Alsip J

HEARING AIDS-HEARING TEST ADVERTISING

In today's Orange County Register,and the Los Angeles Times, there is an identical advertisement,although of a different size, because it is less expensive to advertise in the Times for the same dollar amount, because it has less circulation in Conservative Orange County (Despite Santa Ana) that portrays an older Gray Haired Man, who no one would recognize if his name wasn't placed next to his face. I believe Don Shula signed a contract to be the Spokesperson for SIEMENS Hearing Aids,and evidently since HearX owes MILLIONS of dollars to SIEMENS (I think their credit limit or line of credit has been raised to 50 million and doesn't have to be repaid as long as HearX buys 90% of their Hearing Aid Sales Requirement from SIEMENS...is that an incentive?) they get to use his face and "canned copy" in their ads as long as it is in conjunction with SIEMENS PRODUCTS. The ad features blurred words promoting getting your eyes tested, I guess because newsprint can't speak....yet. Maybe HearX is going to start selling eye glasses, as a lot of such combination offices do throughout the World. Eyeglasses and Hearing Aids. Make sense, especially now since a lot of People selling hearings are Doctors, of all types, and other People who pose as Doctors, or who think they are. The ad is promoting an examination of the Ear Canal by an autoscope and states "It might be that wax build-up is your only issue". Something as simple as that.I wonder if they really believe that. If so, then anybody responding to the ad should reject anything other than an ear canal examination.They invite anyone to visit their list of offices for "A private screening" promising to "Make it easy, quick-even enjoyable". I don't know how you can make a private screeing enjoyable. I have performed thousands of hearing tests and nobody ever said, or thought, (at least to my knowledge) that it was enjoyable. Although I don't think a canal examination and an extensive hearing test is a horrible or terrible experience, I have never considered it enjoyable. Using Celebrities to promote any product is nothing new, but I'm surprised they chose Don Shula. He doesn't fit the image most Hearing Aid Companies are now seeking to encourage People to buy hearing aids. Look at the guy that PHONAK is using in the July Issue of Vanity Fair. The Ad is saying that its OK to wear hearing aids if your are younger than 50 and don't have gray hair.Most States have mandated that even new born babies have their hearing tested. The babies can't object and at the time of testing probably can't see yet, so advertising to them wouldn't be effective. Babies hear upon birth but sight comes later. The Gerber Baby on food items must appeal to Babies as they are shopping. Its interesting to notice the age level that the media starts their campaigns. I guess that must think its an eductional process. Maybe the Government should start advertising Education in Baby Publications and on television. Suggesting that "Wax build-up" may be "Your only issue", while not actually deceptive, is really stretching it, and is being cute. Anyone who has been in the Hearing Aid Dispensing business for any length of time, knows its very unlikely and unusual, for a was build-up, whatever that means, to cause a hearing loss. Ear wax would have to totally block the ear canal, and be a rock-hard, substantive plug, to be responsible for a hearing loss. HearX knows that, and also knows that ear wax build-up is more prevalent in People that wear hearing aids than those that don't. If an ear canal examination reveals excessive ear wax, then a hearing test shouldn't be conducted and the client should be referred to a Medical Doctor for treatment. The Bone Conduction part of the hearing test is used to determine if ear wax is creating a hear loss problem. As long as there is the slightest opening in any ear wax build-up, the wax has no effect on hearing thresholds. The ad states that "Fully Integrated Line of Siemens Life Products" start at $1,595 , I guess they forgot to add "Each". California Law requires advertising to be more specific than that. The exact name of the product and the model number and type has to be listed. Thank God HearX has that 50 Million Dollar line of Credit from SIEMENS. Does owing a Vendor that amount of money give HearX an unfair advantage over other Siemens Dealers? Does Special Pricing give HearX an unfair advantage over other Siemens Dealers. What would the Federal Trade Commission say? Are other Siemens Dealers, who are not getting the same preferential treatment as HearX, actually subsidizing Siemens sales to HearX, and if so why would other Dealers buy Siemens Products? By showing a price of $1,595 for a Hearing Aid, HearX is announcing they don't want to do business with anyone not willing to pay AT LEAST that amount. I would love to sell Hearing Aids all day long, for $995 for a Digital Hearing Aid. It is possible that the Audiologists working for HearX complained of the psychological shock experience sustained when the typical prospect was informed of the price of the hearing aids HearX was asking, and they felt it was such a bad experience that they wanted all the People they tested and proposed to, to be forwarned of the Prices. Like a Mother informing her Virgin Daughter, what to expect on her Honeymoon Night. Actually what happens to hearing aid prospects is very similar. I guess the gist of the Don Shula ad is: That if I can do it, so can you. I trust, that in addition to being paid a very substantial fee for his endorsement, Don Shula didn't have to pay for his hearing aids from Siemens.He doesn't say. He must be wearing the CIC model, because you can't see them. I'm surprised he isn't using the hottest new buzz products, the Open Fit Models. Thats what everybody is pushing. Its nice to know Don Shula has Grandchildren. I wonder if he really can understand their speech. Maybe his Grandchildren are teens or in the twentys. The ad doesn't say. Don says his new Siements hearing aids work just like glasses for his ears. Does that mean he can now see through his ears? Maybe an Eyeglass Retailer will see his HearX and Siements ads and recruit him for their products? Go Don. Like Lee Iacocca, Don can't pass up an opportunity to make a buck. Hey Lee, what kind of hearing aids do you need?
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3 comments
Guest

