Money, money, money

fstanmyre · Post by **fstanmyre** » Wed Jul 13, 2005 11:37 am

Just for the heck of it and in case my Encore reader goes kaput, I checked out our host cpap.com for the price of a new reader. Turns out they sell the whole package, software and reader, for $199. Buy the reader only it's $149, buy the software only it's $99. Now we all know that the software isn't going to wear out but the reader will in due course. Seems to me charging $149 for a replacement reader that at most is worth about $20 is a little heavy handed seems to me. Well at least they aren't charging $199.99 for the reader only but I bet the thought crossed somebody's mind. Hey, what the heck, it's the American way! As long as medicare and the other insurers don't run out of money, everybody gets rich.

tomkat · Post by **tomkat** » Wed Jul 13, 2005 1:33 pm

The Smart Card reader is almost as expensive as the complete Encore Pro package for a very good reason (at least to Respironics). Software may be easily (but not legally) duplicated; the Reader is built specifically for Respironics (same idea that cell phone providers do to keep you from switching carriers). If you were to buy a stock reader from Infineer it would not work with the Respironics software.

mrhyak · Post by **mrhyak** » Wed Jul 13, 2005 2:48 pm

Is the reader really proprietary? Check out this site:
http://www.mako-tech.com/pands/reader_sol/dt3500.cfm
It seems to be the same part #, I didn't see any indication it has been customized?????

kenrose · Post by **kenrose** » Wed Jul 13, 2005 3:29 pm

Here's a good one. I just got off the phone with my DME. I was talking to my insurance co on one line and the DME on the other so I couldn't really give this the laugh it deserves. The DME told me that the software for the Encore program was $1099.99!!!!!!!!! I asked if that was including the machine etc and was told no, just for the software. They also told me that if I was going to buy the equipment elsewhere I would have to return the current equipment to them. The only problem is that my insurance company told me they had bought the equipment not rented it!
A crooked DME, I just can't believe it. I have a retarded sleep doc who insists he knows nothing about the equipment and a DME who is so all about the $ that committing a little fraud (a mistake) is not a problem. It is probably par for the course. What fun. Its not like I have anything else to do.

fstanmyre · Post by **fstanmyre** » Wed Jul 13, 2005 3:50 pm

Looks like Infineer makes 3 readers. The one we all have is the model DT3500 and it appears is used by many different people not just Respironics. It's made in China and probably cost a few bucks to make, maybe only a few cents. The smart card which has the chip on it is so cheap it is a throwaway item. Maybe they are worth $150 as tomkat says, but I sure ain't convinced. Just for the heck of it, I'm going to check around, I'll bet I can get the DT3500 reader in Hong Kong for $10 or thereabouts.

Btw, what do suppose the logic is that if you buy the software and reader separately it's $250 but as a package it's $200?

tomkat · Post by **tomkat** » Wed Jul 13, 2005 4:02 pm

I certainly don't think the Reader is worth $150 - but Respironics and CPAP.com apparently do. As mentioned in my original post this is priced high to limit replication of their software. I was told by tech support at Respironics that the reader contained custom firmware - I really can't verify this until I (or another person) obtains one from a third party source. The data sheet for the product only mentions USB 1.1 (not 2.0) and only lists support for Windows through version 2000 (not XP/Pro). Perhaps custom Readers were made for the current XP operating system.

fstanmyre · Post by **fstanmyre** » Wed Jul 13, 2005 4:14 pm

Good story Kenrose and believable. My sleep doc also never heard of the Encore software. Guess he was a different guy from Sarkel's sleep doc who said Encore software was only for sleep docs. I think there is a lot of really shady operators out there, so buyer beware. Question anything that doesn't make sense. There's a lot of smart people in this forum that will do their best to help.

If you want another funny story, check out one of my earlier posts outlining what it took to get the internal clock in my Remstar set to the current date.

Profits? Resmed's gross operating profit is running about 25%. Not too many business have this luxury.

fstanmyre · Post by **fstanmyre** » Wed Jul 13, 2005 4:17 pm

Hey tomkat, what's the reader worth? Answer, whatever the traffic will bear.

mrhyak · Post by **mrhyak** » Wed Jul 13, 2005 4:18 pm

Well, it may have custom firmware, but before I spend $150, I'm going to check out the alternatives. When I get a chance, I'll open up the unit and see what I see. Maybe the firmware can be copied into a new unit, especially if you have an existing one that is still working. I've been told lots of fibs by techs before who just wanted to protect something. Maybe all the crap I've gone through with my insurance has just made me too cynical!

fstanmyre · Post by **fstanmyre** » Wed Jul 13, 2005 4:49 pm

This is what a smart card reader ought to cost unless it's from Respironics I guess.

http://www.shopping.com/xPC-Hawking_H_S ... iter_HSM1U

Guest · Post by **Guest** » Wed Jul 13, 2005 4:49 pm

fstanmyre wrote: I'll bet I can get the DT3500 reader in Hong Kong for $10 or thereabouts.

I just spent 10 days in HK and one of the items I went looking for was the RemStar card reader. I know HK pretty well, esp all the best computer parts places. I lived there for 3 years until recently. I had no luck whatsoever.

If you can find (or name) any place in HK selling one of these readers PLUS can find one for sale for anything under $800HK ($US 100) Please let me know.

It is very easy to assume that an item is grossly over priced. It is often harder to prove it.

Cheers

DSM

fstanmyre · Post by **fstanmyre** » Wed Jul 13, 2005 5:15 pm

For DSM, I spent 7 years in HK, if it's made in China, you can usually get it in HK which of course is now part of China. Anyhow, that's not the point. The point is these card readers only cost a few bucks to make. That can't be argued. I'd be very interested in how the Respironics arrives at the markup. It may be perfectly valid. It's sort of like the drug companies where the cost of making the pill bears no relation to what medicare pays.

mrhyak · Post by **mrhyak** » Wed Jul 13, 2005 5:16 pm

Fred - you know you posted a "smart media card" reader, not a "smart card" reader, right? There is a difference, my camera uses smart media, my cpap uses a smart card.
I make no assumptions about something being overpriced, but in this case, given compareables, I wouldn't doubt it. I think buyer beware is appropriate.

fstanmyre · Post by **fstanmyre** » Wed Jul 13, 2005 5:19 pm

You are right, I stand corrected. Going to fast.

fstanmyre · Post by **fstanmyre** » Wed Jul 13, 2005 5:24 pm

"It is very easy to assume that an item is grossly over priced. It is often harder to prove it."

No doubt about it. That's our disadvantage.

Money, money, money