Dear Resmed. Why are you changing cpap internet retailing?

[RMD Stockholder]

Dear Resmed,

How will your actions result in benefit for your shareholders? I just don't get it. I do think your minimum price effort will be very entertaining to watch! The idea of trying to control a distribution channel as established as cpap internet retailing, considering the competition you have, is just stunning. You are so bold! No doubt your actions will make a great case study in business and perhaps legal classes for many years to come.

So far we do not have much information from you. Since we are the people that live and breath cpap, since we are cpap product end users, since we are ultimately the source of your wealth, perhaps you will grace us with some response. I have gathered a number of questions from this forum and included some of my own. Will you visit with us?

Do you think your existing competition is going to follow your lead? Do you want them to follow? Do you trust them? Do they trust you? Haven't you had legal battles with them? Why would a company with little market share support a company with large market share? If you do get control of the internet retailers of cpap, won't new players move into that distribution channel and take advantage of the lack of competition, especially if margins are increased by your action? What happens to you if one of your major competitors does not go along with your minimum prices? What if they say yes to minimum pricings but set them lower than yours?

Won't competitors who undercut your internet pricing gain strength at your expense? How can you compete if you choose to price above the fair market? Will you drop your prices from the big increases rumored? Do you think cpap users will pay such premiums? Won't there always be plenty of websites selling equipment at competitive prices?

Will the cpap internet sites continue to take market share from the storefronts? Are you trying to support brick and mortar dealers over internet retailers? How can you take such action unless you believe that ultimately the brick and mortar dealers and/or manufactures kill off the internet retailer? Are you worried that patients may not like your actions and hold it against you? Where is the payoff for Resmed shareholders?

I hope you respond.

Dear reader,

Unless you are representing Resmed, you may not have much to say about this post. If you think it worthy, please bump it up the forum with any comments or questions you may have about Resmed's actions. If not, let it sink into the abyss of endless posts which is its ultimate fate.

[RMD]

Dear Stockholder,

We're doing it simply because we can. We're also changing our stock symbol from RMD to EGB just for kicks. Mwwwwaaaaaaaaaa!!!!!!

$incerely,
Evil Gods of Breathing

[tomjax]

To monitor or participate in the message board at resmed, go to:
http://finance.yahoo.com/q?s=RMD
Click on message board.
Not sure if you have to be loggged in to yahoo finance to do this, but it is an opportunity to post over there and get responses from those at the message board.

There seems to be no mention of the proposed policy change, but all seem to be very bullish on RMD.