Resmed To Raise Internet CPAP Prices 40%

kteague · Post by **kteague** » Wed Jun 21, 2006 11:06 pm

Ms. Caroline Carr;

Please be informed that I am currently using your ResMed AutoSet Spirit on a trial basis as a diagnostic tool due to my lack of progress on my cpap. I have worked and been insured all of my adult life, until recently. At 54, I am too young for Medicare so I'm going thru the long process of awaiting a disability determination. I have slept better this past few days than in years. Unfortunately, my only recourse is to purchase the machine outright. We both know that the local DME pricing structure is in view of reimbursement, and far beyond the means of your average consumer. The only hope for someone in my circumstance is to purchase a machine through an online DME, so you can imagine my my feelings when reading of ResMed's intention to increase prices 40% to bring them in line with reimbursement.

Not because the company is in trouble. Not because of increased costs in producing existing products. Not because of the expense of the more sophisticated products, as that's already addressed by their higher prices. But why? Because in theory it will increase your company's bottom line? Well, that theory presumes consumers will pay the increase. Many simply can't, those like me who find themselves unexpectedly in financial straits, and those who are the "working poor" with no insurance. Instead of getting more money out of people, you just may lose what dollars you would have had. Even more potential consumers simply won't - just on the principle of the matter.

Oh, I understand that for ResMed this is strictly business. I want you to understand that I too make decisions where to spend my scarce dollars based on business, but I can't disregard integrity. I favor supporting companies that do not (flagrantly at least) assault me with glorified pickpocketing. There will ever be competition waiting in the wings to step up to take care of those disenfranchised by big businesses that have lost touch with the pulse of their consumers.

Finally, my thanks to your PR team for their fumble on that news article - otherwise we the consumer could have only guessed at your mindset behind a price increase. Also, ResMed was not presented in a favorable light in regards to business transactions and mergers. The tone of that article seemed to suggest almost a capitalizing on misfortune, not going where the needs are. You have a great product that helps people, even saves lives. Treat people right and your bottom line will reflect their response.

K. Teague

DME_Guy · Post by **DME_Guy** » Wed Jun 21, 2006 11:41 pm

Apria mainly buys Respironics product so I doubt it's them. I'm curious to see if Respironics will do the same. I think Lincare buys a lot of Resmed products.

Resmed isn't all that great to DMEs either. They charge more for their products than any other CPAP manufacture. They do a good job of marketing to sleep labs and Drs though so it's hard ot not havve their products on the shelf.

[quote="NightHawkeye"]You guys can blame ResMed, but as I keep saying, we are not viewed customers by the manufacturers. Instead, the DME's and physicians are viewed as their customers.

Anybody wanna bet which of their two customer groups is behind this? I'd bet on one of the big DME's. (Can anybody spell A-P-R-I-A ? )

I just have to wonder how far behind Respironics, PB, et. al. will be.

Regards,
Bill

Darth Vader Look · Post by **Darth Vader Look** » Thu Jun 22, 2006 1:13 am

I'm in wonder just like Bill. Will this be a manufacturer wide increase or just something stupid Resmed is going to do I could really see Respironics and P&B come around with an advertising feature saying something like why pay 40% more when the best sells for less. If this is indeed just an increase for online vendors I think I see a class action lawsuit in order by online vendors. This could really do some damage to Resmed and just deserved too. .

Hawkeye · Post by **Hawkeye** » Thu Jun 22, 2006 2:05 am

This is just disgusting. If it isn't illegal, it should be. This reminds me of a letter a retailer once referenced in his catalog saying that he could no longer sell a certain computer companies products via mail because the manuffacturer wanted the dealings with the customers to be face-to-face. Since I pretty much figured that the reason was that they wanted to fix prices. So a never bought another one of that companies systems again if I could help it. And I've placed orders for literally tens of millions of dollars (maybe hundreds) for my employers over the years.

You can't buy back goodwill when it's lost.

Bella · Post by **Bella** » Thu Jun 22, 2006 5:42 am

Handgunner45 wrote:Does anyone else think that the last paragraph of that story will bring the truckers beating on Resmeds door to buy their products.

The whole issue "irks" me, but this bit about truckers really puts me over the edge. My Dad was a driver for more than 50 years, my brothers are both drivers. None of them fit Resmed's stereotypical description.

Do they think that their end-users are too stupid to read there business information?

My only Resmed product is my Swift. It's sad because I love it.

RedThunder94 · Post by **RedThunder94** » Thu Jun 22, 2006 6:14 am

my only resmed product is the mirage s2, but i bought it off auction so they haven't got any money from me, and they never will either. beware the evil resmed, beware the evil resmed. .

Rastaman · Post by **Rastaman** » Thu Jun 22, 2006 6:47 am

I guess I'll believe it when I see it. They're already the highest price in alot of areas if you're comparing apples to apples.

Snoozin' Bluezzz · Post by **Snoozin' Bluezzz** » Thu Jun 22, 2006 8:09 am

NightHawkeye wrote:You guys can blame ResMed, but as I keep saying, we are not viewed customers by the manufacturers. Instead, the DME's and physicians are viewed as their customers.

Anybody wanna bet which of their two customer groups is behind this? I'd bet on one of the big DME's. (Can anybody spell A-P-R-I-A ? )

I just have to wonder how far behind Respironics, PB, et. al. will be.

Regards,
Bill

And there were people skeptical of many of the points negative toward the "industry" brought up in the "Big Lie" thread. This should put paid to them I would think.

