One more opinion. It is also important to consider why the manufacturer
sells the product for such a high price.
We can all relate to the lemonade stand. Just substitute the words
Hearing Aids for the word lemonade Im going to start my own company
making lemonade. I have done my demographic studies, marketing plan and
business plan, have financing through multiple stock investors. My stand
looks nice and is free of cross contamination. I am purchasing a certain
amount of powder, a certain amount of sweetener, and a certain amount of
water. In order to break even, I have to sell so many glasses of
lemonade, at the market value of 25 cents per glass. Business is going
good. Im starting to get referrals, regular customers and noticing a
little profit. Bad news, another lemonade stand opens up on the next
block. They are starting to eat into my profits.
I have some options to consider. I can lower my prices and try to win
back my customers at the sacrifice of the standard of living I have grown
accustomed to. My stock holders dont think I should do that. Profits
will start to hurt, and I will lose investors.
I can hire my sisters boyfriend Dave to go over and beat up the kid who
is competing. My lawyer doesnt think thats a good idea.
I can commit to providing the best possible lemonade in the world.
Hmmm...good idea, but it costs money. How do I know people will want the
best lemonade in the world? Sounds risky, but I am a risk taker. I first
have to hire a research and development team to come up with the magical
ingredients. Once they have created a world class lemonade, I have to
hire and attorney to patent and protect the ingredients. I need a
marketing department to get the word out and prove to consumers that this
is a great beverage. The government is wanting to punish me for hiring
these people, so they slap on some tax to the paychecks I give these
people. Insurance companies want some money in case a consumer has an
allergic reaction to my lemonade. All of these people cant work at my
lemonade stand, so I have to find a bigger stand, which is more money.
Now stock holders are concerned.
The bottom line is, I have to raise my prices in order to make the best
possible lemonade possible. You dont have to buy it! But if you do, you
will know that that is the best lemonade you can buy.
You are not buying just a hearing aid. You are buying the whole process
that is part of that hearing aid. The hearing aid is only part of your
That should do it!