What is the purpose of ResMed?

In my openion, the purpose for any business should be, "To satiafy the needs and desires of their customers".

As an end-user, I want high quality equipment at the lowest price I can find. At the same time I realize that the manufacturer has to invest a lot of money in order to be able to produce the equipment. Also, that shipping, service, etc., etc. have to be paid for.

I have come to realize that ResMed does not see us end-users as being a customers because they: 1) refused to sell me some ResLink components, 2) forbid selling across national borders, 3) mandate that internet prices be closer to the DME price, even though the internet seller isn"t involved with the added expense of patient handholding and insurance red-tape and is willing to cut prices in order to increase sales.

Markets are messy, even the regulated semi-free one that we have.

I can't speak for Resmed. However, it would seem to me the purpose of any business would be 1] to provide a product that someone wants and/or needs at a price wherein production and research and development expenses can be met; 2] a reasonable profit made that, if it is a publicly traded company, provides an attractive return to its investors so that the stock will attract and hold investors; and 3] to allow reasonable wages and salaries for its employees and officers.

nosbig17 wrote: ... I have come to realize that ResMed does not see us end-users as being a customers because they: 1) refused to sell me some ResLink components, 2) forbid selling across national borders, 3) mandate that internet prices be closer to the DME price, even though the internet seller isn"t involved with the added expense of patient handholding and insurance red-tape and is willing to cut prices in order to increase sales. ...

1] We the end-users are NOT their customers. We do NOT buy direct from Resmed, the DME suppliers whether local or online, are their customers.

2] ResLink and the software were never intended for use by the patients. They are produced and intended to assist sleep professionals w/patient evaluation and treatment.

3] There are individual country restrictions on the sale and shipping of medical devices. The USA has some of the strictest laws in this regard.

4] Resmed has stated their reasons for this. It is their perogative to set such policies whether we, the end-users, like them or not. I don't like it but I have no control over the matter. I can see some validity to their reasoning. Not many, if any, online DME suppliers are as good and conscientious as cpap.com. cpap.com has spoiled us and we darn well do appreciate it!

Actually, the $1 objective of ANY business is to make a profit. If it has publicly traded stock, there are lots of stockholders that want to see a profit for their investment......either in dividends or in increasing stock value/prices.

How a business goes about doing that is what will determine the outcome.

Den

Wulfman wrote:Actually, the $1 objective of ANY business is to make a profit. If it has publicly traded stock, there are lots of stockholders that want to see a profit for their investment......either in dividends or in increasing stock value/prices.

How a business goes about doing that is what will determine the outcome.

If you add the requirement to be a legally operating business, then staying within the applicable legal/regulatory boundaries, while achieving the above, also applies!

Cheers,

Bill

I agree that the objective of a business is to make a profit. Do you see the objective and the purpose as one and the same?

And the beat goes on.........

Resmed has drawn their line in the sand. It is apparent they don't intend to budge from it, which is wholly their prerogative.

We are not their customer base. The DME is their customer (be it brick and mortar or internet) - one day the insurance companies will figure out that the DME is ripping them off and will do something about it. It's beyond me how they haven't figured it out yet, but I'm thinking that they are part and partial to the whole situation.....
Those without insurance are taking it in the shorts and I don't see that as being fair, but it is what it is......

In the meantime --
The only way to affect their decisions from our perspective is with the wallet. If at all possible, just don't buy their stuff (I know there are those out here that rely on Resmed masks as the only ones that work -- by all means, do what you have to do).
If your DME tries to "push" a Resmed machine on you, respectfully decline, and ask for a competitors machine (for the most part there isn't a dimes worth of difference in the comparable blowers). If they only have Resmed, find another DME - in most places there is more than one that the insurance company will deal with (even in my very rural situation there is more than one DME. I just happened to get hooked up with a decent one). If you can use a non Resmed mask, do so.
It is still up to the competitors to develop products that are equal or better, so it is also appropriate to pressure the competitors to step up their game.

They're all in business to make $$$ for their stockholders. That's our system, and for the most part it's a pretty good one.
We, the down line, do have the ultimate "power" if we just don't use their stuff.....no sales, no profits = pissed off stockholders which can change business philosophy......(and fill golden umbrellas, but that's a whole other discussion )

My two tenths of a dollar
cheers
goose

nosbig17 wrote:I agree that the objective of a business is to make a profit. Do you see the objective and the purpose as one and the same?