The technology in Hearing Aids Ireland has advanced considerably over the past few years, just imagine what they will look like and do in the future. Hopefully everyone in the future will be able to hear.

Guest

The hearing aid market is quite dynamic; there is no arguing that. But, if Siemens/HearX wants to use a push marketing strategy I don’t see a problem with it.

I feel the author needs to use a bit of creativity rather than cynicism to compete with the "big dogs.” The author didn't get in this business because he has an affliction for ears-He got in it for the money.

The amount of money spent on trying to get to the right people is hard enough in advertising; now throw an embarrassing handicap (psychographics of hearing aid consumers) in the mix and watch the dollars dwindle away. We all know it takes money to make money.

Guest

The hearing aid market is quite dynamic. If Siemens/HearX wants to use a push marketing strategy that's fine.

I feel the author needs to use a bit of creativity rather than cynisism to compete with the "big dogs.". The author didn't get in this business because he has an affliction for ears-He got in it for the money.

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Alsip J

HEARING AIDS-MARKET SHARE EFFECTS

A recent press relase announced that SIEMENS is providing a 50 Million loan to a Company called HearUSA, which among other things, is an owner of HearX, a subsidiary operating in California. The true purpose of this financial agreement has to be to secure 90% of the Hearing Aid Sales of HearUSA, including HearX.I assume SIEMENS has to offer competitive pricing as part of the agreement.I don't know how the Shareholds of SIEMENS feel about such arrangements,and the types of problems being investigated currently in Germany regarding eithical issues for SIEMENS Coporate Management, don't bode well on how this financial agreement was arranged. It probably is being investigated as I write. Because of the tremendous Product Profit Potential, and the predicted demographics of the Prospects for the Hearing Aid Products, Senior Citizens, there seems to be a "Feeding Frenzy" in the Hearing Aid Industry to acquire Hearing Aid Offices, which as a Group, is where most Hearing Aids are sold. The mentality seems to be that by buying up all existing Practices (as Hearing Aid Businesses are being called, in an attempt to make them sound more Medical, and of course More Professional) for the purpose of dominating the Market and Price Fixing. The Current Attitude in business today, seems to be, "Don't disturb the profit margins, just disturb market share and sales patterns", In the past, New Business Entrys always entered and took over Market Share and the Industry, by price cutting. Study Crown Books,Home Depot,Best-Buy, etc. The days of building a business by providing quality products and services, with competent(English Speaking) employees,at competitive prices, that allow for an acceptable return on investment, at least in the United States, seems to be a thing of the past. The latest example is the Book Store Industry. It is my observation that as soon as the Industry, whatever it is, is taken over, and the Competition is destroyed, then the first thing that happens is that the Prices Increase, product selection decreases, quality decreases, service decreases, and everything competitive decreases. Manufacturers and Vendors, who scrambled to encourage and develop the destruction of their own industry by catering to the Big Boxes and Dominant Players, are then dictated to by the Monsters they themselves have created, and have no alternative market to turn to. The Retailers even start sourcing and Importing Products under their own Brand, further destroying the Industry. This is the Pattern the Hearing Aid Industry is taking. Smaller Hearing Aid Manufacturers are being bought up and eliminated. Retail Hearing Aid Offices are being purchased. Products, Policies,Services,Options,Alternatives, and most of all Pricing, is being dominated and controlled by 3 or 4 Dominant