We’ll never have a full picture of the the industry. But there have been some pretty good guesstimates. With using buying groups to lower cost it looks like the premium aid runs from 100% to 150% markup – best case. The gotcha is their volume. This can make a simple clinic vary from failing to nicely profitable. That’s the business model.
Costco has lower cost and reflect their pricing in savings to the consumer. Talking to their people I have found that they regularly provide added training to their team. Evidently, that is to try to have a minimal standard. As we recognize they have good and not so – consistent with the industry as a whole.
Many clinics have a limited clientele. Cosotco seems much busier. Why? Well, price certainly is a factor. But they also have a large walk-by group as they have traffic equal to a good super market. They also have an assistant that does not fit but can answer the questions of passing shoppers. Costco enjoy customer loyalty more than almost any other retail operator. It natural for many with loss to inquire. There fitting rooms at mine are always full.
When I turned 65, I started getting mail which seems the typical promotion vehicle by clinics. They typically offer some great deal. They read like an infomercial. I didn’t trust a word. I visited a clinic operator. They tested me and fitted me with aids and quoted $3200. That was it. No real discussion of my loss or even info about the features. I left dissatisfied.
Look at the person who has aids and their clinic closes or they move. Visit the local clinic and you get the bum’s rush. “We only service what we sell.” is the typical response. Here is a future customer and they drive them away. This is even though they could at least cover part of their cost by selling them their service for a reduced but still as somewhat profitable transaction.
There is no other industry that I am aware of has such a slip-shod business plan.