what is CPAP profit margin

So Well wrote:
Isn't the desire to obtain a product without paying the producers for their total effort greed?

Right on So Well.

archangle wrote:Don't assume that if the DME pays the manufacturer $500 and charges the patient $1000, the profit is $500. He has expenses, may pay in advance for the equipment, may get paid via a "rent to purchase" system, may have to eat some cost for rental return machines, etc.

However, the markup numbers on a lot of the DME's do seem to be rather extreme.

Yes, and the larger the order potentially the better price break to the distributor and in the end potentially a better profit. Once again the small shop usually can't compete with the major buyers.

Not quite so simple. The FDA 510 (k) process is extremely cumbersome and expensive. Beyond that, no distributor will carry a line without medical product liability insurance, also expensive due to litigation costs in the U.S. And, if you can clear those two hurdles, the devices don't sell themselves. It requires a sales force to gain entry through sleep centers, physician brand awareness, DME vendors (online or otherwise) and insurance companies. The cost of manufacturing ends up being only a small cost of the actual costs of bringing a medical device to market in this country.

alexL wrote:Not quite so simple. The FDA 510 (k) process is extremely cumbersome and expensive. Beyond that, no distributor will carry a line without medical product liability insurance, also expensive due to litigation costs in the U.S. And, if you can clear those two hurdles, the devices don't sell themselves. It requires a sales force to gain entry through sleep centers, physician brand awareness, DME vendors (online or otherwise) and insurance companies. The cost of manufacturing ends up being only a small cost of the actual costs of bringing a medical device to market in this country.

Good points!