Various reasons are given for the high prices of
hearing aids (HA's.)
While it is true that research and the complexity of
components of modern HA's are a part of this cost, the
real markup is done by the person (audiologists,
dispensers, MD's) selling the HA.
While a HA may have a manufacturer's cost of 0 to
the seller, the seller will often apply a 400% rate of
recovery, resulting in a retail sales price of four times
the seller's cost, ,000 in this case. It is this markup
that creates the high selling price of HA's.
Is this price gouging? No, it is not. The high mark-up
is the result of too few HA's being sold. Yet, there are
some sellers with numerous offices who sell many HA's,
but they generally do not reflect that savings in their
prices. At times, with such volume, much advertising is
done and their prices are actually higher.
Unlike supermarkets that can charge a very low percent
markup because of their high sales volume, HA sellers
need that markup to pay the rent, heat, lights,
advertisements and, hopefully, a fair salary. Most often,
HA sellers are highly underpaid when all factors are
considered.
The same exact HA may have various selling prices. It
can easily vary from seller to seller. It is possible
that a seller may vary the cost of a HA subject to the
financial ability of the buyer. Or, to comply with
incentives established by a manufacturer rewarding the
seller if they sell more of that manufacturer's hearing
aids, etc.
Hearing aid sellers are not required to post their
prices, making it is difficult to comparison shop. In
addition, since regulation is minimal, hearing loss
testing and counseling often vary from seller to seller
resulting in varying amounts of time spent by the seller
in concluding the sale.
It has been considered that sellers, should unbundle their prices. This has not caught
on. Unbundling means that the seller would charge a
separate price for the HA, and then show the additional
charges for testing, counseling, t-coils, etc. While this
does allow the buyer choices, the average buyer is
usually so lacking in knowledge that this unbundling can
add to their confusion.
- What to do?
- Be aware that there are no standard prices
for HA's, repair costs, or related services. At
the first visit or phone call to a HA seller,
determine the costs that will be incurred. This
is of particular concern where a person, in not
being satisfied with a HA, returns it within the
trial period. Some sellers charge little to
nothing for the trial, others charge hundreds of
dollars. It is vital to determine this potential
cost before the sale, and to get the terms in
writing. Be sure to specify that the 30 day trial
period begins on the day of the last adjustment.
In Florida, a Hearing Impairment Bill was passed
relating to their 30-day HA trial period. The law
requires a refund “for a valid reason. The
Board of Hearing Aid Specialists included the provision
that the seller may determine whether a valid reason
exists for returning the HA. If the seller feels the
purchaser is unreasonable, had not given the aid a fair
chance, or that there is a measurable improvement in the
purchaser's hearing, he can refuse to grant the refund.
Under a supplementary rule devised by the Board of
Hearing Aid Specialists, sellers may retain 0 for one
HA and 0 for two HA's plus 5% of the full purchase
price. If a person was recommended two HA's at a cost of
,000, and returned the HA's within the trial period,
they would be charged 0 plus 5% (another 0) for a
total cost of 0, AND THEY STILL WOULD NOT HAVE HA's.
In the above case, if 4 hours were spent, the rate of
pay to the seller would be 0 per hour. Meaning the
seller could make a high level of living off nothing but
failed sales. In addition, many HOH people would be
turned away from HA's, possibly forever, by this demented
sales charge.
There are many who feel that charging any such costs
to a consumer, for a failed attempt, is unconscionable
and will damage the consumer, causing the person to not
readily try HA's again (this includes William Austin, CEO
of Starkey.) This will only add to the poor image of the
HA and the industry.
HOHA agrees with this. Any failure of that process
which would have created a profit to the seller should be
accepted as a poorly processes sale without charge to the
customer. Consumers need to cooperate and avoid involving
themselves with sellers who charge such fees.
