While looking for something else, I stumbled on this report from September (apologies if it’s already known).
Sonova are apparently open to a return to a relationship with Costco, probably due to a sizeable dent in growth and profits… Just not with Phonak.
Yep it was stated in one of their last financial reports, but it doesn’t matter if they go with Unitron or Hansaton, it’ll still be a Phonak, it’ll be a great move for everyone.
Yep it was stated in one of their last financial reports, but it doesn’t matter if they go with Unitron or Hansaton, it’ll still be a Phonak.
This would be an excellent move. It would give me an affordable upgrade path that works with the Roger devices I have.
I think someone called our attention to this a ways back. It’s will be good news for those who like the Sonova band.
I don’t know what caused Sonova to pull out, but not having one of their bands in the second largest hearing aid provider/seller in the USA was a major mistake.
Thanks for that @garethjwells as might also work well for me. I trialed Costco Philips Hearlink 9040 but overall not that pleased. I reverted to Costco KS10s specifically for ease of use of Roger ON which is vastly superior to Philips external mic but of course much more expensive even via the sued route I take. I am unfamiliar with Unitron, do you know if newer models typically come with Roger Direct built into the aid as is true of the KS10s?
Unitron is the same as Phonak models, different names same past bin, Roger would work with them, this from Unitron.
“Wireless hearing aids on Discover Next and newer platforms offer RogerDirect which enables usage of Roger Microphones without the need for any additional hardware after purchase and installation of the receivers”
if new bluetooth is introduced in hearing aids, there is a possibility that these roger accessories will not work. Phonak will probably introduce a new line of rogers to get people to buy their products again. The next devices could be the new bluetooth Low energy and maybe with auracast support. The new bluetooth technology usually means that the old bluetooth classic will not be supported.
Roger is fm tho, so in most cases bluetooth won’t be a problem.
From Phonak
“Roger is a digital wireless technology standard, that FM is a method of radio broadcasting using frequency modulation (FM) technology”
This story was brought up a couple of months ago. Sonova volumes were affected by the split and Sonova is publicly stating future interest.
But what about Costco’s interest? The KS branded HA volumes must have been huge - if the world’s largest HA manufacturer’s bottom line was dented, that’s proof positive. But unlike Sonova, Costco had options - Jabra, Philips, Rexton.
How has it gone for Costco? Have Costco HA volumes/profits gone down, or has Costco simply substituted the other brands and continued to roll? And what caused the split in the first place?
We on the outside don’t have answers to these questions. From the outside looking in we continue to see great HA prices albeit it not quite as good as where a “KS11” would likely be today, customers who are satisfied with the products (eg. I’ll take my Philips 9040 over my KS10 in a heartbeat and I’m not the only one), and no perceptible improvement in wait time for appointments. That’s about all that we can see.
Costco is all about great products at fantastic prices. If HA business is going well for them - and from external appearances it seems to be - the only clear motivation I can see for adding another line, under a house brand or a brand like Unitron, would be unique features (not present in Unitron) or fantastic prices.
If Sonova offers the latter so that Costco can go to market with breakthrough pricing on a quality product, and there is no long term relationship damage over the disruption caused by the split, I can see Costco loving it - they love nothing more than stunning their members with great deals on great products and services, this and respect for their members and employees are what have made the company unique. Otherwise, if customers are still queuing for appointments, it’s sorta hard to see why they would do it.
Total speculation on my part…
Costco model is low margin/high volume/low overhead. And driving the other guys out with low, low prices. Amazon LOST money big time for decades while establishing itself. (and thrived on Gv’t provided tax breaks that independents didn’t share.) Independent retailers can’t do that–no deep pocket investors.
Issues eventually arise with monopoly practices due to lack of competition. As one analogy, The U.S has anti-dumping laws for foreign goods that sell below cost in order to kill competition.
I’m not saying that Costco hearing aids are doing this!!! I’d be shot. But I wonder if the hearing aid department turns a profit. Still, I’d love to see Costco force down prices elsewhere. It’s just, I don’t see independents getting rich by gouging customers. Somehow the picture is akew.
You seem to be inferring, obliquely, that Costco may be doing something like Amazon. What logical reason would there otherwise be?
I’ll note that while Amazon’s pricing practices have been predatory over the years, leading to fast top line growth, minimal bottom line results, and a lot of bricks and mortar businesses biting the dust, Costco is and has always been highly profitable. There is zero evidence that they do what they do in order to drive others out of the market. They are successful because they do things profitably, and better. They have built a successful business by doing warehouse club things better than anybody else, which is to say by providing great deals for their members.
Costco, like all going business operations, is always seeking new areas of opportunity. Obviously Costco saw the predatory pricing practices of many HA indies(!) (as has the US government seen the exact same thing and recently changed the rules), realized that there was an opportunity for win-win with its members, and took action. So, your sense of who are the predator and the prey may be confused.
This doesn’t seem to be a tight thread, so I’ll ramble.
I have no idea what or if Costco and Sonova will work out a deal and I don’t think anybody posting has any inside knowledge. If they do work something out, I’d agree it’s unlikely to be Phonak brand, Hansaton or Unitron seem like reasonable possibilities.
Regarding trends in hearing aid sales models: I look to other industries to see what has been happening. When I grew up, there were lots of independent pharmacies and optometrists. Now an independent pharmacy is a rarety and private optometrists are much less common. They just can’t compete with larger businesses that buy in volume and can get much lower prices. The same is happening to audiologists. I don’t think the audiologists or Costco are evil–I just think they’re caught up in societal trends.
Yes, Costco as a whole makes a profit. And for all I know, so does there HA division. But large corps will sometimes offer 'loss leaders"–items that break even or lose a bit for the business in order to attract customers for other items. Again, Costcos Ha division may well be profitable! It would be interesting to hear what their margin is, given teh low prices.
Sonova did not pull out, they were thrown out.
I was under the impression that only Sonova and Costco management knows the reason. So where did you get your information?
I believe it is because of the tremendous unreliability complaints against the KS 10 . This explanation by Dr Cliff pretty well sums it up.
Hearing Aids have always been somewhat of an anomaly in the healthcare field. What other product is not optional and expensive and not covered by health insurance? When I used to go to private audiology clinics the pricing structure was totally opaque for consumers. It was a shock to me when I saw my first Costco HA department with the available brands and prices right there in the open, and they were a third of what I was used to paying. Add in that the staff are not paid on commission and don’t push expensive products on you and it’s no wonder they are so popular.
Cliff Olson (and I’m sure other private audiologists) will say that their expertise justifies their inflated prices, but when I challenged him to prove it all he could offer was anecdotes. If private clinics want to continue using the 20th century model in these inflationary times they’ll need to conduct research to prove their added value.
I have to take anything this guy says with a grain of salt. I don’t think he has any inside information.
If he is correct and Sonova was selling Costco garbage, then Sonova was stupid. Costco is the number two provider of hearing aids in the USA after the VA.