You have more than five customers
We see a lot of early product development plans for medical devices, and regularly advise people that they need to make sure they understand all five of their customers in every product sale. Here I update that list to make it current.
The patient is the ultimate customer, of course, especially for OTC, that’s why you do all the research and verification and validation.
The physician, however, selects your product. That’s what most people focus on, selling the prescriber.
Obviously the health care location is a customer, be it an office (if there are any independent practices left in the USA), most likely though this is a hospital or care chain - a big company. You have to make your economics work for them!
Don’t forget the FDA - you have to sell them to have a chance to sell to anyone else.
And, of course, there is the payer. Medicare, and private insurance companies. Your economics have to work for them, too. Admittedly for a blockbuster product you can SET price as you wish, but normally you have to fit into the existing code and compensation systems. This is the fifth customer on the checklist we’ve used for thirty years. For USA, though, consolidation means you have even harder sells to do.
There aren’t very many distributors left, it’s all been rolled up in every specialty and region. Do you have friends there, yet? Their economic demands are in contradiction to the ones above.
And lastly, there are the PBMs, which are inserting themselves into the device space now that they’ve captured the full sweep of pharmaceuticals.
Between the general slump in early phase VC, and the current (circa 2025) administration’s stated intention to destroy science and active disruption of the grant processes, it’s tough. Your business plans need to consider in depth all seven of your customers. Good luck!