Players. SIEMENS is supposed to be the Largest Hearing Aid Manufacturer. What other Companies and Brands do they control? OTICON is supposed to be the Second Largest Company. What other Companies and Brands do they control? PHONAK is supposed to be the Third Largest Company. What other Companies and Brands do they control? PHONAK is buying ReSound and Beltone. Miracle-Ear is no longer a Manufacturer and is only a Marketing Company. STARKEY has to be the 4th Largest Player. What other Companies and Brands do they control? Lets start with NuEar,Audibel,MicroTech,Qualitone,Telex,etc,etc,etc, Where is the Federal Trade Commission? You don't need an MBA from Harvard or a PHD from Vanderbilt, to know what happens when a few Companies dominate an Industry. Interesting enough, even Hearing Aid Companies are out-sourcing their Products. You would think that when a product costs less than $100 to manufacture, and you can sell it for $1,000 (WHOLESALE) that you would at least keep the Manufacturing of such products in the Countries where the Products being sold. Manufacturers are racing to Third World Countries, China being the most populated, where 400 Million People earn less than a dollar a day. You can bet those People don't buy many hearing aids. And they don't. Because of all the Consolidations mentioned above, I believe there are great opportunities for Independent Hearing Aid Offices and Dispensers today more than ever. When Corporate Businesses, both Wholesale and Retail, assume they dominate and own the market, they always make a lot of basic mistakes. They always charge higher prices, provide limited products, poorer service, and possess and reflect a bad attitude. They assume you need them more than they need you, because of the lack of competition. Then Along Came Jones. In the United States, there is always somebody that recognizes an opportunity and opens a business to provide an alternative to the existing products,practices,service, and pricing. And the cycle begins all over again. Buyer Beware
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2 comments
Guest

HearX, HearUSA is awful $4,000+ for hearing aids, will never do that again, ripped off

Guest

i like ur article and it really gives an outstanding idea that is very helpful for all the people on the web

Hearing Aid

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Alsip J

HEARING AIDS - HEAR/x & DON SHULA ADVERTISING - SIEMENS HEARING AIDS

Evidently, Madison Avenue Advertising Executive are convinced, and accordingly convince their Clients, that using Famous Celebreties and Personalities in their Advertisements, is a good thing. As a Result, SIEMENS, the Largest Hearing Aid Company in the World (at this time) based on their sales, has hired Don Shula, to be their Spokesperson and Advertising Model. He is a Senior Citizen, and probably has Name Recognition, based on many marketing surverys. Although I didn't play for Don Shula, I am convinced he is one of the best Football Coaches ever, only because of his accomplishments. But just because Don Shular, endorses a product, whatever it is, doesn't mean anything. We must be a very desperate and lonely Society, Sick would be to strong a characteristic, to believe, or assume, that just because a Celerbrity, whoever they are, endorses a Product, that we should believe in the Product. Trust your Neighbor. Trust your Friend. Trust a Stranger from Church. Trust an Associate. Trust a Consumer Advocate. Trust anyone, other than a Paid Individual that endorses a Product. That isn't to say, that Don Shula, or any other Celebirty or Individual, would endorse a Product or Service, that was deceptive,dishonest,corrupt,criminal, dishonest,defective, or otherwise, unacepptable, but why take the Chance? I believe Advertising should educate the Public about the Product, Policies,Procedures,Services, and Prices. Whats wrong with that? Buyer Beware.
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Gene C Vsv

Please post any consumer advocates........

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