Most doctors find it difficult to do differential pricing for their services. Look at Uber. It uses a sophisticated software to price the ride at a different level for different users. It pays the driver differently for different rides (well this I am not so sure, but its a wild guess).

When you run a hospital it is possible to bundle some products and give people a discount. Is it possible to do so for a small doctor in his private practice?

  1. Differentiate your Service: Differentiation involves offering unique versions of the same base product at varying prices. It is not price discrimination — you’re not charging different prices for the exact same product — make the service look very different. One of the ways doctors can do it is to have 2 clinics. One in a higher end Suburb (say South Mumbai or Santacruz) and the other in Kanjurmarg or Kalina! Obviously both locations should look different, feel different, and have a better touch and feel. Uniform for employees, ambience…etc. should be different.
  2. Mark up prices more regularly: Doctors do not mark up prices regularly, so when they do it say once in 5 years..it fires back. Raise prices regularly, and give discounts to certain people. This is better than charging a low flat fee to everybody. So choose to give discounts to army people, school teachers, policemen – this will mean that nobody can crib to you about being expensive. Say this is your CSR and you are doing it for society. It could also mean you are addressing a niche market – and you may find your practice full of teachers, policemen, defense personnel….and will dramatically increase your specialized practice. Niche helps. Even for docs!
  3. Try pricing differently at different times. To encourage housewives you could price dental treatment in the afternoon. If you are running a dental practice with a few junior dentists try 8am to 10pm kinda timings. Today most dentists are available only between 11am to 8pm. Try grabbing market share beyond these unstated hours. Maybe at a premium?

Whether you are seeing it as a smart business or as highway robbery Uber is getting away with differential pricing.

  1. Ask any doctor to prominently publish their fee structure at their clinic and they will squirm in their seats!! Where we expect every packaged item from Glucose Biscuits to Airplane tickets to publicly publish their prices/MRPs BEFORE we avail the service/goods, we have no such expectation from Doctors and Hospitals, which is very weird. I’m not against Doctor’s earning a fair livelihood for their knowledge and expertise, but saying its ok to charge a crorepati 99 lakhs for a life saving operation while charging 99,000 for the same from a supposed poor guy is not the solution either.

  2. Tell the Docs that AI is coming and fast!
    The loot that they were indulging in all this while will be a thing of past!
    Rood riddance, when it actually happens.

  3. Speaking of RE, why would someone sell a property at lesser than the market value and invest the amt in MF (long term) than holding it in the hope of getting better price later..

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