PRICING POLICY PROCEDURE

Savtap Investments
33071 Unit G
Makoni
Chitungwiza

POLICY NAME PRICING POLICY POLICY NO. 01

EFFECTIVE DATE 14/01/2019 DATE OF LAST REVISION VERSION NO. 01

ADMINISTRATOR CONTACT
Deogracious Chawira 0783010742
RESPONSIBLE INFORMATION

APPLIES TO Apply group names to define applicable areas of staff.

GROUP 1 Administration GROUP 2 Nursing Staff GROUP 3 Reception

GROUP 4 Pharmacy GROUP 5 GROUP 6

VERSION HISTORY

VERSION APPROVED BY REVISION DATE DESCRIPTION OF CHANGE AUTHOR

APPROVAL AND REVIEW

ADDITIONAL NOTES
SCOPE
This policy applies to all medical services and pharmaceutical drugs offered by Savtap Investments to its valued clients and
patients.

POLICY STATEMENT
The following policy seeks to prevent price disparities of Savtap Investments medical centres services and products, and the other
players in Chitungwiza. The objective of this policy is to charge products and services in a way that greatly enhances sales volume, revenue,
profit levels, and company image. This policy aims to improve the pricing of medical services and drugs by Savtap Investments.:

 Reducing and managing price disparities with other industry players

 Breakdown cost of services and pharmaceutical drugs offered

TERMS AND DEFINITIONS

Define any acronyms, jargon, or terms that might have multiple meanings.

TERM DEFINITION

USD United States Dollar

Disparities Discrepancies, inconsistencies or differences

Inflation Price increases

POLICY SECTIONS

POLICY SECTION ONE: INTRODUCTION

Savtap Investments offers medical services through Makoni and St Mary’s 24hr and pharmaceutical products through its
pharmacies. It is therefore critical to price both the services and products in a way that increases:
 Sales volumes
 Sales revenue
 Market share
 Profitability
 Business image

Pricing is mainly influenced by cost, demand, competition, experience, customer perceptions and profit goals.
POLICY SECTION TWO: PRICING FACTORS

The prices charged for products and services within the Savtap Group will depend on the following:
 Cost of goods from suppliers- the price of any product sold must always be higher than the cost of buying the product
from the supplier. To prevent disparities, a stable currency like the USD must be used as the basis currency for purchase
prices.
 Operating expenses- fixed and variable operating costs must be taken into account when pricing both pharmaceutical
products and medical services.
 Profit goals- clearly defined profit goals must be set as a basis for the pricing of both services and products.
 Competitive pressures- regular market surveys must be conducted to understand and compare competitor’s prices with
the business’s current prices. This may motivate a review of the business prices to align or lower or increase prices than
competitors in order to increase sales volumes and revenue.
 Industry standards- certain products or services may be priced according to standards issued by an authority. The
drawback of this approach is the slow response to rapid inflation.
 Experience- historical data may be used for pricing especially for medical services provided past value is the same as
present value. In the event of volatile markets, prices must be adjusted to a stable currency used as basis, USD.

POLICY SECTION THREE: STRATEGIES

Strategies to improve the pricing of medical services and drugs include:

 Carrying out frequent market surveys to determine competitors pricing policies (under stable economic conditions,
perform surveys on a quarterly basis)
 Charge based on a stable currency like the USD to account for rapid inflation
 Charge items separately to give a breakdown of prices to customers
 Always review operating expenses, costs of goods and set profit goals
 Fostering a culture of continuous improvement

POLICY SECTION FOUR: OUTCOMES

The desired outcomes of this policy:

 Increased satisfaction of patients with the services and pharmaceutical products

 Reduced discrepancies with other market players
 Increased sales volume, revenue and profitability

POLICY SECTION FIVE: KEY PERFORMANCE INDICATORS

The success of this policy may be measured in terms of:

 An increase in the number of patients and drug purchases

 Increase in revenue
 Increase in profits
 Improved company image

POLICY SECTION SIX: REVIEW PROGRAM

This policy should be reviewed annually. The review process should include an examination of the performance indicators,
consultation with internal staff.
EXCEPTIONS

RELATED POLICIES AND OTHER REFERENCES

ROLES AND RESPONSIBILITIES

ROLE RESPONSIBILITY

Management Oversight

Nursing staff Implementation

Reception Implementation

Pharmacy Implementation