Tuesday, April 03, 2012

Markets in Everything: $300 Hearing Aids

Tech Crunch -- "Of the 27 million Americans who qualify for a hearing aid, 75 percent choose not to purchase one — only one in seven Americans over 50 years old who need a hearing aid actually wear one. The problem is a sizable one, so former Stanford University classmates Sam Tanzer and Ross Porter decided to do something about it. In early 2011, they founded a startup called Embrace Hearing to apply some entrepreneurial pressure to the situation. 

The co-founders tell us the top reason that 75 percent of Americans don’t purchase hearing aids is due to a familiar culprit: High cost. If you take it from CareCredit, hearing aids range in price from $1,000 to $6,000, with the average price being $3,000. And for those who do choose to wear them, the top pain point is the high cost of replacement.

Embrace offers three lines of hearing aids, starting at $300, next at $500, and top of the line at $700. Obviously, the whole line prices way below the industry average of $3,000. Because manufacturers tend to have exclusive agreements with audiologists, Tanzer says, they collectively tend to set prices high, but the startup’s German manufacturer only recently decided to enter the market, and as a result, isn’t tied to any exclusive partnerships."

MP: The invisible hand at work.....

7 Comments:

At 4/03/2012 7:13 PM, Blogger abir mandal said...

How much do you wanna bet that Obama and his "healthcare" cronies demand minimum specifications for such implants in order to "ensure quality" and "protect" consumers? Driving up the price to 1000 or more.

 
At 4/03/2012 7:37 PM, Blogger Larry G said...

how did the price go to $1000 to $6000 without Obama's "help"?

or did he cause that also?

 
At 4/03/2012 7:51 PM, Blogger Cabodog said...

In our small town, hearing aid retailers regularly run full-page color ads in the local newspaper.

That only means one of two things (or both): extremely high margins and/or government money being thrown around.

Good to see $300 hearing aids come to the market.

 
At 4/03/2012 8:05 PM, Blogger Larry G said...

these are the older technology models though. the expensive ones are smaller, sit inside the ear.

here's the different styles:

http://astonhearing.com/all-about-hearing-aids/styles-of-hearing-aids/

 
At 4/03/2012 10:42 PM, Blogger Abir Mandal said...

Hush Larry! Obama might here you and mandate newer technology for ALL hearing aids sold in America.

 
At 4/04/2012 9:24 PM, Blogger Abond said...

You get what you pay for. It's always best to work with a local professional who you can meet face-to-face!

 
At 4/05/2012 3:37 PM, Blogger Mogumbo Gono said...

Atlanta hearing aids:

We heard you the first time.

 

Post a Comment

Links to this post:

Create a Link

<< Home