Grabbing cookies while the lid is off the jar

Recently, I’ve noticed that two seemingly unrelated stories… that are very much alike.

First, much coverage has been given to the way some drug makers seem to be hiking prices now, fearing they won’t be able to later, if current healthcare reform efforts indeed become law. (See a version of the story that appeared in Raleigh’s News & Observer online.)

Second, a number of banks are hurrying to adjust the terms and rates for credit cards, as a seemingly pre-emptive move before new rules are put into place for the industry. (See a version of the story that appeared in the New York Times.)

Implications: When a company rushes to alter prices and terms—which might be prohibited or more difficult later—is essentially a way of circumventing anticipated regulation. It will be interesting to see whether and how consumers react. Will they see these price hikes as evidence that government should never get involved with the private sector? Or will they perceive these moves as evidence that the pricing strategies of these industries have been abusive, and their recent behaviors justify the anticipated new regulations?

What if you’re a pharmaceutical or credit card company that has not raised prices or changed terms? Will your organization continue to be clumped-in with the rest of the “bad guy” industry? Or is this an opportunity for your company to ride in with a white hat… ready to rescue the consumer?

What if you’re a pharmacy retailer—a drug store—who must break the news about price hikes to the consumer, over which you had no control? How will you explain the changes to customers, in a way that keeps you from bearing the brunt of their frustration?

Often, when circumstances that might change the status quo can be anticipated by the players involved, those players move to protect their status, before anyone changes their quo. Moves like this can spark some interesting consumer responses… so stay tuned.

Mike Anderson