In the sale of Hearing Aids, or any other product(commodity) or service, how is the Sale Price determined?
The Basic Business, may well be a Company engaged in digging the ore or coal from the Earth.
They determine what it costs them to bring the resource to market,including Labor, Machinery,Equipment,research,investment,loans,sales personnel,advertising,licenses,leasing fees,etc,etc,etc, and then they arrive at a figure, either by the ton, bushel,futures,etc,completion,foreign and domestic, and then they throw out a price that they think will allow them a decent return on investment, including what they anticipate as future expenses.
At every phase in the design,manufacture,and distribution of the product, the same theory prevails.
The Final Phase of the Cycle, is the Sale of the Finished Product.
If for example, the Finished Product is a Hearing Aid,then those Selling, or Dispensing such Products, makes a DECISION as to how they are going to offer and present that product, the HEARING AIDS.
There are those that figure that the Consumer is only interested in PRICE.
The Result: COSTCO
There are those that are more interested in THE EXPERIENCE, and consequently feel more comfortable in being a Client of a Medical Facility.
THERE IS AN INDUSTRY EFFORT TO CREATE THE IMAGE AND IMPRESSION, THAT THE PURCHASE AND USE OF A HEARING AID, IS THE SAME AS ACQUIRING A PACE -MAKER, which of course is not the case.
If the acquistion,ownership,and maintenance, of Hearing Aids, can be placed in the same category as some type of Medical Device, then obviously there is an opportunity for exploiting the Product for more Profit.
Everyone accepts a Medical Device costs more than a Treo,or an iPod.
The fact is, that a Hearing Aid, is a mass produced electronic device, very similar to an electronic calculator, and is produced at a very minimal expense.
There are many Providers and Vendors, of the Electronic Components, and Microprocessors, for the assembly of Hearing Aids.
Because of the way Hearing Aids are Sold,Fitted,and Serviced, the Price or Mark-Up, far exceeds those associated with say, a Calculator.
The Consumer has to understand, appreciate, and accept, the Differences, in the Acquistion,Ownership,Service, and Maintenance, of Hearing Aids.
Buying a Hearing Aid at a Swap Meet, is probably the least expensive source.
At every level, and every experience, and every service, beyond that Experience, there is a Price Increase.
If the Consumer is comfortable with buying a used or new Hearing Aid at a Swap-Meet, and understands the differences,and accepts the differences,in buying the Hearing Aids, from say a University or a Medical Facility,then they are certinally entitled to do whatever they want.
The Consumer has to understand, and accept, that they are not going to get the same attention and service from a Discount Store or Center, that they are going to receive, from a Private Provider.
A Provider with Carpeting and Air-Conditioning, has higher costs, than those that don't. That additional cost is usually reflected in higher prices.
More Qualified Personnel cost more money that Illegal Immigrants. In any Industry.
Anyone, buying anything, whether its Food, Music,Clothes,Services,or Hearing Aids, has to understand there is a difference in Costs, and then a difference in Retail Prices.
While I don't believe there is any excuse or reason for anyone, buying anything, to pay more than they have to, or should, I think any purchase is a Personal Decision.
Just be aware of what you are doing, what you are paying, and what the Fair Market Price is, for whatever Service or Commodity, you are buying.
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