Costco and Hearing Aids

10 years ago

Im not so sure that you have to go far from the box here. I will bet that if she / you offered the services to the company that's IN Costco, they would refer those folks right over. They probably just want to sell them and nothing else. So to have the ability to hand over a business card and say "Her call this lady" might be a match made in heaven.

Originally Posted by CreekChub

My apologies in advance. This isn't a "How I Crushed It And Made $476 In 3 Hours" type of post.

I have a long time client who is an audiologist (hearing aid lady). Her pitch is that she takes the time to fit and tune your hearing device, is local, and is knowledgable. Her competition are "hearing aid salesmen". No service, no smile. They sell you a hearing aid and that's it.

Costco is moving in to the area, and will have a "hearing aid salesman" in-store. My client is willing to service their devices, adjust them, clean them, etc. Sort of a loss leader, in the hopes (certainty) of gaining their business down the road. She has had good luck with this sort of an offering in the past.

My question: if you're in my/her shoes, how do you get ahold of / get in front of the folks walking in to Costco for their cut-rate hearing aid (which they will likely never be happy with)? Before or after they make the purchase doesn't matter. Hearing aids are finicky devices. If yours doesn't work "just" right, your quality of life can be significantly degraded. Folks, even those on fixed incomes without much money, pay well for such a service. The CTA's are plentiful. "Wish you could hear your grandson the first time?", "Trouble hearing the doorbell?", "Can't watch TV in the same room as your wife?", that sort of thing.

She is a Social Media / Youtube / SEO client, but I can work this into the budget and wouldn't mind helping her out. Anybody have some workable, but outside-the-box thoughts?

Thanks
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CreekChub

10 years ago

Something simple and direct like that is generally my first approach, and I'll run it by her, but I doubt it will work. Costco is a corporate machine. I highly doubt they'll be interested in passing out business cards or flyers for her. I'm also pretty sure that they've got upsells to protect down the line. She offers superior service by far, but I don't imagine they care much about that.

Thanks
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savidge4

10 years ago

Originally Posted by CreekChub

Something simple and direct like that is generally my first approach, and I'll run it by her, but I doubt it will work. Costco is a corporate machine. I highly doubt they'll be interested in passing out business cards or flyers for her. I'm also pretty sure that they've got upsells to protect down the line. She offers superior service by far, but I don't imagine they care much about that.

You are going to have a hard time if it is you yourself that is placing objections. YES Costco is a corporate machine, do you think for 2 seconds that Costco the Corporate machine is getting in the hearing aid business? NO, they are leasing the space to a national chain. and if you present a salesman with a Value Added Proposition He/She will be glad to hand out your cards.

I will more than bet that the same Costco has a booth for Directv or DishNetwork, did Costco buy them out?

I personally have a Sams Club where I live that has a Directv Retailor Booth. They have a STACK of my cards. Everyone that inquires about a service call gets one of my cards. Those guys are there to sell and nothing else. They are more than happy to drop my card to rid them of the hastle of talking to a person that has a non working system while they are trying to a sell the system to new clients.

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CreekChub

10 years ago

Originally Posted by savidge4

You are going to have a hard time if it is you yourself that is placing objections. YES Costco is a corporate machine, do you think for 2 seconds that Costco the Corporate machine is getting in the hearing aid business? NO, they are leasing the space to a national chain. and if you present a salesman with a Value Added Proposition He/She will be glad to hand out your cards.

I will more than bet that the same Costco has a booth for Directv or DishNetwork, did Costco buy them out?

I personally have a Sams Club where I live that has a Directv Retailor Booth. They have a STACK of my cards. Everyone that inquires about a service call gets one of my cards. Those guys are there to sell and nothing else. They are more than happy to drop my card to rid them of the hastle of talking to a person that has a non working system while they are trying to a sell the system to new clients.

Spare me the "newbie is his own worst enemy" stuff, if you could be so kind. This isn't my first rodeo. Just the first time on this particular horse. You can bet all you want, but this isn't a Direct TV scam. Costco employees are fitting and selling hearing aids in their store. Sure, they probably buy them for pennies on the dollar, while my client is paying dimes. It isn't sales managers manning the store though, it's Costco employees. Like I said, I'll run it by my client, but I won't be surprised if a stack of business cards lasts indefinitely. It'll take a bit more than that, I'm guessing.

No worries, I'll figure it out.

Thanks
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savidge4

10 years ago

I went back and did a small bit of research, and I do apologize for speaking on a subject I apparently knew nothing about. What Costco is doing as compared to say the Sams Club in my community are 2 different things.

