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Category: Gross Profit

Do High Profits Stymie Innovation and Swell Prices? Unsticking Adam Smith’s Hand

Holly Hosford-Dunn 1 Comment Audiology / Barriers to entry and exit / Brian Taylor AuD / Earnings before interest tax depreciation and amortization / EBITDA / Gross Margin / Gross Profit / Pre-tax profit / Price Maker / Pricing

“Signal & Noise” is a bimonthly column by Brian Taylor, AuD.   Profits are an essential part of a free enterprise system. They provide employees and their families with an income, give shareholders a return, foster innovation and signal where capital needs to be invested in order to improve or grow a business.   Profit…

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http://en.wikipedia.org/wiki/Philip_Sidney

With a Tale, Forsooth, Northey Cameth Unto Us

Holly Hosford-Dunn 1 Comment 8 Red Flags / Anchor Price / Audio Devices / Audiology / Big 6 / Bundling / Class 1 Medical Device / Competitive Market / Consumerism / Costco / disruptive Innovation / disruptive technology / Ear Machine / Economic Sectors / Economics / FDA / Government Regulation / Gross Margin / Gross Profit / Gross Revenue / Hearing Aid Final Rule / Hearing Aid Manufacturers / Hearing aids / Hearing Apps / Hearing healthcare / Internet hearing aid sales / Medical Evaluation Requirement / Over-the-counter hearing aid / Personal Sound Amplification Product / Pricing / PSAP / Purchasing Decision / Regulated hearing healthcare / Retail / retail markup / Sector 44-Retail Trade / Sector 62-Health Care / Stakeholders / State Licensure / Substitute Goods / Supply Side / Supply Side Shocks / Technology / Tom J Northey / Utility / Wayne Staab PhD / Wholesale / Willingness to Pay / Willingness to Sell

The Tom Northey series concludes today, wrapping up his 2000 treatise forecasting the future of our profession.1 He foresaw systematic changes headed straight at us and anticipated questions and issues that would rain down upon us.   Northey predicted a world of Audiology survivors and losers,  advised Audiologists to look beyond hearing aids for survival strategies, and gave Audiologists common-sense recommendations which we…

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I’ll Take That Bet and Raise You

Holly Hosford-Dunn Accounting Cost / Anchor Price / anchoring bias / Audiology / Bundling / Cost / Economics / Ethics / Gross Margin / Gross Profit / Harm Principle / Hearing Aid Research Lab (HARL) / Hearing aids / Hearing healthcare / Hearing Review / Karl Strom / Marginal Cost / MarkeTrak / Nominal value / Operating Profit / Personal Sound Amplification Product / PhD / Price / Pricing / profit margin percentage / PSAP / Retail / retail markup / SADL / self-dealing / Variable Cost / Wholesale

Our profession was treated last week to a timely and balanced discussion of unbundling by Robyn Cox PhD.  She is one of audiology’s most reasoned thinkers, test creator extraordinaire, talented researcher, and a nice person to boot.   Dr. Cox addressed concerns being raised in policy-making circles that traditional hearing aid dispensing models are pricing many…

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Pumpkin Pie with missing slice by Mark Kelly, Heartspring.net © 2012

Private Sector Hearing Aid Costs and Markup

Holly Hosford-Dunn Audiology / Bundling / Cost / factors of production / Fixed Cost / Gross Margin / Gross Profit / Gross Revenue / Health insurance / Hearing Aid Advertising / Hearing Aid Manufacturers / Hearing aids / Hearing healthcare / Internet hearing aid sales / Labor / labor force / Practice Management / Price / Pricing / Profit & Loss (P&L) / Purchasing Decision / Purchasing Poweer / Rational Behavior / Retail / retail markup / Stakeholders / Variable Cost

“The success of the final product of services and hearing aid is dependent much more upon our services than it is upon the product. ”  Catherine Palmer PhD  Audiologists and licensed practitioners believe those words, based on years of experience with patients.  That’s why most of us do what we do and charge what we…

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https://www.google.com/search?q=pictures+of+markup&espv=210&es_sm=122&tbm=isch&tbo=u&source=univ&sa=X&ei=nVDgUr-fLOSMyQGWrYGIBA&ved=0CCkQsAQ&biw=1366&bih=643#facrc=_&imgdii=_&imgrc=sxNf5bc6y_uRNM%253A%3BjWB6nOfOC7EagM%3Bhttp%253A%252F%252Fcdn2.hubspot.net%252Fhub%252F302299%252Ffile-299332856-jpg%252Flayout%252Fmarkup.jpg%3Bhttp%253A%252F%252Fwww.kellyelectricalcontractors.com%252Fblog%252Fwhat-are-the-hidden-fees-charged-by-electrical-contractors%3B372%3B300

Markup Is an Abused and Misunderstood Term

Holly Hosford-Dunn 1 Comment Anchor Price / Audiology / Classical Economics / Competitive Market / Cost / Demand / Economics / Fixed Cost / Gross Profit / Gross Revenue / Hearing aids / Hearing healthcare / Marginal Cost / market growth / Pricing / retail markup / Supply Curve / Utilization rates / Variable Cost / Willingness to Sell

Last week’s post concluded that hearing aid markup is “roughly keystone: 2x, not the ‘exorbitant’ 5x or even higher markup claimed on the Internet.”  The conclusion was based on supporting, albeit sparse, data, which is more than can be said for the 5x claim reproduced in Figure 1.  Besides, talking about markup as a multiple is misleading and…

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