Goodbye Resmed. Prices double 9/4/06

General Discussion on any topic relating to CPAP and/or Sleep Apnea.
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Goodbye Resmed. Prices double 9/4/06

Post by Guest » Sun Jul 09, 2006 7:41 am

This website is dropping Resmed due to price fixing and other mandated requirements. Here is the link http://www.youneedsleep.com/resmed


inacpapfog
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Post by inacpapfog » Sun Jul 09, 2006 7:48 am

Gotta feeling we will be seeing more of this!

tooly125
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Post by tooly125 » Sun Jul 09, 2006 8:41 am

inacpapfog wrote:Gotta feeling we will be seeing more of this!
I hope all on-line dealers follow this lead!

If I owned Respironics I would lower my prices slightly and put out a press release on how much more I cared about the end user than Evil Resmed does

Life should NOT be a journey to the grave with the intention of arriving safely in a well preserved body, but rather to skid in sideways, chocolate in one hand, martini in the other, body totally worn out and screaming,WOO HOO what a ride!

Sleepless on LI
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Post by Sleepless on LI » Sun Jul 09, 2006 8:49 am

Let's hear it for Rodney Petersen! I hope all the other sites will follow suit and let Resmed eat their words (and something else I'm thinking of but won't say on this nice site...).

L o R i
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Advertising on wrong site

Post by Advertising on wrong site » Sun Jul 09, 2006 12:16 pm

This appears to be advertising, disguised as "information".

MaskedMechanic

Resmed's attack on our right to a fair price

Post by MaskedMechanic » Sun Jul 09, 2006 1:58 pm

Advertising, no way. Do you think this is some game to this guy Rod? He has put some information on his site about Resmed and made it clear where he stands. Self serving? I think not! Resmed will now cut him off.

First the survey attacking internet providers on HMEnews, Then the investor business daily article about Resmed's price controls. Now we have clear proof that WE are being attacked. Advertising? Show me a more important post on this website!

Resmed is attacking our ability to buy cpaps on the internet at a fair price. Was Paul Revere's message advertising? No, it was a call to arms!


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neversleeps
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Post by neversleeps » Sun Jul 09, 2006 2:04 pm

This appears to be advertising, disguised as "information".
I doubt it. I think this is the owner of an internet retailer refusing to bow to Resmed and explaining why he is removing all Resmed products from his website effective September 4, 2006.

I wonder what cpap.com is going to do?

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Amigo
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Post by Amigo » Sun Jul 09, 2006 2:40 pm

tooly125 wrote:
inacpapfog wrote:Gotta feeling we will be seeing more of this!
I hope all on-line dealers follow this lead!

If I owned Respironics I would lower my prices slightly and put out a press release on how much more I cared about the end user than Evil Resmed does
I hate to say it, but I will be very surprised if all the XPAP manufacturers don't follow the same line. Remember folks it's always about the money...nothing else.

CPAP.com is correct to take a "wait and see" approach to all of this. What is Mr. Petersen going to do if ALL of the manufacturers follow suit...go out of business??


Wulfman-

Post by Wulfman- » Sun Jul 09, 2006 4:20 pm

Amigo wrote:What is Mr. Petersen going to do if ALL of the manufacturers follow suit...go out of business??
If this is what ResMed's (and maybe others') strategy is, then it's going to be successful......they'll get rid of those "burr under the saddle" Internet sellers.....and the "brick and mortar" DMEs will win.
While I applaud Mr. Petersen's "intestinal fortitude" for standing up to ResMed, I'm more interested in hearing what CPAP.COM's response is going to be.

Den


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NightHawkeye
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Post by NightHawkeye » Sun Jul 09, 2006 5:16 pm

Wulfman- wrote: While I applaud Mr. Petersen's "intestinal fortitude" for standing up to ResMed, I'm more interested in hearing what CPAP.COM's response is going to be.
I'm with you, Wulfman.

I tend to think though that if all the manufacturers do jump on this bandwagon, that, however legal it may appear to be on the surface, that they open themselves up to a class-action lawsuit. While such a lawsuit could drag on for years without resolution, it would also not be unheard of to have a temporary injunction enforced against the price controls, thereby effectively negating them long enough for the internet vendors to become a dominant enough force to drive the industry.

I don't think this game is over by a long-shot. Remember also, that hardball tactics beget hardball responses. If all the CPAP manufacturers adopt this strategy then the internet sellers livelihoods are affected as well. I'm supposing that some of them, like in a chess game, are already considering their next moves, and are deadly serious about it.

Regards,
Bill


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Post by Sleepless on LI » Sun Jul 09, 2006 5:27 pm

Speaking personally, I will not be able to buy masks in between the ones my insurance company buys me every six months if all the Internet sites raise their prices according to what Resmed is doing. If I am one person affected that way, I'm sure there are plenty of others, too, who will be put into that position. Right now, I have the luxury of being able to purchase a mask if it looks like it might be something that could work for me; hence, the recent Hybrid acquisition. If the prices go up on the Internet sites, too, such as Resmed wants them to, there goes all those extra masks that people like myself used to be able to purchase; and with it, thousands upon thousands of dollars down the drain for the manufacturers-AND the web sites who used to sell them for a "reasonable" amount.

Bad enough people with OSA suffer with this condition, but to now say that the price of one tiny mask should increase by a ridiculous proportion regardless of where we buy them? I just want to know why they are picking on the poor people who need help to control this problem, rather than trying to help this one group of people who really can use the help. Can this be justified in the name of good business practice or just plain out greediness?