It is not about us - the patient. It is not about our health, our well being, our care. It is about what can be ripped out of our pocketbook, giving us the least possible for the most cash. It is about MONEY pure and simple. Should this surprise us? IMO no. Is this unusual? IMO no. Is this wrong? Yes, when anti-competitive practices are used and permitted to persist. Business people do not want to operate in a free market. If they can they want to operate in a demand market they can control and many will go to any length to achieve that goal. We have to fight constantly against pressures and opponents so big, so powerful and so devious as to be incomprehensible.

David

OwlCreekObserver · Post by **OwlCreekObserver** » Thu Jun 22, 2006 8:32 am

Well, I'm sure that the free market will resolve this issue. If a Resmed product is priced 40% higher than a comparable Respironics product, where do you suppose the money will go?

I suppose it's really no different from computer software. Ever try to find a deep discount on Microsoft Office? Not that MS would engage in price fixing, of course.

OCO

Amigo · Post by **Amigo** » Thu Jun 22, 2006 9:03 am

NightHawkeye wrote:You guys can blame ResMed, but as I keep saying, we are not viewed customers by the manufacturers. Instead, the DME's and physicians are viewed as their customers.

Anybody wanna bet which of their two customer groups is behind this? I'd bet on one of the big DME's. (Can anybody spell A-P-R-I-A ? )

I just have to wonder how far behind Respironics, PB, et. al. will be.

Regards,
Bill

This just proves that you cannot be too cynical.

Quite frankly, I'll be surprised if the other manufacturers don't also raise their prices for Internet providers.

Isn't it great how this will help drive people back to DME's like Apria because it will no longer be cheaper to buy on-line? Hmmm, you don't suppose there might be a little collusion here, do you? Apria, et al profit, the manufacturers profit, and we can just go "suck air."

Guest · Post by **Guest** » Thu Jun 22, 2006 9:06 am

...when you only sell 3 machines a year.

Snoozin' Bluezzz · Post by **Snoozin' Bluezzz** » Thu Jun 22, 2006 9:08 am

OwlCreekObserver wrote:Well, I'm sure that the free market will resolve this issue. If a Resmed product is priced 40% higher than a comparable Respironics product, where do you suppose the money will go?

This presumes three things - the market is truly free with relatively easy entry (and exit but exit is always easy), no explicit, or implicit, collusion to fix prices and connected to point two, that Respironics will sustain that 40% differential (slight to no chance IMO).

As Bill said - how long do you expect Respironics to hold the line when on-line makes up just a small portion of their market? Not long I'll bet. Resmed gets 40% more on-line Respironics will not sell that much more, in that market, at their lower price to incent them to keep prices down.

When talking about "big" players, describing this country as a "free market" based country is silly IMO. Barriers to entry are extremely high because of cost and chronic anti-competitive practices between businesses and through the exercise of political clout. The best government money can buy.

David

Amigo · Post by **Amigo** » Thu Jun 22, 2006 9:08 am

kteague wrote:

...Finally, my thanks to your PR team for their fumble on that news article - otherwise we the consumer could have only guessed at your mindset behind a price increase....

K. Teague

Great letter! I can only hope that the rest of you Resmed users do the same, and I can promise I'll write to Respironics if they also raise prices to Internet suppliers.

Guest · Post by **Guest** » Thu Jun 22, 2006 9:19 am

[quote="kteague"]Ms. Caroline Carr;

Please be informed that I am currently using your ResMed AutoSet Spirit on a trial basis as a diagnostic tool due to my lack of progress on my cpap. I have worked and been insured all of my adult life, until recently. At 54, I am too young for Medicare so I'm going thru the long process of awaiting a disability determination. I have slept better this past few days than in years. Unfortunately, my only recourse is to purchase the machine outright. We both know that the local DME pricing structure is in view of reimbursement, and far beyond the means of your average consumer. The only hope for someone in my circumstance is to purchase a machine through an online DME, so you can imagine my my feelings when reading of ResMed's intention to increase prices 40% to bring them in line with reimbursement.

Not because the company is in trouble. Not because of increased costs in producing existing products. Not because of the expense of the more sophisticated products, as that's already addressed by their higher prices. But why? Because in theory it will increase your company's bottom line? Well, that theory presumes consumers will pay the increase. Many simply can't, those like me who find themselves unexpectedly in financial straits, and those who are the "working poor" with no insurance. Instead of getting more money out of people, you just may lose what dollars you would have had. Even more potential consumers simply won't - just on the principle of the matter.

Oh, I understand that for ResMed this is strictly business. I want you to understand that I too make decisions where to spend my scarce dollars based on business, but I can't disregard integrity. I favor supporting companies that do not (flagrantly at least) assault me with glorified pickpocketing. There will ever be competition waiting in the wings to step up to take care of those disenfranchised by big businesses that have lost touch with the pulse of their consumers.

Finally, my thanks to your PR team for their fumble on that news article - otherwise we the consumer could have only guessed at your mindset behind a price increase. Also, ResMed was not presented in a favorable light in regards to business transactions and mergers. The tone of that article seemed to suggest almost a capitalizing on misfortune, not going where the needs are. You have a great product that helps people, even saves lives. Treat people right and your bottom line will reflect their response.

K. Teague

Snoredog · Post by **Snoredog** » Thu Jun 22, 2006 9:21 am

oops that was me above with the Resmed Spirit for sale, forgot to log in.

I also have a non-CFlex Remstar Auto with low hours for sale.

Resmed To Raise Internet CPAP Prices 40%

my letter to ResMed

Re: my letter to ResMed

Re: my letter to ResMed