Rick's Business of Audiology Blog

Who Owns What?

I don't pretend to know for sure, but this is my most recent compilation of who owns whom:

Aplifion (Italian) owns Sonus and the Sonus Network which they are branding as Audiology. They also own Miracle Ear which they are branding for HIS. I think they are really a marketing and promotion company that doesn't actually build hearing aids on their own but purchases them from other suppliers. http://www.amplifonusa.com/about_Amplifon_USA.asp

Oticon has an ownership interest in AHAA. http://www.ahaanet.com/ http://www.oticonusa.com/

Audibel is owned by Starkey. http://www.audibel.com/ http://www.starkey.com/

General Hearing Instruments (Walmart and Wal-Mart Online) http://www.generalhearing.com/about.cfm http://www.walmart.com/ip/Simply-Soft-Smart-Touch-Digital-Hearing-Aid-Pair.-Free-6-Month-Battery-Supply./11981998

Unitron is owned by Phonak

Lyric is owned by Phonak http://www.phonak.com/

Beltone is owned by Resound http://www.resound.com/

I think Siemens is a manufacturer only.

Fun is Good

There is no logistic reason for fish to fly at the Seattle Fish Market. But there is a business reason.

It is fun! It is interesting!

If you have never visited the fish market in Seattle, WA, I encourage you to do so. When the fish, often full size salmon, move from one place to another they fly! Literally they are thrown from one person to other often covering surprising distances. The workers accompany the flying fish with loud entertaining comments. This is fascinating to the customers. It makes it worthwhile visiting even if you aren't planning to make a purchase.

Have you ever paused for a moment to watch pizza dough spin?

Have you ever watched the kids fascinated by the little circles of dough migrating through the Krispy Kreme donut creation machine?

People are inherently curious. They want to see, experience, what you are doing. If you allow them to they will have more fun, like your business more, and recommend you more often.

Make your office fun and interesting and you will have more happy customers.

Bundling: Unique Legal Requirements

Hearing Aids have unique legal bundling requirements that are unique from state to state.

Imagine going to a physician or a pharmacy and thinking if you don't like what they sell you at any time in the next 30 days you can simply say I don't like it and get your money back?

Yet you all cope with various requirements in your bundling decisions.

The Audiologist who takes a few minutes to actually read their requirements and then bundle appropriately will have a competitive advantage over the dispenser who does not.

Bundling: Batteries

There seems to be a lot of discussion about bundling batteries.

To me it seems batteries are an easy item to offer in more than one way.

For your base service package level you could offer a starter pack, and then either pay as you go, or as an additional charge add on where a person can purchase in advance. If it was me I would like to have you automatically mail me what I need so I always have some.

Then for your VIP service package you could bundle batteries as part of the package; perhaps with some additional insurance or special loaner or priority appointment privileges.

Bundling: A Competitive Advantage?

Question about bundling; is it a competitive advantage?

Yes. Right now it is either working as an advantage for you, or for your competitor. But how do you know which?

I believe bundling is a significant consideration for your patients. Not only when they are sitting in front of you, but a week later when they are at the gaming table discussing their purchase with their friends.

If your bundle matches their needs, as they perceive them, then you will be providing them with the best value for the money they spend.

If they think that is not the case then they will think they are being overcharged. (I don't think anyone will ever tell you they think they were undercharged.)

For example: I don't fly on planes for the food. So if I can save $5 on a ticket by having the plane unbundle their food I am happier.

Another example: If you bundle batteries, and yet I find myself buying them near my home when I am already in another store, then I will perceive I purchased something I didn't need.

Bundling: Why Unbundle?

Why unbundle? Because every customer is not the same. No two customers are alike, and therefore they have different wants.

Unbundling is how you meet the needs of each customer as opposed to a one size fits all approach.

I might prefer to buy my batteries at a store near where I life, even if I prefer your expertise for the fitting.

I might prefer to self-insure, and save a little money up front because, as a guy, I assume I can beat the odds.

I might prefer to pay for follow up later, so save some money now. Who knows, I may not need it.

I might expect Audiologists to charge like other Doctors I visit.

I might live in a different area for part of the year, and don't know if I will be back to your office in 6 months.

I might need you to unbundle because it is how my insurance pays for it.

Bundling: Why?

Why bundle? Because it is easier. One price that includes everything is easier for everyone.

Imagine how nice it would be to buy a car that included everything you needed down to future spark plugs, gas, and insurance.

We wouldn't need to think about gas mileage, because the gas would be included. We wouldn't need to think about insurance, because it is included. Expected repairs? No problem, they would just be fixed.

Seems farfetched doesn't it.

Tinnitus Therapy; a useful product.

As you think about your key points of differentiation as an Independent Private Practice Audiologist I encourage you to consider Tinnitus Therapy. Tinnitus Therapy is something that sets you apart as an Audiologist and enables you to help people that often are left unserved.

It helps answer the question; "Why should I call your office?"

Kudos to Sharon.

