Illustrative case study · Healthcare & Life Sciences
Labs shrug off price rises, and leave after a missed date.
Core facility directors and lab heads decide where sequencing work goes. A sequencing services provider planned to cut its list prices to win that work from the two largest vendors, but first wanted to know what makes a lab move its work. The study interviewed 180 of these leaders and returned the report in 14 days.
Illustrative example. The company, scenario, and all figures are fictional. They show UserCue’s method and deliverable format. They do not come from any client study.
The engagement
Illustrative scenariodays, with the report, the data file and a live readout.
Core facility and lab leaders who choose a sequencing vendor.
100 academic and 80 industry lab leaders.
A Vendor A to D funnel, then the cut that would move work, in 2% steps.
A sequencing services provider
Whether to cut list prices to win share
Commercial plan, before a price change
AI-moderated interviews with a four-vendor funnel and a price ladder
Funnel stages, switching triggers, the price cut needed to switch
Academic core facilities and industry labs that outsource sequencing
Headline figures
of labs use Vendor C as their main sequencing vendor, behind Vendors A and B
would move their work after a missed delivery date; 21% after a price rise
median cut that would move a lab whose vendor missed a date, against 24% for the rest
The question
Will a lower price pull labs from their vendor?
Vendor C, a mid-sized sequencing services provider, saw its share stall behind two larger vendors and drafted a cut to its list prices. The commercial team needed evidence from the leaders who choose where sequencing work goes, academic and industry, before it gave up margin.
Which sequencing vendors do labs know, consider and choose?
What makes a lab move its work to another vendor?
What price cut would it take to win a lab’s main work?
What we did
How the study ran, start to finish.
- 1Kickoff
A drafted price cut, tested first.
Will a lower price pull labs from the two biggest vendors, or does something else keep them there? The kickoff turned it into three questions: which vendors labs choose, what makes a lab move its work, and what price cut would win it.
- 2Design
A four-vendor funnel, two lab types.
The screener took leaders who choose their lab’s sequencing vendor and sent work out last year: 100 academic, 80 industry. The researcher built a funnel from awareness to preference for Vendors A to D, a price ladder for switching and a question on missed dates.
- 3Fielding
180 lab buyers, in their own words.
Interviews ran by voice or text, quant and qual in one conversation, for a median 28 minutes; switchers retold the order that made them leave. The researcher read all 201 and removed 21, mostly in-house-only labs and staff who never pick the vendor, leaving 180.
- 4Analysis
Missed dates make labs cheap to win.
The researcher lined up the price ladder against missed delivery dates in the past year. Labs whose vendor had missed one, 42% of the sample, would switch for a median 8% cut; the rest held out for 24%.
- 5Readout
After a missed date, 8% wins the lab.
Sharing the 31-page report live, the researcher took the commercial team through funnels and price ladders by segment, with the full data file. Vendor C shelved its list-price cut for a turnaround guarantee and 8% off a first order after a missed date.
What we found
Four findings from the report.
Vendor C is known but rarely chosen: 78% of labs know it and 9% use it as their main vendor. Missed delivery dates move work far more often than price rises do. And a lab whose vendor missed a date in the past year is cheap to win: a median 8% cut would move it, against 24% for labs whose vendor kept its dates.
Labs know Vendor C, and few make it their main vendor.
78% of labs know Vendor C and 47% would consider it, yet 9% use it as their main vendor. Vendor C keeps 31% of the labs that try it; Vendor A keeps 67%.
Vendor C funnel · n = 180A missed date moves work more often than a price rise.
63% would move their main work after a missed delivery date and 42% after a data quality problem. A price rise would move 21%. Of the 64 labs that switched in the past two years, 58% left after a late order.
What would make a lab move its main work · multi-select · n = 18042% had a missed date, industry labs most.
42% of labs say their main vendor missed a promised delivery date in the past year: 56% of industry labs and 31% of academic ones. For 61% of them, the late result held up a grant or project milestone.
Vendor missed a promised date in the past year · n = 180After a missed date, labs move for an 8% cut.
Labs whose vendor missed a date in the past year, 42% of the sample, would move their main work for a median 8% price cut. The rest held out for a median 24%.
“I will take a sales call about a lower price. A late run in the middle of a grant deadline is what gets a vendor replaced.”Core facility director · Illustrative quote
Illustrative quotes
Three themes behind the numbers.
“We moved our whole program after two late runs in one quarter. Nobody called to warn us, and that was the part I could not forgive.”
“Every vendor discounts at renewal. A few points off does not justify retraining my staff on a new submission portal.”
“We send a pilot batch to a new vendor every year. Whether they get the main work depends on that batch showing up when they said it would.”
What the sequencing provider did
Three moves made with the report.
Guaranteed its dates and kept its prices.
Vendor C kept its prices and launched a guaranteed delivery date, with 8% off a first order for labs whose vendor had missed one.
Aimed outreach at labs after a missed date.
Sales now tracks which labs report a late run, starting with industry labs, where 56% had a missed date in the past year.
Rebuilt the first order around the trial batch.
Trial batches now get live order tracking and a call before any delay, to lift the 31% of trying labs that make Vendor C their main vendor.
Illustrative example. The company, scenario, and all figures are fictional. They show UserCue’s method and deliverable format. They do not come from any client study.
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