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Resmed imposes "floor" pricing on Canadian Online suppliers
#1
Angry 
Resmed imposes "floor" pricing on Canadian Online suppliers
It appears that Resmed has extended its minimum pricing rules to its Canadian suppliers.  I think these rules were already in place for US suppliers. This has resulted in significant increases for Canadian customers.  I think most Canadian suppliers do not ship to the states (probably to maintain its lower prices on Resmed products).  As an example I purchased an Airsense 10 autoset, complete with climateline tubing and humidifier for less than 600.00 $C from supplier 34 last year.  It is now 1200.00 $C.  I have also recently purchased two P30i starter masks for about 105.00 $C each from supplier 32 (now 150.00 $C each)  One $C = .75 $US.
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#2
RE: Resmed imposes "floor" pricing on Canadian Online suppliers
Sounds like Canada needs stricter anti-price-fixing legislation. The US needs it, too.
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#3
RE: Resmed imposes "floor" pricing on Canadian Online suppliers
We have observed prices of auto CPAPs from both Philips and Resmed, evolve from less than $400 a couple years ago, to well over $600 USD, even on the gray markets. The ability of Resmed and Philips to enforce its minimum advertised price policy and eliminate sales outside of the DME network is impressive. Sales used to commonly occur online at Amazon and Ebay, and those have evaporated. Even outlets like Supplier #33 that used to sell on Amazon are now having to price within $100 of MSRP. It's definitely getting harder to find a deal.
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#4
RE: Resmed imposes "floor" pricing on Canadian Online suppliers
It appears to me that many vendors cry crocodile tears as enforced pricing reduces competition and preserves their healthy margins. They maintain their levels of pricing because most devices are paid for or reimbursed by insurance.

One basic rule:

It never hurts to ask for a discount, free shipping, no taxes (they pay the taxes), or freebies (non-branded supplies or even branded masks) which lowers the overall cost of acquisition. Since all things are equal, you can use that to your advantage as the vendors often need to sell a specific number of units to remain a top-tier authorized vendor. Less profit but higher unit sales.
"The object in life is not to be on the side of the majority, but to escape finding oneself in the ranks of the insane." -- Marcus Aurelius
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#5
RE: Resmed imposes "floor" pricing on Canadian Online suppliers
[Image: homervs-the18thamendment2.png]

"Hey, federal antitrust regulator, I'd like to make you an offer you can't refuse."
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#6
RE: Resmed imposes "floor" pricing on Canadian Online suppliers
At least in our province we only have to copay $500.00 CAD which is still reasonable for most. This amount is was instituted last year, before it was 100% covered by the province. Even with the increase on ResMed machines we would still be subject to the $500.00 fee with an exception stated below.

The most frustrating thing is our province has contracted two DMEs to provide this service and since this amount is tolerable to my insurance I am stuck with either two when it comes to the machine. It is easier for them to pay out when the province covers the rest. I did enquire about purchasing a machine online and claiming it and they said no I must apply provincially first and then and only then would they consider payment.

The most annoying thing was we just replaced my wife's machine and they were offering her the same machine as mine and I asked if we could get the ResMed for her and the DME jacked the price up to $625.00 which was both insulting and insane as there should not be a change of coverage. I personally would've pushed for it but my wife was content in just getting a machine and opted for the same as mine. I can almost bet that our insurance would've only covered the $500.00 as they would flip it back and say the copay is what we should be covered and anything else is extraneous and on us.

I suspect that the ResMed was getting friction from the DMEs and ResMed responded in kind. It is no different than the Big Three auto makers in the United States ordering the dealerships from selling vehicles directly to Canadians for export under threat of dealers losing their franchises. ResMed's move in this direction is similar as a supplier in the U.S. can not ship machines outside of the U.S. Now they are massaging the prices here in Canada which is frustrating as it is a good product and they know it.

It's sad when it comes down to not being altruistic in providing service but how much a threshold there is on the users ability to pay.
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#7
RE: Resmed imposes "floor" pricing on Canadian Online suppliers
This company has got to be making more money than they know what to do with. I don't understand why they would think they need to do this.
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#8
RE: Resmed imposes "floor" pricing on Canadian Online suppliers
(09-21-2019, 09:41 AM)Broomstick Wrote: This company has got to be making more money than they know what to do with. I don't understand why they would think they need to do this.

I firmly believe it has all the markings of the Canadian DMEs (brick and mortar) complaining of losing sales to  the online sites.  No doubt that ResMed is also taking advantage of the situation.  It doesn't help that they are also offloading the costs over to the insurance which will bring on higher premiums.

When you have DMEs in various provinces where machines are not covered by the province charging up to $2400.00 it can get very prohibitive.  This really does force those who don't have insurance to shop around.  The new pricing will not only hurt a few financially there will be those will chose to suffer.

I really have to question the markup when a lot these online suppliers were doing fine at the prices that they were promoting.  Nothing against the online sellers just that ResMed is demonstrating corporate greed.
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#9
RE: Resmed imposes "floor" pricing on Canadian Online suppliers
(09-21-2019, 10:04 AM)elwoodpdowd Wrote:
(09-21-2019, 09:41 AM)Broomstick Wrote: This company has got to be making more money than they know what to do with. I don't understand why they would think they need to do this.

I firmly believe it has all the markings of the Canadian DMEs (brick and mortar) complaining of losing sales to  the online sites.  No doubt that ResMed is also taking advantage of the situation.  It doesn't help that they are also offloading the costs over to the insurance which will bring on higher premiums.

When you have DMEs in various provinces where machines are not covered by the province charging up to $2400.00 it can get very prohibitive.  This really does force those who don't have insurance to shop around.  The new pricing will not only hurt a few financially there will be those will chose to suffer.

I really have to question the markup when a lot these online suppliers were doing fine at the prices that they were promoting.  Nothing against the online sellers just that ResMed is demonstrating corporate greed.

So basically...

[Image: birds.png]
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#10
RE: Resmed imposes "floor" pricing on Canadian Online suppliers
(09-21-2019, 10:31 AM)Broomstick Wrote: So basically...

[Image: birds.png]

YEP!!!! Too-funny
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