offer better health services–Best Doctors’ total cost would barely blip on a company’s radar screen. Companies pay just a few dollars per employee per month. When compared to their overall health-care spending, this cost is minor. When incorporating the savings that come from making more accurate diagnoses, the cost could become negative.

This makes me think of Redbox, the McDonald’s innovation, now owned by an independent company, that allows grocery shoppers to rent DVDs from kiosks at their supermarkets. By pricing the DVDs at just $1 per night, RedBox creates the perception of being radically less costly than Blockbuster, Netflix, or cable video on demand. Xerox won the early photocopy war by similarly offering disruptive pricing.

Ask yourself, how can I radically reduce the perceived price of our product relative to our competition?

To learn more success secrets from Best Doctors’ President Evan Falchuk, register today for a free webinar on Monday, January 24, 2011 at 12 p.m. EST (9 a.m. PST)