Once your medical device is ready to hit the market, you need to find a manufacturer so you can have your device produced, sterilized, and packaged for shipment.
When you’re looking to partner with a manufacturer, you’ll want to move quickly, but you should also be informed before you make a decision and do your research ahead of time. Before you sign for the deal, here’s what you need to know about negotiating with medical device manufacturers.
Low Pricing Isn’t Always Ideal
When negotiating with a medical device manufacturer, no doubt the first thing you’re concerned about is pricing. Pricing is a crucial component of contract negotiations, and failure to reach an agreement can quickly forestall what would have been a great partnership. The main reason behind pricing disagreements is that it’s tempting to go for the lowest production cost. However, you could be shooting yourself in the foot with regard to the quality of your medical device. That’s because it’s impossible for a manufacturer to develop your medical device for a dirt-cheap price without a major sacrifice on quality.
We recommend that you familiarize yourself with industry rates and make sure you’re dealing with a reputable manufacturer that has transparent and justifiable pricing. Remember, it never hurts to negotiate the pricing, but you must be willing to work within a reasonable range.
Standards Matter for Service Quality and Delivery Time
It’s essential to get assurance from the manufacturer that they’ll provide the best service quality and deliver the medical device within your specified time frame. This is crucial if you plan to launch your medical device successfully. After all, the last thing you need to deal with during the pre-launch phase is a high defect rate or an extended delivery time. Therefore, if you have already created your product launch plan, the manufacturer should also be aware of the standards you have set within that plan.
The manufacturer must agree to uphold these standards, and this should clearly be stated in the terms and conditions of your contract. That means you can hold the manufacturer liable if they fail to meet the expected quality of service or if they are not punctual. Overall, setting standards for service quality and delivery time in the contract guidelines gives you more peace of mind because you know the manufacturer will be motivated to honor their agreement and maintain their reputation.
Clear Communication Sets The Tone for a Great Partnership
It’s important to maintain clear communication lines with your medical device manufacturer during the negotiating phase. This helps prevent misunderstandings and production problems that could affect both parties down the line.
Communicating clearly also influences your working relationship with your manufacturer positively. It helps you understand how the manufacturer plans to approach your partnership and allows you to adjust the contract’s terms and conditions to suit their culture.
The Contract Should Be As Detailed As Possible
A successful negotiation is never complete without comprehensive project and product details in the contract terms. This begins with you understanding what you need from your medical device manufacturer, during the entire project, from start to finish.
For instance, besides outlining the timeline and the expected quality of service, you should also clearly state your business partner’s role in the project. That way, there will be no second-guessing between your internal team and your manufacturer’s team. If there are any other relevant details, be sure to incorporate them into the contract to guarantee a smoother project.
A Successful Device Starts Here
Introducing a next-generation medical device not only changes lives and makes the world a better place, but it can also be exceptionally profitable. However, this can only be the case if you negotiate a beneficial deal. Ultimately, you want a clearly outlined and thoroughly detailed contract that’s acceptable to both you and the manufacturer for best results.
Need some help navigating a successful medical device launch? Get in touch with our team! With more than 25 years of experience, our team will work as your partner from beginning to end to ensure your device’s successful.