Resmed To Raise Internet CPAP Prices 40%

Rastaman · Post by **Rastaman** » Fri Jun 23, 2006 7:00 am

My wife and I were discussing this and were talking about how you have to have a prescription for a machine that really can't hurt you in any way. It can only help. There are many things in life that CAN hurt you if used improperly. And many people just grab stuff and start using it without learning about it first. You're able to select from everything available on many many many different product lines. But it's true, you don't have a choice of which cast they put your leg in if you break it. They just put it in whatever works for that particular doctor.

I can see the fear of local DME's if internet sales take off. That's called marketplace HDTV's cost WAY too much right now but you pay it if you want to get that technology before everyone else. Others of us will just wait until enough people buy them and the price comes down to entice those of us who are waiting for a "reasonable price."

In my mind these machines are only worth $400 to $800 for CPAP's to APAP's. Not $1,500. Not $2,000. Not $3,000. But I'm sure just like computers they probably cost alot more at first when they first came out and like calculators the price will continue to drop unless there is some sort of "the fix is in" kind of thing.

I don't like to be price gouged. If it only costs a company $100 to make a machine and they sell it to me for $800 that seems excessive to me and not fair. It shouldn't even be allowed legally. But this is America where "the sky is the limit" when it comes to how much to charge for most things.

Since the machine can't hurt me even if I put it upside down on my head, why can't I just order one over the internet? I CAN! I can go to Yahoo Auctions!

GoofyUT · Post by **GoofyUT** » Fri Jun 23, 2006 7:02 am

[quote="mikemoran"]You guys have been fortunate in that you have doctors and DMEs that atleast have the opportunity to listen to you and try to accomodate your needs. My experience has been quite different because I am with Kaiser in the Washington DC area. My DME's hands were tied. From an insurance provision base they can only provide a straight CPAP with passover humidifier and one mask. Kaiser will not allow them to do any more than that. So Resmed has them locked up for machines and they keep a store room full of S8s.

However, they were more than willing to give me any prescription I wanted as long as I was buying it on my own. When I told my RT the price of things on the internet, she said her prices would be double that and I should buy it online. This told me she was more interested in my therapy than selling a machine. Because of the volume Kaiser sends through her, she probably doesn't need to push any additional machines. Clearly it wasn't a case of her carrying a stock of different machines like other DMEs, she would have special ordered it for me if I wanted it.

Different circumstances, but you know a hell of alot of people go through the HMO system. Many would rather give up the therapy than put more money out of pocket to achieve better therapy. In my case I could afford to do what I needed to live with a CPAP.

There are as many business models out there as there are masks. Resmed is reactiing to their primary customers the storefront DMEs who fear two things. Lower Insurance re-imbursements if Internet sales take off, and the erosion of I am sure higher profit sales in add on equipment. While we react to their announcement, the DMEs are applauding them for fighting the battle they want fought. They can point to their actions and say who is looking out for you, Resmed or Res[ironics? what they lose fromt he patients they more than gain from the DMEs. Sad but true.

Rastaman · Post by **Rastaman** » Fri Jun 23, 2006 7:20 am

I'm trying to grow up. But it's not easy. And those evil evil Resmed folks. OMG! They are SO evil.

Honestly this game is pretty simple unless you're in a similar "Kaiser" situation. Ie. Insurance limitations. You might live in an area where your DME/Sleep Doc choices are limited. But most locations have more than 1 choice. As many have discovered, meet resistance in one spot, move to another. I've had lots of people PM me here and tell me their experiences along those line. Almost always they pick a doc who will give them exactly what they need when they present it that way from the start.

Let me see if I'm on the right page here.......Resmed bad! Respironics good! LOL!

Guest · Post by **Guest** » Fri Jun 23, 2006 8:07 am

GoofyUT wrote:As usual, RIGHT ON MIKE!!!! I mean, we all have to grow up here! We're having such fun vilifying ResMed as evil corporate slobs who are arbitrarily racking in the dough at our expense. All that they are doing is protecting their dealer network, just like manufacturers in virtually EVERY other industry, INCLUDING HEALTHCARE, does. Look at Apple Computer, fer chrissakes!

GoofyUT I think you're twisting Mike's words. I think Resmed deserves to be vilified. I think they are evil corporate slobs raking in the dough at our expense. They are artificially inflating their prices. They are greedy, pure and simple.

Guest · Post by **Guest** » Fri Jun 23, 2006 8:32 am

DME_Guy wrote:What do you think the profit margin is for DMEs?

Rastaman wrote:Not sure what the truth is but I've seen posts here into the 1000's for a $600 to $700 APAP. Maybe they're just pulling our leg but I'm guessing they're reporting what they saw billed to their insurance.

