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Re: [IP] Preferred provider's high supply prices
In a message dated 04/12/1999 8:41:28 AM Central Daylight Time,
email @ redacted writes:
<< I'm all for buying at the best price, and in the competitive world, may
provider win. However, it would be nice to have a level playing field. For
company like ours who tries to offer a comprehensive, local diabetes
program, this mail-order arrangement means a loophole in our program. For
customers who prefer to have a local face to deal with, they don't like
someone "way off" for their personal medical needs. >>
It was good to hear another perspective on this.
Some people are willing to pay more for service. I'm willing to pay more for
something, say a piece of clothing, at a place where there are no hassles for
returns, free gift wrapping, knowledgeable sales people, etc. Skimping on
medical care is not something I care to do and would pay extra for service,
and it is always nice to have someone else tackle the insurance companies for
However, the problem comes in the way mark ups are frequently done. A 100%
markup (which appears to be common) on a high ticket item is quite different
from a lower ticket item. I have tried working with several providers on
this, offering them to make a profit but still keeping costs down. Because
some people (or rather insurance companies) are willing to pay the higher
prices they feel they will lose money in the long run if they lower their
prices so they stay high and I in turn go to the manufacturer for supplies.
Who caused it? The insurance company for paying higher prices, the provider
for charging too much or the manufacturer for not offering discounts to
resellers? Sounds to me like all three are involved.
Just a thought...
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