Bill Bolton wrote:
Well it is not hearsay as I have where possible quoted my sources,
Which still appear to be entirely hearsay.
Since when is quoting a document issued by a company hearsay !,
(2005..2006 resmed profit loss statement at resmed.com/en=us/ select investor and dig a little)
Local internet supplier CPAPaustralia.com.au...current price for 608 $1250, was $1555 at the time I penned my letter, US supplier same machine http://www.cpapusa.com/item.php?product ... PAP+System
$520, (and ships for an extra $100 approximately),
I could no longer get a quote on the machine that I use as the 608 has superseded it,
now I might be stupid, but I fail to see how the local supplier can justify 2 1/2 times the price, and this is the "cheap" internet supplier..now I do not know the firms name but the firm my sleep specialist referred me to the prices started at 2000, and they would only supply one brand !
I am not going to go to the lengths to provide links to every quote but the answer to the question of why are machines so expensive is many fold.
1. They are manufactured to a high reliability standard..this is good
2. They contain technology that many times is still under patent, many of these features are great for some groups of patients, this however does allow for competition on the basis of features not price
3. They are manufactured in western country's to high levels of quality assurance
4. There are a limited number of suppliers or retailers in any market, mainly because of this being a "new" issue for many in the medical field..this unfortunately can lead to predatory pricing for those unable to seek better deals
5. In many country's they are primarily funded by insurance company's, tho this is good for their customers the suppliers do tend to incorporate the cost of these processes in their prices, (for example one of the US Internet suppliers is broken in two, one side for insurance related claims, the other for direct cash customers)
6. Caliber of sales medical staff, engineers etc..being medical related cos they are forced to pay market rates for their highly trained staff..this later shows in both the bottom line and pricing of goods
7. Specifically related to costs of masks..I have worked in the rubber moulding industry and looking at the seals they would be real Pricks to manufacture, as many would probably tear as they were removed from their moulds
8. Ongoing research..both of the local companies put 5% plus of their revenues into research
9. Risk..CPAP is only round 25 years old, potentially it could be a huge time bomb for any of these companies, anything from dust etc from the compressor, carcinogens in the masks etc could show up in the next twenty years, now I fervently hope this is not the case, but we have already seen recalls of both masks and machines for minor faults
10. Cost of capital..as a somewhat risky medical venture each of these companies wants to earn what they can while they can, each is open to the risks of recalls, patent infringements, losing technology edge etc etc.
11. I will also comment on the RESMED financial result last year, gross profit was 50% of revenue (approx) a damn good result,
And probably a dozen more factor`s
Now to the summary, there are both good and not so good reasons for the price levels in cpap machinery, in general hunt for a good deal, but listen to your doctor,be prepared to negotiate, and play hardball with your local supplier..remember it`s a free market out there
(And yes bill I have seen the link to the resmed tango..I hope this helps many people)