This article is written better than I could do it so I encourage you to take a moment and give it a read.

http://audiology.advanceweb.com/Features/Articles/Including-Tinnitus-Therapy-in-Your-Practice.aspx

Rick

Another Competitor

There is always another competitor for the private practice Audiologist. Hospitals, Cardiologists, Radiologists, and many other health care providers often operate with little direct competition from their peers.

Audiology is different. There is always another competitor. You may know where they are, you may not. They may be about to open a new office in your market.

This is the nature of your business. Use it to keep yourself and your staff on your toes.

Golf is fun, but it is far more fun with someone you can compete with. Who would watch a basketball game if no one kept score and there was no competition?

Learn to love the competition and what it encourages you to do for yourself and your patients.

Bundling: Audiology has a Unique Problem

Audiologists have an inherent situation most health care professionals don't share.

Because customers have a choice of visiting a dispenser who is not allowed to charge for services or an Audiologist who is the market is confusing for the patient.

I think every professional would prefer not to unbundle, but to just say here is the price and have everyone pay it without question. I think patients would prefer to bundle, at the lower price.

So as long as dispensers are selling hearing aids, bundled because that is all they are allowed to do, then there is an important education component for Audiologists.

Rick

Bundling: Cost Calculation

What does it cost you to profitably sit in front of a patient for 30 minutes?

What is the market rate for an Audiologist to sit in front of a patient for 30 minutes?

If you don't know, then unbundling will have some unexpected surprises for you.

Bundling: You all bundle some, and unbundle some.

I was talking to an Audiologist about bundling vs. unbundling. She said she bundles and it would be unprofessional to unbundle.

I then asked her if someone stops in would she sell them a pack of batteries. Sure. Would she charge to repair a hearing aid purchased out of the area. Sure. When pressed she admitted that if a patient returned every single week for a reprogramming that sooner or later she would charge them, and she quoted me a fee she had set up to do so.

She didn't think of this as unbundling. But it is.

Recently I was talking to someone who tells me they unbundle. Yet they bundle in phone support, free hearing tests, a follow up reprogramming, etc.

I encourage you to think of the bundling / unbundling issue as a continuum. Not an either or; and to realize all of you are somewhere along the continuum.

Buy or Shop: Know the difference and improve your patient outcome.

Some of your customers want a buying experience. Some of your customers want a shopping experience.

Why do you need to know the difference?

So you can maximize perceived value.

When I want a buying experience I don't want any "extras".

I buy gas for my truck. I go someplace where I believe I will get as good a price as anywhere else and where it is convenient. I don't want the person at the station to sell me anything else or explain anything about the gas. I buy Coke. I go someplace where I can quickly pick it up at as good a price as anywhere else. I don't want the cashier or the stock person asking me, or trying to inform me, about my selection or alternate choices. When I am traveling for business I want to buy a room for the night. I want consistency of facilities and I don't want to spend time evaluating lots of options.

When I buy I want a simple straightforward transaction.

Then there is shopping!

When I shop I do want extras; and I won't think of them as extras!

I recently shopped for some wood flooring. I wanted to talk to someone and I visited several retailers and looked online to verify what I was told. I shopped for a pair of indoor soccer shoes for my daughter. I wanted to talk to someone, have several to choose from, and to have her be able to try them on. When I am shopping I do want to interact with someone. I often have questions I want answered. I want to wallow in the experience. My wife and I went shopping for a new car. We wanted someone to talk to us about the cars and to take us for some test drives. We wanted to enjoy the experience.

How can you use this information?

As part of your intake process identify the customer. Is the person a buyer or a shopper?

Buyers will want you to serve them quickly and efficiently. Their need is met when the acquisition is complete. They may well have something else they really want to be doing do and are ready to get on with it. A buyer wants you to include all necessary items and get to a price with immediate delivery. You increase your value to them by doing so. Start the appointment early if possible, omit any non-critical activities, and get to the recommendations and price quickly. A buyer will often pay more for something they can get now, so they can get on with their next activity.

Shoppers will want you to spend a little extra time with them. Their need is met when they feel they have had an entertaining, or learning, or whatever, experience. They want you to offer them some choices and explain the choices to them. They want you to offer them additional options, even if they don't buy them. In fact shoppers may not actually buy from you. But even if they don't they may recommend you. Shoppers will recommend you based upon the shopping experience they receive. Not necessarily by how well you match their health care needs.

Rick

 

 

 

Marketing Keys Reminder

Value Message: Why someone needs to spend money and time on hearing heath care as opposed to anything else.

Key Points of Differentiation: Once someone knows they need to spend money and time on hearing health care, why will they choose you.

The focus of your message depends upon the response you want from your target audience.

A successful message will have one or the other.

Rick

Bundling & Unbundling

Bundling talk was more time consuming than I had expected. Therefore blog posts haven't happened as I planned.

This is the first time I have had a featured topic for the week and while it was far more fun than I anticipated, it also required more time than I anticipated. I will learn.

This week we talked about bundling in general, next week we will talk about bundling for your initial visits. The focus will be on the dispensing aspect of an Audiology practice. So we will focus on how to bundle the "free" hearing test, screenings, hearing evaluations, billing, locations, batteries, discounts, set up fees, and other aspects of the first patient visit.

Hope to see you, or hear your voice, next week.

Rick