When I put both words into a Microsoft Word document and then use the Synonyms option......most of the same words appear.
In the business world, there may be some minor distinctions where a business is actually making a product for sale as opposed to a business that is wholesaling/retailing products that have already been made.
The bottom line is that if you don't HAVE a "bottom line" (profit), you won't be able to exist for long.


Den

Wulfman wrote:Actually, the $1 objective of ANY business is to make a profit. If it has publicly traded stock, there are lots of stockholders that want to see a profit for their investment......either in dividends or in increasing stock value/prices.

How a business goes about doing that is what will determine the outcome.

Den

Yes Den, it is that simple. Well said. The baker produces wonderful tasting bread that his customers love because he wants to make a profit to support his family.

If you don't want a return on your investment, then start a non-profit or not-for-profit organization - lots of tax benefits.

billbolton wrote:

Wulfman wrote:Actually, the $1 objective of ANY business is to make a profit. If it has publicly traded stock, there are lots of stockholders that want to see a profit for their investment......either in dividends or in increasing stock value/prices.

How a business goes about doing that is what will determine the outcome.

If you add the requirement to be a legally operating business, then staying within the applicable legal/regulatory boundaries, while achieving the above, also applies!

Cheers,

Bill

I knew there was something I wanted to add to Bill's words of wisdom.....and then it came to me......"ENRON"......the model of corporate greed and (bad) numbers crunching that should be avoided.

Den (giving thanks that he didn't work for THAT outfit)

Wulfman wrote:......"ENRON"......

Which reminds me.... recently saw the documentary movie called "Enron - the smartest guys in the room." Man, was it interesting. And so well done. Rent it if you haven't already seen it!

rooster wrote:If you don't want a return on your investment, then start a non-profit or not-for-profit organization - lots of tax benefits.

Minor off-topic correction: the word "nonprofit" is a bit of a misnomer. Well-run nonprofits do make a profit. Just like any business, if they don't make a profit, they go under.

Doug.

geoDoug wrote:

rooster wrote:If you don't want a return on your investment, then start a non-profit or not-for-profit organization - lots of tax benefits.

Minor off-topic correction: the word "nonprofit" is a bit of a misnomer. Well-run nonprofits do make a profit. Just like any business, if they don't make a profit, they go under.

Doug.

True, Doug.

In the nonprofit world, it is called a fund balance. Most entities that provide funds to nonprofits through grants expect the nonprofit to expend all monies in the grant for their intended purpose. If not, the amount remaining often goes back to the funder. Some funders allow those funds to be carried forward into the next year, but still expect all the funds to be expended.

Most nonprofits seek non-grant sources of unrestricted funds through donations and fund raisers. Those monies can pay for unattractive costs (e.g., administrative salaries),continuation of programs after pilot project funds end, and to build the fund balance. A healthy non-profit has a fund balance that could see it though hard times (e.g., unexpected loss of grant funds, downturn in the economy).

Obviously the nonprofit model could not apply to a medical equipment company given their capitalization needs, and R & D and marketing components, but I can imagine the possibility of a nonprofit DME -- that would be interesting.

Janna

A "not-for-profit" DME supplier??? Yer dreaming, right, Janna?? If wishes were horses ..... the world would be submersed in manure. *sigh*

Ah, but we can dream, can't we?

I'm still hoping for a "not-for-profit" petroleum company :<)

Slinky wrote:A "not-for-profit" DME supplier??? Yer dreaming, right, Janna?? If wishes were horses ..... the world would be submersed in manure. *sigh*

Ah, but we can dream, can't we?

As long as I am dreaming, here is what my nonprofit DME would look like:

Drbandage -- Medical Director
Slinky -- Medicare Specialist
Rested Gal -- Mask Fitting and Machine Explaining Specialist
Padacheeks -- Comfort Care Specialist
Sleep Guy -- Fragrance Specialist
Mike Moran and Babette -- Humor Specialists
RosemaryB -- Family Consultation Specialist
SAG -- Technical Advisor
Snordog -- Harsh Realities Specialist

You get the idea. There are dozens of members of this forum who would be valuable staffers in my virtual DME.

Janna