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Mr.David Brooks,the very popular Journalist for the New York Times, and the closest to Conservative Thinking you will find in that Newspaper, wrote on yesterday's OP-ED page in "Questions for Dr.Retail:Listen,the essential competiktion in many consumer sectors is between commodity providers and experience providers,the companies that just deliver product and the companies that deliver a sensation,too".As I read that, I couldn't help but apply that thinking to the retail Hearing Aid Business.
COSTCO is strictly a Commodity Provider and that especially applys to the way they sell and fit Hearing Aids.
Their Hearing Aid Facility, is the largest ready-made Sound Proof Room produced.
It is located within, what could be classified as a Warehouse with steel racks.
Within that Box, there is an Audiometer.
They administer a Basic Hearing Test, and then they take the order for a set of hearing aids, at the choice of the Customer.
Their Dispensers are Licensed Order Takers or Clerks, or to be kind, as everyone in Retail is now called: Associates.
They are the only State Licensed COSTCO Employees in the Warehouse.
The only reason ANYONE buys HEARING AIDS from them is because of PRICE.
I think the only reason anybody buys anything from COSTCO is because of PRICE.
THEY ARE A PERFECT,COMPLETE,AND TOTAL EXAMPLE OF A COMMODITY PROVIDER.
Mr. Brooks writes about the EXPERIENCE PROVIDER.
At an EXPERIENCE PROVIDER, you sustain an EXPERIENCE in addition to the COMMODITY.
As an example he uses Safeway compared to Whole Foods, the PC compared to the Mac, Holiday Inns compared to W Hotels, Walgreens compared to The Body Shop.
I supposed he could have included SEARS,TARGET,K-MART,WALMART, compared to Bloomingdales,Nordstroms,etc.
Some Providers in the Retail Hearing Aid Business grasp and exploit the "Experience" theory.
Some try to capture the
"MEDICAL" IMAGE.
Some providers even wear WHITE COATS usually worn and associated with MEDICAL DOCTORS.
Such ploys are deliberate and they are effective.
It has been my experience and observation over the past 25 years in the Hearing Aid Industry, that there is no doubt that IMAGE is very important.
Just as People prefer to Dine in nice surroundings, they also prefer any type of SERVICES, in nice,clean,facilities.
But I believe, the most important considerations in the Retail Hearing Aid Business, is Honesty,Integrity,Dedication,Compassion,Empathy,Fairness,Experience,Dedication,Attitude,Sincerity, Knowledge,Understanding,and Communication Skills.
All Virtues in how One Human treats and respects another Human Being.
But each Person makes that Decision on his own.
In the COSTCO example, as far as Hearing Aids are concerned, it is even more pronounced because of PRICE DIFFERENTIAL.
There is no other COMMODITY or PRODUCT or SERVICE, they OFFER and PROVIDE, that is so far or more advantageous, than in the HEARING AID COMMODITY, because of the PRICING BY MOST COSTCO COMPETITORS".
While Independent,Groups,Medical Doctors, and other PROVIDERS, continue to MARK-UP THE COST OF HEARING AIDS 3 OR 4 TIMES, RESULTING IN RETAIL PRICES OF $3,000 OR $4,000 OR $5,000 OR $6,000 EACH, COSTCO BUYS HEARING AIDS FOR $300 EACH AND SELLS THEM FOR $1700 EACH, AND LOOKS LIKE A HERO,EVEN THOUGH THEIR PROFIT MARGIN IN THE SALE OF HEARING AIDS IS AS MUCH AS 20 TIMES HIGHER THAN ANY OTHER PRODUCTS OR COMMODITIES THEY SELL/.
At least they offer an alternative to the outlandish prices that most other HEARING AID PROVIDERS OFFER..
As I have said before, all COSTCO OFFERS IS PRICE|.
THEY KNOW IT, AND THEY ACT AS IF THEY ARE THE ONLY GAME IN TOWN/.
AND IN MOST CASES THEY ARE RIGHT|.
If their Hearing Aid Provider Competitors had any Brains, they would price the few Hearing Aids Brands, and Models, that
COSTCO offers, at the same price, and they could take COSTCO out of the Hearing Aid Business..
But they aren't that BRIGHT|.
