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Healthcare Glossary
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Umbrella pricing
A system of pricing mainly found in markets with few sellers where the largest firms keep prices high, allowing room for smaller companies with high costs to operate beneath them.
Umbrella Pricing is also used to deter advanced technology by potential competitors. As a result, the rival company enters the market with an less advanced technology creating little threat to the established firm. Mutual benefit is generally gained with the umbrella pricing method.
See also:
Market segmentation
Market leader
Related terms
Loss leader, Transfer price, Drug usage/utilisation review (DUR), Formulary, Investigational new drug (IND), Compassionate use, Leader pricing, Reimbursement, Drug tariff, Phase IV trials, Bias, Cost–benefit analysis, Cost-minimisation analysis (CMA), Return on investment (ROI)/Return on capital employed (ROCE), List price,
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