The Real Cost of Hearing Aids?

Hearing Aids
#20

Yes, I agree TRANSPARENCY is sorely missing. There’s no sign outside the audi’s clinic saying what it costs. You have to poke and prod to get information. Like today I finally got the price for coming in to discuss with the audi which hearing aids will benefit me the most. It’s $75, which seems to me if you are going to order hearing aids that $75 ought to be included in the hearing aid purchase. Because after all, your customers can’t see what’s inside your store, they have to come inside to check the merchandise. And if you are charging them $75 just to get in the door that just doesn’t seem right to me.

Some customers might decide to let their feet do the voting and go find another audiologist not so secretive.

#21

To follow your reasoning, why do I have to pay the audiologist to come to her office for her opinion about which hearing aids I’m going to purchase from her. Why am I charged $75 to get information and advice if she’s charging me for the hearing aids and the advice both. The cost should be in the hearing aid purchase.

#22

75 dollars applied to the purchase price if you buy…if not…75 dollars for advice that you ignored…

#23

Interesting. My audi charges me nothing when I come in looking to buy new hearing aids. Trials are free too. Actually, every adjustment that’s been made since purchase, as well as cleanings, have been free.

#24

There are bundled and unbundled models for hearing aid and services pricing. Want lots of free stuff? The initial price will be very high. Want low prices when you don’t use services much? Decoupling service charges from HA purchase will help. That might be a good thing to figure out first, is a practice decoupled or not?

WH

1 Like
#25

The aids themselves don’t cost much if you buy in volume.

I put links to the costs of the VA and the State of Maine in another post.

Small shops will pay a lot more per aid. I don’t know how much though. Maybe someone else can point to numbers for the shop that deals in dozens per month instead of thousands.

WH

1 Like
#26

It will vary place to place, but on premium devices from certain manufacturers with zero discounts, I’ve seen it at ~3k CND for one, which is a dramatic shock next to the pricing that the VA or Costco get.

2 Likes
#27

You’re saying $3k CND for one is wholesale price?

Wow

WH

#28

There appears to be a very large discrepancy between, who pays what for wholesale aids WH… It would seem the VA gets around a 70% discount, from certain manufacturers, Costco will be somewhere north of 80%, and the NHS, close to 90% discount… I cannot nowadays vouch for the NHS prices, but a few years back, I managed to get a copy of their catalog price, and on average they where paying around a tenth of the retail UK High Street price… Which begs the question; Presumably, the hearing aid manufacturers are still making a reasonable profit with the discounts they offer to the likes of Costco, VA & The NHS, they surely would not be selling to their main bulk buyers at a loss, that wouldn’t be sustainable… So they have to be, IMO, artificially inflating the wholesale price to the “Independent A.uD’s & Dispensaries”, and ripping off Joe Public in the process… Or to be more precise, Ripping off folks, whom have a recognized disability… Their lack of morality is cynically clear…

3 Likes
#29

And the drug companies, gas companies, etc…… the list goes on quite a bit.

2 Likes
#30

Yeah Agreed @janofh… My point is, is it morally except-able behavior to “ Target” folks with a disability to make obscene profiteering… As William Shakespeare said, “There’s the rub”…

1 Like
#31

Or there are business aspects of managing smaller accounts which have higher costs we don’t know about?

Do the big accounts have to eat expense of rejected trials? Or warranty expenses etc? I have to wonder. Are there commissions when selling to smaller accounts? Or expenses related to getting practices to sell your aids? (Wine/dine etc).

If the wholesale price in Canada is $3k, what is the retail? Doesn’t seem like there can be much margin to sustain a business unless you’re selling for like $10k a pair. Rent, equipment, payroll, insurance, taxes, etc. How can you afford to provide ongoing service for 3 years or whatever unless you jack prices way higher?

WH

3 Likes
#32

There is no doubt in my mind WH… The Vast Majority of the Independent, A.uD’s & Dispensers will struggle to eek out a profit, especially with the overheads & returns you mention, it’s not a level playing field, the Independents have to cow-tow to the manufacturers, like the pied piper, they dance to their tune… Only the manufacturers IMO, are guaranteed a profit, and a fairly significant profit at that…

#33

I’ve seen pricing up at 10k, but that’s the top end. Practically, there are buying groups and other ways independents try to get their prices down, but likely not down to even come close to those other bodies that get big bulk pricing.

1 Like
#34

It’s common practice downunder for 8k a pair, only Costco sells at a reasonable price (for whatever that may mean to people)

1 Like
#35

According to Demant 2021 annual report - Group gross margin is about 75% & above

1 Like
#36

Thank you @dankailo… I guess, that report will paint an alternative picture… It would take a little studying… Although 75% isn’t IMO, overly excessive, Much obliged…

1 Like
#37

Except Costco. They keep their prices low but bundle in services, domes, & filters for a half to a third of the cost elsewhere.

#38

From what I’ve heard, Costco sales targets are about 4x higher than you might expect in a smaller shop, so there’s certainly a volume component. And yet, it is not my experience that patients particularly feel like they are being churned through. The services they offer are certainly a bit more streamlined or limited. They are very different in our two countries, but where I am they are struggling to keep their clinicians despite very healthy reimbursement and unmatchable benefits.

#39

Personally I found Costco to be near the top end of my (poor) local choices. That meant the cost savings and flexibility of locations played a role in my choice. I hope I now have a better choice but further away.

Failing that I may return to Costco for my next aids.