Originally Posted by CreekChub

Spare me the "newbie is his own worst enemy" stuff, if you could be so kind. This isn't my first rodeo. Just the first time on this particular horse. You can bet all you want, but this isn't a Direct TV scam. Costco employees are fitting and selling hearing aids in their store. Sure, they probably buy them for pennies on the dollar, while my client is paying dimes. It isn't sales managers manning the store though, it's Costco employees. Like I said, I'll run it by my client, but I won't be surprised if a stack of business cards lasts indefinitely. It'll take a bit more than that, I'm guessing.

No worries, I'll figure it out.

Thanks
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CreekChub

10 years ago

Originally Posted by savidge4

I went back and did a small bit of research, and I do apologize for speaking on a subject I apparently knew nothing about. What Costco is doing as compared to say the Sams Club in my community are 2 different things.

Gotcha. No worries, and thanks all for the input. She isn't concerned about a competitor, so much as looking for a way to use them to her advantage. It's a good thing.

Thanks

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Peter Lessard

10 years ago

This is a case where I believe this type of competition will be good.

Lets face it. People do NOT go to Costco with the thought of buying a hearing aid.
I believe this will just create more interest. I would want to rank for "costco hearing aids" for when these people get home and start researching. I am sure MANY will not buy on the spot but start thinking about it and researching.

You can also rest assured later they will be looking at solving problems with them.

Create local ads that read "We fix Costco hearing aids"
Then port them in to the sales funnel. ;-)
If their hearing aids are crap now is the time to explain why.

I also hear what you are saying (pardon the pun) of Costco not sending folks her way BUT the hearing aid salesman is just a human being that will likely start to get people coming back saying "how do I fix this thing". The salesperson may be happy to say call this lady she can help.

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AmericanMuscleTA

10 years ago

I've been banned from all Costcos (looong story), but that's besides the point.

Anywho, why not make up flyers and have the salesman at Costco pass them out when they sell a pair of hearing aids (just like the business card idea above)? They can include it in every box/bag/whatever those darned things come in. Just be sure it includes some kind of offer and call-to-action.

Find out how often hearing aids need to be readjusted and cleaned, and offer that on the flyer. Like, "Get Your FREE Tune-Up and Cleaning of Your Hearing Aids within 3 Weeks Of Your Purchase... blah blah blah."

Thanks
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DABK

10 years ago

I'd move my shop directly across the street from the main entrance to Costco. I'd put in small letters my business name, in big letters my logo (We fix Costco-created hearing aid problems).

Costco's advantage is bulk. Buying 8 lbs of something for the price of 6 (individually bought) is awesome. Costo's advantage doesn't work with eye glasses, mobile phones, lap tops, hearing aids. People just don't buy a dozen of those.

Costco will have lower prices, because they carry less known names / inferior quality products. Exams are going to be cheaper. Don't know if quality there will be inferior.

But you guys can position yourself as the Anti-Costco hearing aid people, the quality.

And you advertise to the people who go in/come out of Costco. Partner with businesses located across the street from Costco. Or in local papers... Church bulletins. Take a pastor out to lunch, talk him into letting you help his flock by donating batteries to x number of them.... Or checking their hearing aid... Or cleaning it... (As you can see, I don't know much about hearing aids... I'm suggesting finding something that costs you little yet is useful to people and will get them to come in).

Only catch, they have to come to your store to get the batteries.

Buy lists of people over 60 and whatever other criteria your ideal customer has and send them direct mail.

Thanks
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CreekChub

10 years ago

Originally Posted by DABK

I'd move my shop directly across the street from the main entrance to Costco. I'd put in small letters my business name, in big letters my logo (We fix Costco-created hearing aid problems).

Costco's advantage is bulk. Buying 8 lbs of something for the price of 6 (individually bought) is awesome. Costo's advantage doesn't work with eye glasses, mobile phones, lap tops, hearing aids. People just don't buy a dozen of those.

Costco will have lower prices, because they carry less known names / inferior quality products. Exams are going to be cheaper. Don't know if quality there will be inferior.

But you guys can position yourself as the Anti-Costco hearing aid people, the quality.

And you advertise to the people who go in/come out of Costco. Partner with businesses located across the street from Costco. Or in local papers... Church bulletins. Take a pastor out to lunch, talk him into letting you help his flock by donating batteries to x number of them.... Or checking their hearing aid... Or cleaning it... (As you can see, I don't know much about hearing aids... I'm suggesting finding something that costs you little yet is useful to people and will get them to come in).

Only catch, they have to come to your store to get the batteries.

Buy lists of people over 60 and whatever other criteria your ideal customer has and send them direct mail.

So, you have a brick and mortar location that you've been in for better than 10 years, but you would move "directly across the street from Costco"? I'm thinking not. Costco isn't selling dozens of hearing aids to any one customer. It's a niche market, and they've found their way in. There is obviously money on the table.