Price using a traditional DME: $2232.65
Price of identical equipment using online DME (cpap.com):$718.75

(see: viewtopic.php?p=36815#36815)

Price using a traditional DME: $1200.00
Price of identical equipment using online DME (cpap.com):$199.00

(see: viewtopic.php?p=36811#36811)

Price using a traditional DME: $2900.00
Price of identical equipment using online DME(cpap.com):$1000.00

(see: viewtopic.php?p=8449#8449)

Price using a traditional DME: $1850.00
Price of identical equipment using online DME (cpap.com): $800.00

(see: viewtopic.php?p=8564#8564)

Price using a traditional DME: $2500.00
Price of identical equipment using online DME (cpap.com): $325.00

(see: viewtopic.php?p=9294#9294)

Price using a traditional DME: $2500.00
Price of identical equipment using online DME (cpap.com): $650.00

(see: viewtopic.php?p=78986#78986)

Price using a traditional DME: $3400.00
Price of identical equipment using online DME(cpap.com):$1569.00

(see: viewtopic.php?p=79010#79010)

Rastaman · Post by **Rastaman** » Fri Jun 23, 2006 8:40 am

Well, that basic model would be true about ANY company. They all want to make as much money as possible and to think otherwise would be just darn silly. But my question is why do you people log in as guest all the time? I find some of the most outlandish statements are by the "unknown" guest.

I think only Mike can decide who is taking his statements out of context. I await to hear back on this. This argument sounds like the old AT&T vs. MCI arguement. Everyone thought AT&T was the horrible villain. And MCI was the saviors with same or better service at a lower price. And the whole world is better due to the competition. But was one really all that better than the other? Not really.

Personally, I don't think just Enron is capable of taking your money and running. Any company CAN do that. I think what many of us have a problem with is the negativity that exists here. Leading by example works much better but in the end you can't control other people are MAKE them share your opinions. You can only discuss things casually and come up with your own opinions, be them same or different. (this argument constantly reminds me of one near and dear to my heart about music and which bands are the BEST. No band or music genre is the best. They might be best for you but not for even the "majority" or most. We're all very different and unique, it only makes sense that we have different ideas about most things. Otherwise, the world would be a boring place. And yet for some........having everything pigeon-holed and in one neat little place works well for them.

Rastaman · Post by **Rastaman** » Fri Jun 23, 2006 8:41 am

Anonymous wrote:
DME_Guy wrote:What do you think the profit margin is for DMEs?

Rastaman wrote:Not sure what the truth is but I've seen posts here into the 1000's for a $600 to $700 APAP. Maybe they're just pulling our leg but I'm guessing they're reporting what they saw billed to their insurance.
Price using a traditional DME: $2232.65
Price of identical equipment using online DME (cpap.com):$718.75

(see: viewtopic.php?p=36815#36815)

Price using a traditional DME: $1200.00
Price of identical equipment using online DME (cpap.com):$199.00

(see: viewtopic.php?p=36811#36811)

Price using a traditional DME: $2900.00
Price of identical equipment using online DME(cpap.com):$1000.00

(see: viewtopic.php?p=8449#8449)

Price using a traditional DME: $1850.00
Price of identical equipment using online DME (cpap.com): $800.00

(see: viewtopic.php?p=8564#8564)

Price using a traditional DME: $2500.00
Price of identical equipment using online DME (cpap.com): $325.00

(see: viewtopic.php?p=9294#9294)

Price using a traditional DME: $2500.00
Price of identical equipment using online DME (cpap.com): $650.00

(see: viewtopic.php?p=78986#78986)

Price using a traditional DME: $3400.00
Price of identical equipment using online DME(cpap.com):$1569.00

(see: viewtopic.php?p=79010#79010)

Guest · Post by **Guest** » Fri Jun 23, 2006 8:58 am

RedThunder94 wrote:you yourself was posting on this board crying about not having c-flex, now your taking the opposite view. whatever floats your boat, pal. are you in politics? anyways, i loved having this most interesting conversation, but i have to work tomorrow so i need to hit the sack,

---to be continued.

RedThunder94, I wondered the same thing. According to his profile he's in auto insurance or used to be until he took a full time position pontificating on this message board. .

mikemoran · Post by **mikemoran** » Fri Jun 23, 2006 9:19 am

I prefer to think of it as GoofyUT understandign what I said and applying his own valid perspective on it. I don't completely disagree with him. Resmed has disregarded a segment of the market. Informed patients who manage their own care. We have a right to be upset at them and should take any action we can to let them know that we should not be ignored.

