ResMed Attacks Internet Suppliers

[roster]

I found this post quite interesting:

http://www.sleepguide.com/forum/topics/ ... nst-resmed

[BlackSpinner]

How about a Boycott Resmed facebook page.
It had a great effect on the Bay before the olympics - it got them to sell real Cowichan sweater instead of chinese rippoffs.

[Roman Hokie]

Is this about price control or them policing the Rx requirement for the proper equipment?

Help a newbie out?

[BlackSpinner]

Is this about price control or them policing the Rx requirement for the proper equipment?

Help a newbie out?

All of the above

[Wulfman]

Is this about price control or them policing the Rx requirement for the proper equipment?

Help a newbie out?

Both......AND.....trying to play "gotcha" with the online sellers so they can refuse to supply them with products.
Ya know, those online sellers are E V I L.....they don't support the users as well as the brick & mortar sellers do. (being facetious)

At least, that's the way I'm reading it.


Den

[cpapernewbie]

let me now if the Resmed Boycott page is already setup

[kooshbal]

So we know this is happening but what can we do? CPAP.com received my Rx, no problem. I have to go through a preferred provider for my equipment unless I choose to go off the grid and purchase supplies. This is the key point for me. A source or sources to purchase supplies at the lowest possible cost. ResMed is in control because they control the supply chain. CPAP.com and other internet providers should comply to keep the supply chain open. Its the necessary game that must be played. If I have this wrong. Never-mind.

[GumbyCT]

Is this about price control or them policing the Rx requirement for the proper equipment?

Help a newbie out?

Both......AND.....trying to play "gotcha" with the online sellers so they can refuse to supply them with products.
Ya know, those online sellers are E V I L.....they don't support the users as well as the brick & mortar sellers do. (being facetious)
At least, that's the way I'm reading it.
Den

I wonder just whose business model this is?

It seems to me that when they break 'em off and then stop selling their products to a customer, they will next wonder why they are out of business.

[Wulfman]

So we know this is happening but what can we do? CPAP.com received my Rx, no problem. I have to go through a preferred provider for my equipment unless I choose to go off the grid and purchase supplies. This is the key point for me. A source or sources to purchase supplies at the lowest possible cost. ResMed is in control because they control the supply chain. CPAP.com and other internet providers should comply to keep the supply chain open. Its the necessary game that must be played. If I have this wrong. Never-mind.

Here's another option. Check it out.

http://www.cpapauction.com/

It's owned/run by CPAP.COM.


Den

[Wulfman]

Is this about price control or them policing the Rx requirement for the proper equipment?

Help a newbie out?

Both......AND.....trying to play "gotcha" with the online sellers so they can refuse to supply them with products.
Ya know, those online sellers are E V I L.....they don't support the users as well as the brick & mortar sellers do. (being facetious)
At least, that's the way I'm reading it.
Den

I wonder just whose business model this is?

It seems to me that when they break 'em off and then stop selling their products to a customer, they will next wonder why they are out of business.

Maybe the "Chicago business model" that's currently being used in D.C. Worked for Al Capone and others (for awhile).


Den

[PST]

I feel very confident that whether one considers it a good thing or a bad thing, U.S. law does not forbid a manufacturer from enforcing a minimum advertised price (MAP) policy like that of ResMed and the other manufactures, so long as the manufacturer and not the resellers establishes the policy, and so long as the manufacturer does not have anything like a monopoly. A manufacturer can enforce a pricing policy as long as it is not based on an agreement among its customers, the resellers. The antitrust slang for this is a "vertical" price constraint, which is legal. "Horizontal" price constraints normally are not. If ResMed, Respironics, and the others agreed to a pricing policy, that would probably be illegal. Similarly, if a group of DMEs agreed among them themselves to fix a price or establish a MAP, it would probably be illegal. The DMEs can't get together and ask ResMed to fix a policy and pretend that it is ResMed's idea either. But as long as ResMed establishes and enforces the policy unilaterally, it's probably okay. There are many, many businesses in which this is done.

The guy who wrote the letter Rooster quoted says that "ResMed wishes to position themselves as the premium manufacturer of sleep equipment." It is common practice to work at making the public perceive one's brand as the luxury choice, not the discount choice. Think Rolex watches, for example, another business in which MAP is enforced.

I'm not so sure the poster's theory is right. I suspect ResMed understands that in most cases the DME chooses what brand a patient gets, so it is in ResMed's interest to see that DMEs enjoy a healthy markup so they will continue to push ResMed. But, whatever the reason, and whether it is wise or moral, it is legal in the U.S. and always has been.

[dsm]

It sure is disappointing to read about any business being spied upon

Some time back I had the chance to speak to a local (Australian) cpap seller who operates online. He said he had to set up a small 'shop' (basically a drop-off point) in each capital city, that became his walk-in office as he could not sell anything via mail. When I asked him why this was happening he said it was the large buying groups (here they are Chemist shop chains), who put pressure on Resmed to not supply Internet sellers & these chains like to charge high prices. So Resmed gave in to the big buyers & implemented their tight policies.

DSM

[Wulfman]

It sure is disappointing to read about any business being spied upon

Some time back I had the chance to speak to a local (Australian) cpap seller who operates online. He said he had to set up a small 'shop' (basically a drop-off point) in each capital city, that became his walk-in office as he could not sell anything via mail. When I asked him why this was happening he said it was the large buying groups (here they are Chemist shop chains), who put pressure on Resmed to not supply Internet sellers & these chains like to charge high prices. So Resmed gave in to the big buyers & implemented their tight policies.

DSM

That's interesting. I guess it's "good" to hear that it's not just in the U.S.A.


Den

[goose]

Here we go again!!!!
cheers
goose

[Bob3000]

I feel very confident that whether one considers it a good thing or a bad thing, U.S. law does not forbid a manufacturer from enforcing a minimum advertised price (MAP) policy like that of ResMed and the other manufactures, so long as the manufacturer and not the resellers establishes the policy, and so long as the manufacturer does not have anything like a monopoly.

True. And I think it's a fair policy - if Resmed wants its products sold at a higher price then the market demands, good for them. I'll enjoy a DeVilbiss or Respironics device instead. However, colluding with other manufacturers to artificially jack up the price of a class of product IS illegal - just ask the LCD makers who were busted a few years ago (in California, I think) for doing the same thing. If I recall correctly, within a year, all of the major xPAP suppliers began to enforce a minimum internet price. That reeks of price-fixing, is illegal, and will eventually lead to a class action lawsuit if in fact that's what's happened.

It's laughable when the xPAP manufacturers suggest that they are looking out for the patient's best interest by directing customers to brick-and-mortar DME's where they can "get the personal level of care that they need". My ass. They are for-profit businesses and as such, do nothing for their customers that doesn't ultimately benefit the business. That profit-seeking behavior is good per se and is the basis for the success of the Western world, but it's shady to try and pretend that profits aren't what's being thought of here.