If you read the initial post, this isn't me. It's a client of mine. I have already "cornered the market" with respect to the internet, and her church is sewn up nicely with a bow on it. I'm interested in ideas, specifically with respect to how I might help her cash in on this new Costco store. She's paying me upwards of $1500 / mo., so I figured I may as well give it a solid college try.

Thanks
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DWolfe

10 years ago

I'm wondering if Costco is using the Hearing Aides to get the battery sales. Hearing aid batteries last a week if worn all day. Is there a hook in there that they could some how tie in with her church ?

Thanks
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CreekChub

10 years ago

Originally Posted by DWolfe

I'm wondering if Costco is using the Hearing Aides to get the battery sales. Hearing aid batteries last a week if worn all day. Is there a hook in there that they could some how tie in with her church ?

Considered that, but it just isn't the case. Hearing aid batteries last 6 months, give or take. The aids themselves are completely custom though. They need to be adjusted and fit to work correctly. Hearing is subjective though, which is how "Miracle Ear" and Costco can get away with selling the product and not doing a very good job of making sure that they work well. Gramma can hear better than she did before, so it must be a good thing. Never mind that with a half hour appointment she can hear better than she did at 18...

Thanks
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DWolfe

10 years ago

Originally Posted by CreekChub

Considered that, but it just isn't the case. Hearing aid batteries last 6 months, give or take..

My 312 hearing Aid Battery's use to lasted 7-10 days Max unless the technology changed (been few years since I last used them) They went dead in a little over a week of straight 8-10 hours of use.

Thanks
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CreekChub

10 years ago

Originally Posted by DWolfe

My 312 hearing Aid Battery's use to lasted 7-10 days Max unless the technology changed (been few years since I last used them) They went dead in a little over a week of straight 8-10 hours of use.

Times have changed. Siemens and GN Resound among others fit the bill for what I'm talking about. Look it up. It's a brave new world...

Thanks

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DABK

10 years ago

You're welcome!

Originally Posted by CreekChub

So, you have a brick and mortar location that you've been in for better than 10 years, but you would move "directly across the street from Costco"? I'm thinking not. Costco isn't selling dozens of hearing aids to any one customer. It's a niche market, and they've found their way in. There is obviously money on the table.

If you read the initial post, this isn't me. It's a client of mine. I have already "cornered the market" with respect to the internet, and her church is sewn up nicely with a bow on it. I'm interested in ideas, specifically with respect to how I might help her cash in on this new Costco store. She's paying me upwards of $1500 / mo., so I figured I may as well give it a solid college try.

Thanks
1 reply

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CreekChub 10 years ago

Uhhh, thanks?
- Thanks
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DABK

9 years ago

I read desperation you your post.

Even without desperation, moving a brick and mortar shop would be something I'd consider. Because I moved a brick and mortar shop to a new location and it did get them more revenue and profits. (True it was an accountant's office and the move had nothing to do with Costco.)

What I hoped you'd take from my post is that you need to do 2 things:

Figure out how Costco positions its hearing aid department and how they run it, how they interact with customers and advertise yourself as a different, better, alternative.

Be where Costco's customers are. Many methods for this, from hiring somebody to dress like a hearing aid and pass out flyers across the street from Costco to internet, to etc.

Costco requires a membership and its greatest advantage is selling in big packages which allows it to see a lot of things for less than other stores. But not everything at Costco is cheaper than at other stores. I don't know about hearing aids. The one I shop at doesn't sell hearing aids.

Because of that, Costco's great for families, especially large ones, not so good for people who live alone or there's only 2 of them. It's also not good for people who live in small places.

You could target older people who live in small apartments. They might be less inclined to go to Costco. I'm related to a few who never do. Because they don't need that much oatmeal, that much pasta sauce... It will spoil in their pantry.

For the others, you need to craft messages that show you're better, or at least different from Costco, and get those messages in front of the Costco shoppers either by having them by Costco or in papers, sites, etc. Costco shoppers interact with.

Originally Posted by CreekChub

So, you have a brick and mortar location that you've been in for better than 10 years, but you would move "directly across the street from Costco"? I'm thinking not. Costco isn't selling dozens of hearing aids to any one customer. It's a niche market, and they've found their way in. There is obviously money on the table.

If you read the initial post, this isn't me. It's a client of mine. I have already "cornered the market" with respect to the internet, and her church is sewn up nicely with a bow on it. I'm interested in ideas, specifically with respect to how I might help her cash in on this new Costco store. She's paying me upwards of $1500 / mo., so I figured I may as well give it a solid college try.

Thanks

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bizgrower

10 years ago

Historically, if she can get anecdotal or empirical data from other audiologists, what has happened when Costco entered the market in their towns?

Wal-Mart's eyeglasses space is worked by Wal-Mart employees and managed by a board qualified eye doc. The local one I'm thinking of, the doc used to have his own practice but joined Wal-Mart when they came into town. I suspect Costco is similar.

