This is interesting. On the face of it Resmed are without doubt going to royally 'p' off an active & vocal community. To add to that they will 'p' off a significant number of on-line businesses who in reality are a sales outlet segment that surely can make a difference to Resmed's bottom line.
I can only guess that these are some of their motives ...
- as already suggested, adopting a market protecting approach like Apple has done with their iPod. That was a very good point (as made above).
Steve Jobs when he got back in control of Apple, killed all plans and activities that would have allowed Apple's OS to be run on clone boxes. Some of us at the time thought he was going to alienate the wider Apple community but time has proven that what he did has worked.
- I tend to think a company is only likely to be doing this clampdown on Internet sales if they believe they have new unique product(s) that will give them a decisive lead are paving the way to protect the DME community that will be their primary sales channels in opposition to 'discount' on-line outlets. Perhaps one way to explain - "DME's if you agree to sell our products we will protect you from discount outlets" - the more DMEs Resmed could sign up gives them the springboard to do a massive launch should they come to market with some new market-killer machine/mask (my guess). If Resmed did introduce a new 'market-winning' product or product set, it would explain to me just what they are doing now. They may even have a model with a price under all their competitors. Getting the DMEs onboard on the basis that Resmed will protect them, makes sense if you have something big for them.
- I don't believe Resmed are particularly interested in what we here think of them (clearly) from a business perspective we are only repeat business but that business is slow compared to if Resmed's research believes there is a significant growth spurt likely to be coming (as outlined, they be planning to create one either by a massive launch of a new 'leap forward' product set or because of some other data they may have access to regarding market potential)
The above is purely thinking aloud & may be quite off target. But, Resmed are cash rich and have had an outstanding 2 years of growth. That says to me they have clear plans for the next cycle & this move may well be part of that.
DSM
#2 RestedGal - just noticed your post above this one & it seems to me we are thinking along some similar lines.
Your point about protect 'brick and mortar DMEs is well taken.
D
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