They are making a conscious business decision to support their pipeline vendors who are responsible for the majority of their revenue. this has been done in many business models. Why do you think un-authorized dealers cannot offer warranties for alot of the stuff sold on e-bay and the Internet? the manufacturer is still getting the same money, the product should be supported for all consumers the same. The reason is they can control the prices with authorized dealers and not let cut rate vendors erode the profitability for authorized dealers.

Not saying Respironics is good either. Aren't they the ones that won't let Canadians buy from US internet suppliers? They are protecting their vendors too, by forcing a whole country of patients pay higher prices. Its business and sometimes you throw out some segments to protect your bottom line.

My biggest issue has always been that the people providing the products have no emotional investment in really helping people. All the manufacturers are pushing APAPs because they need to recover their research dollars and because they can charge a premium for them. The statement regarding the truck drivers just drove that home for me. This guy isn't saying they need help, he is saying they are a population we can milk. At the same time giving the impression that what we suffer from is our own fault for drinking, over working, abusing substances, over indulgence in food and smoking.

Wulfman · Post by **Wulfman** » Fri Jun 23, 2006 9:22 am

I'm sure that the manufacturers and distributors are not giving the local DMEs the best bottom-line price, either. When I was checking out a local DME last year (before I purchased).....after she quoted me some prices, I asked her if they had Internet access on their computer....then asked permission to use it for a minute.....and actually brought up CPAP.COM's website and price list and showed it to her. She informed me that the prices that CPAP.COM was selling their machines for was actually less than she could buy them for.

I'm sure a lot of it has to do with volume purchasing, but don't know to what extent.

Den

oldgearhead · Post by **oldgearhead** » Fri Jun 23, 2006 9:23 am

...what Mike said..

Wulfman · Post by **Wulfman** » Fri Jun 23, 2006 9:26 am

mikemoran wrote:Not saying Respironics is good either. Aren't they the ones that won't let Canadians buy from US internet suppliers?

Mike,

That was actually ResMed, too.

Den

Rastaman · Post by **Rastaman** » Fri Jun 23, 2006 10:24 am

Anonymous wrote:
RedThunder94 wrote:you yourself was posting on this board crying about not having c-flex, now your taking the opposite view. whatever floats your boat, pal. are you in politics? anyways, i loved having this most interesting conversation, but i have to work tomorrow so i need to hit the sack,

---to be continued.
RedThunder94, I wondered the same thing. According to his profile he's in auto insurance or used to be until he took a full time position pontificating on this message board. .

Rastaman · Post by **Rastaman** » Fri Jun 23, 2006 10:26 am

[quote="mikemoran"]I prefer to think of it as GoofyUT understandign what I said and applying his own valid perspective on it. I don't completely disagree with him. Resmed has disregarded a segment of the market. Informed patients who manage their own care. We have a right to be upset at them and should take any action we can to let them know that we should not be ignored.

They are making a conscious business decision to support their pipeline vendors who are responsible for the majority of their revenue. this has been done in many business models. Why do you think un-authorized dealers cannot offer warranties for alot of the stuff sold on e-bay and the Internet? the manufacturer is still getting the same money, the product should be supported for all consumers the same. The reason is they can control the prices with authorized dealers and not let cut rate vendors erode the profitability for authorized dealers.

Not saying Respironics is good either. Aren't they the ones that won't let Canadians buy from US internet suppliers? They are protecting their vendors too, by forcing a whole country of patients pay higher prices. Its business and sometimes you throw out some segments to protect your bottom line.

My biggest issue has always been that the people providing the products have no emotional investment in really helping people. All the manufacturers are pushing APAPs because they need to recover their research dollars and because they can charge a premium for them. The statement regarding the truck drivers just drove that home for me. This guy isn't saying they need help, he is saying they are a population we can milk. At the same time giving the impression that what we suffer from is our own fault for drinking, over working, abusing substances, over indulgence in food and smoking.

Rastaman · Post by **Rastaman** » Fri Jun 23, 2006 10:30 am

[quote="Wulfman"]I'm sure that the manufacturers and distributors are not giving the local DMEs the best bottom-line price, either. When I was checking out a local DME last year (before I purchased).....after she quoted me some prices, I asked her if they had Internet access on their computer....then asked permission to use it for a minute.....and actually brought up CPAP.COM's website and price list and showed it to her. She informed me that the prices that CPAP.COM was selling their machines for was actually less than she could buy them for.

I'm sure a lot of it has to do with volume purchasing, but don't know to what extent.

Den

Resmed To Raise Internet CPAP Prices 40%

Grow up!!

Re: Grow up!!