L o R i
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Wulfman-

Post by Wulfman- » Sun Jul 09, 2006 5:52 pm

One thing I keep wondering about is how much difference our (supposed) 5% of the market will make to them?
I haven't checked with my insurance provider about getting additional masks, but since all of my insurance expenditures were in the 2005 calendar year, I'm sure that anything I would get in 2006 (or beyond) would be subject to deductibles (which in my case is high), so anything I purchase will be out-of-pocket because I'm going to be paying for all of it anyway.

This other (phony) survey they (supposedly) had TAS do for them was a joke, too. I couldn't find any question that related to getting/replacing mask PARTS. As is the case of many masks, the cushions and headgear can be replaced without having to purchase a completely new mask. The frequency they were talking about isn't upheld by many/most insurance providers.....but apparently is in Medicare. Hmmmmm......I wonder who they're planning on price-gouging? AND, since many of us are approaching that "Metalic Age" (silver in our hair, gold in our teeth and lead in our butts), I'm sure they're counting on some extra income from our generation.....sooner or later.

Greedy bastards!

Den


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Roger...
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Post by Roger... » Sun Jul 09, 2006 6:56 pm

I'm not a lawyer, but I do remember when our attorneys came in and told us how we can't control the retail prices of our products, and we can not charge one class of outlet more money than another class of distribution. Volume discounts were acceptable, as long as all classes of distribution had the same pricing opportunities. MS spent a lot of money defending their dealer bundling restriction which had a similar price effect and lost a lot of money as a result in fines and punitive payments.

To be sure I remembered the advice correctly, Google surfaced this blurb:
The Federal Trade Commission Web Site


Clayton Act (15 U.S.C. §§ 12-27, as amended)

The Commission is charged under Sections 3, 7 and 8 of this Act with preventing and eliminating unlawful tying contracts, corporate mergers and acquisitions, and interlocking directorates. The statute was amended by the Robinson-Patman Act, 49 Stat. 1528, 15 U.S.C. §§ 13, 13b, and 21a, under which the Commission is authorized to prevent certain specified practices involving discriminatory pricing and product promotion

More on the Clayton Act is available by clicking on the Clayton link.

It is too hard to tell from this altitude and air pressure whether the ResMed policy restrictions fall into this "discriminatory pricing" control. but it sure seems like they have said "if you are an Internet class of dealer and sell our products over the internet, then you must pay more money. Making me wonder if we don't just have some brain-dead manager without the sense to check with competent council before jumping off their silly bridge. Now it could be they need to raise prices and everyone will pay the same price, but if that is the case why crank-up the Internet dealers with a convoluted policy and risk a legal action?

For certain someone will test this price control policy and we might find ResMed coming back with spin on how people misunderstood their intentions and everything is now back to how it was before.

As for the part about ResMed wanting to know who is buying their gear, imagine reading a web site's privacy policy that said, "we will tell the manufacturers all about you if you buy from us." When I saw that policy statement at the first post's link destination, I got a strong sense the people making the ResMed decision were about as grounded as a passing meteor and may only last as long.

I should ring CPAP.COM get an extra "Dancing-Activa" mask-element before school opens again.
Roger...

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Rastaman
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Post by Rastaman » Sun Jul 09, 2006 7:14 pm

In a way, we're our own worst enemy. While I'd like to blame The American Medical Association, lobbyists and the medical community in general, we the people can control more than we think. And many people ARE taking stands on this issue. This, more than anything else, is a scare tactic. But the bottom line is that people without insurance won't be able to afford Resmed products or any other manufacturer that follows suit.

But that's where we come in. For the brands that are left we can determine which ones work the best for the best price. We do it everyday anyway. Many of you have mentioned that other brands beyond the big three are very good brands. Some brands will work just as good. Defining which ones is the big key. We gotta help each other. We do that all the time too.

That release (in the link at the top) was a great stance. I commend it. Why sell Resmed products if people aren't going to buy them. Resmed wants them to up the price. Does that mean Resmed will get more for each machine or does that mean that the vendor will get the extra money?

Either way, we the people are the ones buying from the internet websites. When we need our back-up machine or parts or whatever, we go through a website when our insurance won't cover it. We HAVE to. Most people can barely afford co-pays and deductibles. And not only that, but take a look around you at poeple who are now seasoned. It amazes me how much they spending on medications and costs related to medical. These people are on fixed incomes. They are having to choose to eat or pay for medicine. And many of these people retired from good jobs. But America is trying to take every last penny before they go.


_________________
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Mask: Eson™ 2 Nasal CPAP Mask with Headgear
Additional Comments: EPAP: 8 IPAP: 15 PS: 3.0

me - woozle

Post by me - woozle » Sun Jul 09, 2006 7:31 pm

Aren't the on line 'stores' just like Costco? I mean, they buy it in bulk, I assume and then sell it for whatever they want? I don't see 'fruit of the loom' or any other manufacturing screaming about costco selling for less. I don't even almost understand the legalities here the Resmed is trying to apply.
I am not naive, however, and understand that the 'new wave' is to buy from the internet - however, as Lori pointed out - if they raise the prices, we won't be able to buy as many masks, which leaves them not really making much more money - ALSO - if we get no relief by buying on our own, I can see all of us going after our DME's to provide the service we need AND require them to give us the product we want - and I think that if we do that, then the DME's will DEMAND more money from the manufacturers for the more services they have to provide (which they should be anyway, but don't ) or assume that this 'cost' will go over to insurance where THEY will have to start paying more for the 'service' and then we again will be stuck with the higher cost in the end - really, in the end!! ugh, If the products are comparable, I have no problem working with a different manufacturer - and making the DME's go thru different manufacturers may be the answer - but as noted here, I don't see how they can set the price as they are trying to do