Audio File of Resmed "Internet Sales are Not a Good Thi

[completelyhosed]

If you REALLY want to know what Resmed is doing and thinking about CPAP products on the internet, here is your link. Resmed explains it all in response to questions from stock analysts and investors.

http://biz.yahoo.com/cc/9/70979.html

This is the Resmed earnings announcement of 8/17/2006. The link will only be up ten days or so. The file is an hour and a half long. At 53:00 it talks about Internet sales not being a good thing. At 58:15, there is a discussion about internet price increase. You may want to skip right to the 53 minute mark once the file is streamed in.


This should remove much speculation and move us all into an understanding of what is going on.

[Paul B]

Interesting information. I couldn't help but notice during listening that the speakers don't have a good understanding of the marketplace. They believe that DME's provide handholding support to new users and that this justifies the higher prices that they charge. In point of fact, and in my experience, greater than 95% of DME's provide less support than the internet resellers do. It's not that the internet sellers offer much in the way of value added services, but they have a built in tech support group in the form of forum users, who are only too happy to talk through and help solve various problems for less experienced new users.

Resmed doesn't really understand their own marketplace and this is why they are making uninformed decisions and attempting to raise prices by 40%. It's really too bad because I think their algorithm serves a lot of people very well, but they are in the process of alienating their potential customers and destroying their credibility.

[Snoredog]

these guys made it very clear they don't like Internet sales. They prefer vertical integration schema where the sleep lab supplies the study, recommends their machines and masks giving the doctor greater control over the patient.

if I am a patient that doesn't have insurance, I'd have to be an idiot to go back to the sleep lab or use a DME like Apria to get my cpap supplies even if they are Resmed and pay 2-3 times higher price for them than elsewhere.

As for their machine products being so great? maybe at one time but it uses a 10-year old algorithm same one found in the S7 Spirit as in the newest S8. Only difference is costs are lower to manufacture S8 therefor 60% profit margins are sustained.

Like all public companies, this company only cares about the whores of wall street and the almighty dollar.

[Guest]

my resmed s6 lightweight CPAP needed a new motor under warranty due to noisy bearings after 2 years and later a repair to some part that was giving the wrong voltage, making the machine shut itself off during my sleep, that repair I had to pay for

since I am australian as is resmed, it concerns me and I think they need to pay more attention to their quality

[billbolton]

Resmed doesn't really understand their own marketplace

Whatever one chooses to think about ResMed's policies, I strongly suspect that they have the actual sales figures for each supply channel at hand and do indeed understand their actual market place very well.

Its a huge mistake to think that the traffic that goes through CPAPtalk is representative of the overall CPAP market place.

Cheers,

Bill

[billbolton]

As for their machine products being so great? maybe at one time but it uses a 10-year old algorithm same one found in the S7 Spirit as in the newest S8.

What's your source for this extraordinary assertion.

Also, the S7 was released circa 2003, as I bought one just after it hit the market, so what relationship does that have to your 10 year assertion?

Cheers,

Bill

[Guest]

As for their machine products being so great? maybe at one time but it uses a 10-year old algorithm same one found in the S7 Spirit as in the newest S8.

What's your source for this extraordinary assertion.

Also, the S7 was released circa 2003, as I bought one just after it hit the market, so what relationship does that have to your 10 year assertion?

Cheers,

Bill

says so in the above audio earnings report had you taken the time to listen to it.

[Paul B]

Bill,

You missed my point, and perhaps I was not specific enough, and I know Resmed understands their sales figures very well, but when I said they don't understand their marketplace, at least in the US, what I meant was Resmed thinks that the DME's they sell through, supply excellent support to their patients, and therefore justify selling at a higher price because of the additional services rendered.

In point of fact, at least from my experience and many others on this forum, the DME's supply little if any support for the most part, although there are a few exceptions. The internet suppliers, like cpap.com, supply equivalent support through the telephone for far less money, and the user support group of the internet forum, in other words all who are logged on here, more than make up for the support that the DME's do not supply, via the open free interchange of questions posed and answers freely supplied by those who have years of experience.