Alsip Magistrate 127dd8e
 Comments (70) |
| 1. Written by elijahlovejoy on April 15, 2012 from santa barbara, california, US You do NOT get what you pay for. You can pay $1000 for a Rexton Gem 12 at Costco, or $2000 or even $3000 for the exact same Rexton Gem 12 at a shop working on commission. YIKES! Avoid commission sales. Costco techs are on salary. They want you happy, but don't mind if you don't buy, or buy inexpensive. The poor small hearing aid shop MUST squeeze you to buy TWO aids, and Expensive ones at that. I doubt they give Costco's 90 day easy return policy. I lost an aid about a year after purchase, and Costco replaced it. NO hassle. Costco REXTON aids are made by Siemens. I've been told that it costs Siemens $50 to make a HA. They sell it to Costco for $500. Costco sells it for $1000, so there is $ to provide fine service. Be sure to get it. Other stores charge two or three times as much for the SAME product. They also probably pay more than Costco based on volume. I'm a retired prof, and study this a bit. Write to me at if you wish. I'll answer when I can. elijah lovejoy, Ph.D. Retired from the U.S. State Department and from the University of California, Santa Barbara. I studied auditory psychophysics for 6 month in my Ph.D. psych program at the U of Pennsylvania, and still remember SOME of it. 40 years ago! Don't be rushed. Take your time. If it feels wrong, go elsewhere. (I suggest Costco.) some comments are likely made by interested parties, hoping to help a particular shop. I'm not a costco employee, just a very happy customer. These are tough times, I believe, for the small hearing aid shops. Not sure about audiologists, but check Costco before you buy. |
| 2. Written by James on March 29, 2012 from miami, florida, US As a licensed hearing specialist I am amazed how people compare the costs of hearing aids and assume higher-end products are "no different" than lower-end products. Don't judge a book by its cover. The R&D that pours millions into developing hearing aids that best emulate real ears is not in vain - if you understand the complexities of human hearing. I am not knocking the competition, but too many times I see the fly-by-nights swoop in only to take one's money and then dissapear into the night. Companies like Beltone, for instance, have been around and will continue to be there when you need them. Granted, not every hearing specialist lives up to the reputation. Same holds true for any other retail outlet. Still, check the history of such companies. There is as much success as failure and either is the burden of both patient and practioner. Many companies offer lower priced products but the truth is that they only help just so much and people expect their new aids to make their hearing "normal." Not going to happen. At the same time, it is ironic that people will spend an extra $10K on a car when one less expensive will do. They will spend $5K for a nice "theatre room" when a big screen alone will suffice. They do it because they want it. Fine. People don't wear hearing aids because they want to. They buy them because they need them in order to enhance their previous quality of life. What do you think that's worth? Thanks for reading. |
| 3. Written by Don on February 16, 2012 from orlando, florida, US I went to Miracle ear, Hearing Assoicates of Central Florida, Beltonerom $5ooo-6400! Tryed some on and then went to Costco. Thank God! Great service and got Kirtland Top of the line for $1999 for both. 5 channels and lots of options. They work so good and as good as the pair that Audibel tryed to sell me that they said retailed for $7400 but would sell them to me for a mear $6200. These are made by Siemens and there service was great.. Go to Costco last!!  |
| 4. Written by MB on January 25, 2012 from warrensburg, missouri, US Just purchased a pair of Resound Future Hearing Aids at COSTCO today. Both aids and a remote for $2750. Excellent service, warranty, and value. 3 year warranty and 2 year loss/breakage warranty. By the way if you purchase them using the COSTCO American Express card you get an extra year of warranty. 4 full years of warranty! Excellent all the way around. |
| 5. Written by Al on November 27, 2011 from -, -, US Makes me wonder if the writer of this article was paid because he is soooooo far off the mark on Costco. Several years ago, I purchased hearing aid from an audiologist. I was was never happy, many visits and no better results. they sold me CIC which I think were not right for me but they were the most expensive. No demo, no return. I let them rush me into a sale. I decided to upgrade and have been shopping around. I've been to 4 places and the hearing test come out very close but all varied a bit. I would say I felt the most comfortable with the employees at Costco. The 3 other places I felt rushed and indirect answers to my questions. Seemed like the audiologist were only interested in making the highest price sale to get commission, pay for receptionist and the fancy building they were in. Funny thing with the 3 audiologist's, when I told them I wanted to look around, none of them wanted me to leave with out a purchase. When I told Costco I wanted to look around, She said Hearing Aids were a major purchase and I should compare. She told me the store hours and would be here to answer any questions. Prices ranged for $7500 to $2000. Costco Rexton being the $2000. I could not tell the difference. Why I will be purchasing the Costco brand. Demo : Costco let me take them out for a test drive in the real world. The other 3 audiologists would let me try them in the office. Price : I could not tell the difference between the Name brand $7500 and the $2000 Kirkland open to air. I am getting the Blue Tooth optional Mini Blu RCU for another $400 Employees : All test came out about the same but Costco Employees seemed to treat me best. Return policy : 90 days - no questions- no return charges. Costco stands behind everything they sell - I have no doubt even if the 90 days passed Costco would still let you return them. Also makes me wonder who these ppl are that have had bad experiences at Costco. Costco is top rated by consumer report. Costco employee's are well paid, good benefits. I would say better than average so why would Costco put that reputation on the line. Me, I'm just an average Joe who works for a living and want the best Value for my money. As with every comment here or on any site, you best to take it with a grain of salt. Do the research yourself, check out several places as Hearing aids are not an everyday purchase. Don't let anyone rush you, make you put down a deposit or charge you for testing. Make sure they have a 100% money back, no questions ask guarantee. |
| 6. Written by Alan on October 28, 2011 from boise, idaho, US The Audiologists at our Costco Have A Masters Degree in Audiology. I felt very comfortable with them and answered every question I had with professional answers. Doesn't sound like just a High School Diploma to me. I have a tendency to buy things that are less expensive for the same item elsewhere. |
| 7. Written by Dave on October 5, 2011 from toronto, ontario, CA Henri your so cheap brother! People need to make a living too. |
| 8. Written by JPA on September 22, 2011 from richardson, texas, US You can either be fit with a hearing aid by a Master's or more recently a Doctorate level audiologist or by a hearing aid dealer with a high school diploma. It is your health and you get to choose. You can either be fit with a top of the line hearing aid or a less complex aid which a hearing aid manufacturer produces for Costco. You get what you pay for. |
| 9. Written by JPA on September 22, 2011 from richardson, texas, US You can either be fit with a hearing aid by a Master's or more recently a Doctorate level audiologist or by a hearing aid dealer with a high school diploma. It is your health and you get to choose. You can either be fit with a top of the line hearing aid or a less complex aid which a hearing aid manufacturer produces for Costco. You get what you pay for. |
| 10. Written by Thomas on August 27, 2011 from chico, california, US I bought the Kirkland Brand (Rexton Colbalt) from Costco. The service was great including the follow ups. These HDs are far better than my free ones from the VA which offered no followup at all, not at all unusual for the VA in my experience. I never even feel I have hearing aids since they have so little weight and are unobtrusive. My hearing has greatly improved and I would encourage anyone to give Costco a try. |
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