Do they have an audiologist on board at this Costco? If not, that's one advantage she has. Certification and training.

Frankly, if I were her, I would not be too worried ( don't let her get what Jason calls head trash). Just work and re-work her existing client base for repeat and referral business, and go after new business that does not shop at Costco.

Keep an eye on Costco and how they advertise and market... Listen to what their customers are saying and figure out where she can help. Study them and then offer goods, brands, and services that they do not and that are superior.

Worse comes to worse, she could manage that department.

Thanks

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earman

10 years ago

I found this whole thread Very Amusing.
Best laugh I've all week. The only one that knows what he is talking about is DWolfe.
All the others know nothing about this.I am an Audiologist and I Do Not work for Costco

Most of the people in the hearing aid department of Costco are AUDIOLOGIST, licensed by the state they sell in and go to continuing education classes each year to maintain their license. The non audiologist are state licensed hearing aid specialists requiring state exams and continuing education also.

All the manufactures of the hearing aids provide training to them to assure they have all the technical knowledge to program the hearing aids.

Costco sell only top of the line hearing aids from the top manufactures at a cost lower than I can buy them at wholesale.

Costco is the largest retailer of hearing aids in the USA, it is not sub contracted out and an Audiologist runs this department.

Costco would NEVER let you hand out cards or flyers in there stores, would you let someone do that in a store you owned?

I've had to close two part time offices I had in the last year because of Costco selling the same hearing aids cheaper than I can buy them.

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bizgrower

10 years ago

@Earman

Well, Mr, Man of Few Posts and Fewer Thanked posts, your first paragraph is unnecessarily rude.
In the future, please just come in and be helpful and constructive. More flies with honey...

Thanks

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earman

10 years ago

bizgrower,
You are right
Sorry about that, had a bad day and I shouldn't have carried it over to the Forum.
Thank you

[ 1 ] Thanks
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hometutor 10 years ago

I've spent over 20 years in the hearing aid industry before going self-employed as an in home computer tutor and virus removal specialist here in Honolulu Hawaii. Costco just sells hearing aids, any adjustments whatsoever other than cleaning wax out of the aids they get sent back to the manufacturer for repair and the patient is without his/her aids for about two weeks.

The service is what should attract. Also, last time I checked these guys were on salary. They make the same amount whether they sell hearing aids or not. Therefore you might want to try speaking directly with the hearing instrument specialist in Costco's Hearing Center (little kiosk at our Costco).

Rick
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bizgrower

10 years ago

She's really concerned with the Costco or Costcos in her neighborhood.
Get in them and see if there are opportunities to dovetail and refer or not.

Thanks

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Jonr1

9 years ago

Dear Creekchub, first of all I am a licensed hearing practitioner who sells hearing aids. In order to do so, I and your audiologist friend are required to pass the SAME state board exam. Her main problem is also my problem in that hearing aids are vastly overpriced for those who need them, so good job Costco and SAMs. Essentially, our prices will be forced to meet the market. But she is a licensed audiologist and that says a lot. She needs to speak to the heart of her clients, educating them of the need to treat hearing loss as important as the loss of any other sense...and that she especially is trained for diagnosis. By providing humble, caring, service, she will build her business. She may need to lower her prices somewhat to get people in the door, but once in, allow potential clients to wear a pair of the better aids for a fourteen day risk free trial. Just take a copy of their ID and credit card and let them know that at the end of the fourteen days they will have another sixteen day trial period but to continue the trial will require a small deposit. Of course the client will be carefully counseled after 3 days, 1 week, and at the end of the second week, with adjustments made if need be. Costco of SAMS can't touch this service.

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Patrick Christoph

9 years ago

I suggest she begin offering informational seminars as an EXPERT at organizations that have a large number of seniors as well as ast living facilities. No direct sales so they will let her in. Just info about cleaning adjusting, whatever it is and building her list.

Before long she will be the trusted advocate and positioned as the "go to" girl for hearing aids. This will be approximately one gillion (spelling?) times more cost effective than brick and mortar and all the marketing that would be necessary to bring customers in.

Also I can confirm the others for Costco. The arrangement has has the tech's school being paid by Costco and they agree to work for the company exclusively for set time period. It's locked up and rolling out nationally.

Thanks

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NewParadigm

9 years ago

my father got his at costco last year. many that age sure arent doing web searches for hearing aids even though he does use the web for some stuff. I'm sure web use will improve as we get new crops of elderly who have been more web users in their lives.

I'd go direct mail targeting elderly age groups. "1 free cleaning/adjustment/hearing checkup" etc.... Big print, simple, no fine print. use your local number, local address not an 800 number.

give a hearing aid buyers seminar at assisted living homes, senior centers etc...

also, team up with eye docs to co-market to the same people. almost all of em have glasses.

Thanks

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Costco and Hearing Aids

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