Therefore, why not take the low price of the internet supplier and get excellent support from the user forum. The best of both worlds.

_________________

CPAPopedia Keywords Contained In This Post (Click For Definition): resmed, cpap.com, DME

[Darth Vader Look]

I didn't listen to all the drivel, just from the 52nd minute up to the 60th. It really comes across as the tail wagging the dog or in xPAP terms, Apria commanding Resmed to get in line.

[dsm]

Interesting topic

DSM

[Ric]

If you REALLY want to know what Resmed is doing and thinking about CPAP products on the internet, here is your link. Resmed explains it all in response to questions from stock analysts and investors.

VERY ENLIGHTENING !!!

thanks ch

-r

[Guest]

I listened to the audio. So Resmed views internet sales as "bad medicine" and "bad treatment" and contends that internet retailers "don't give a damn if the patient comes back." However, Resmed is willing to overlook this "bad medicine" and "bad treatment" as long as internet retailers pay 40% more for Resmed equipment. Interestingly, in the same breath, Resmed claims this increase is "not about making more money, but because it is professional and benefits the entire sleep industry."

Oh my. Thanks for the laugh, Resmed.

[Guest]

Internet retailers don't give a damn? Apparently, Resmed isn't aware of this:

To ensure that our customers continue to love dealing with CPAP.com, we've developed a number of absolutely free services for our customers to use including CPAP.com toll free telephone lines, email question submission, frequently asked question lists, CPAP chat rooms, CPAPtalk.com forums, streaming CPAP and sleep disorder related news, videos of every aspect of CPAP treatment, pictures and product descriptions of everything and anything CPAP, patient product reviews, consumer preference reports, manufacturer's product manager interviews, real time order status, mask fitting guide, machine size comparison guide, machine feature comparison guide, this newsletter and newsletter archives, and same day shipping on all stocked orders.

Many of these services are one of a kind. For all their resources, no other CPAP seller or manufacturer has a line up of services that are so accessible and easy to use.

Due to these unique tools, patients and industry professionals alike are flocking to CPAP.com and CPAPtalk.com in ever increasing numbers. CPAP forums are loaded with posts from experienced patients and industry experts helping others with encouragement and practical suggestions. CPAP Internet Retailers are providing great services to CPAP patients to any and all that visit, whether they buy or not.

What is said in industry publications does not mean much. In ever increasing numbers, CPAP patients are going online and voting with their wallets. Our company provides value and service to those seeking it. In the end, watching long term relationships with our customers grow and multiply because of the services CPAP.com offers is all the encouragement and motivation we need.

https://www.cpap.com/DisplayNewsletter/24

[WNJ]

I can only speak to my own experience.

The ONLY reason I searched the internet for CPAP info, found this forum, found CPAP.COM, etc., is the HORRIBLE SERVICE I got at the DME to which my doctor sent my prescription.

Of course, I’m sure that Resmed must think that this was a WONDERFUL DME, as the ONLY machine available to me there was a Resmed S8 Elite with heated humidifier (for almost $2K.)

Unfortunately for Resmed, my insurance required me to rent before buying. During that one month, I took matters into my own hands, bought a Resprionics Auto with Cflex through CPAP.COM, and promptly returned the Resmed S8. I’ve since gone back to CPAP.COM several times for supplies and other items because of the GREAT SERVICE I get there, unlike the lame brick-and-mortar DME.

Yeah, I’m sure Resmed cares deeply about the service we’re getting.

Wayne

[birdshell]

I finally listened to the conference call tape. While the topic of straight Internet sales vs. DME providers has been adequately addressed, there is another point.

If, as the ResMed representative said, experienced users know as much, if not more, about their masks and equipment than the DME providers and their representatives--

and the experienced users would be perfectly safe purchasing from an Internet vendor--while saving money--

WHY ARE THEY MAKING IT IMPOSSIBLE FOR THE EXPERIENCED USERS TO DO SO?

Just wondering....