Question
I was looking at the option of using a private label service for the hearing aids I dispense. From a marketing standpoint, does this really make sense? Or is it better to leave the "well known" brand on the device. I put well known in quotes, since most of my patients do not know any of the hearing aid brands to begin with. At the same time, I see some of the hearing aid manufacturers taking out local and national ad campaigns.
Answer
One could argue that when asked, consumers can in fact identify two well know "brands" of hearing aids, those most often being Beltone and Miracle Ear. Both of these companies did a very good job establishing their brands in the American market. Great Nordic now owns the Beltone brand plus GN ReSound, GN Otometrics, and Interton; and Amplifon now owns the Miracle Ear brand in addition to the Sonus brand. As we all know, when asked about batteries, many consumers will mention that bunny that just keeps on going (Energizer).
There is no doubt that "branding" is big in America and in fact "branding" can have a positive impact on business, especially when individual businesses unite under one common brand. For example, Ace Hardware independent stores have managed to survive even with the opening of mass Lowes and Home Depots nationally, whereas most other independent hardware stores have closed. FTD, the brand of independent florists, has flourished for almost 100 years, even during the consolidation of the floral industry.
Many industries, including hearing aid manufacturing have taken note of the power of branding and have stepped up their direct consumer marketing to establish their name and "brand" in consumer's minds. Some manufacturers have also "partnered" with battery manufacturers, in essence "co-branding" both the hearing aids and batteries. If I were a manufacturer of hearing aids or batteries, I too would want consumers requesting my brand; however, although smart for the manufacturer, that strategy directs the consumer to place the transactional value on the product (hearing aids) rather than the expertise of the provider, making hearing care a commodity transaction rather than a health care decision. One must remember that all manufacturer brands are made available to any hearing care provider in any market, which makes sense because manufacturers are in the business to sell hearing aids, not to educate, promote, or create consumer demand exclusively for audiology care.
At its most fundamental level, private labeling "products" is an effective way to counter the "price-shopping" mentality commodity purchasers often possess. However, there is a broader and more compelling opportunity associated with private labeling hearing aids. Private labeling hearing aids under a national brand, such as AuDNet, that utilizes a national private label to specifically promote and showcase "audiology care", and that contracts with multiple manufacturers of hearing aids offers many advantages. With time and marketing, this brand will be established in consumer's minds as the source of professional audiology care, in essence identifying where "THE Hearing Experts" are located. And, by contracting with multiple vendors, audiologist's product choices under one private label are expanded, with the labeling now extending the message that the transaction's value includes the expertise of the provider, not only the technology of the product.
Most audiologists would prefer his or her patients come to the office expecting that the audiologist will recommend what is best for each patient versus asking for a specific manufacturer brand. Patients must know and trust that the audiologist is the best qualified professional to diagnose hearing loss and to select and fit hearing aids. Private labeling can be used to promote this understanding.
I personally first private labeled hearing aids in the 1980s. The benefits were many and included:
- Elimination of price shopping via standard manufacturer name (brand) since my competition could not purchase the private label "brand".
- Multiple vendors' products (hearing aids and batteries) were available under one common name (brand) that could be used consistently throughout all marketing materials.
- Flexibility to change manufacturers as needed or desired, while continuing to promote and sell the same "brand".
- Separating my practice from my competition that sold the same manufacturer "product or brand" allowing me to put the focus on my professional services and solving patient problems versus on the products.
- Utilizing a national private label (brand) provided greater scope and synergy than could be achieved locally.
- Exclusivity with the private label such that no other audiologist or dispenser in my market area could be associated with or dispense the private labeled brand increasing the effectiveness of my marketing.
Private labeling and branding are very powerful business tools, especially if the brand identifies the image the audiologist wants to portray. Branding takes time, but with a consistent national effort, a brand will be recognized and demanded. With the increasing patient demographic and need to distinguish audiology care as something unique, audiologists should lessen their dependency on manufacturers for marketing and business support services and create or support a brand that promotes an audiologist's professional uniqueness and care rather than a manufacturer's product.
Kathy Foltner, AuD, is CEO of AuDNet, Inc. She also teaches courses in Practice Management and Basic Business at Rush University Medical Center and PCO. Dr. Foltner can be reached at kfoltner@aud-net.com or 312-593-1787. To learn more about AuDNet visit www.HowToHear.com, or www.NowIHear.com or visit the AuDNet Web Channel on Audiology Online