Daniel Peer
Monash University
Gitanjali Bedi
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Hearing Choices utilises a multi-dimensional trade model, in which strategic partnerships are an essential component. In order to enable customers to access discounted and reasonably-priced hearing aids, Hearing Choices relies on the honesty and integrity of audiologist partners/suppliers. When a consumer acquires Hearing Aids through Hearing Choices, they will be able to access the stock retained by Hearing Choices “8-10 [local] suppliers” (audiologists) at a lower rate and thus obtain “price points” which are “much cheaper “and more competitive “than the rest of the market”.
Essentially, Hearing Choices has the ability to access identical stock (hearing aids) and then distribute these products at lower prices, due to the design and functionality of their evolving eco-system. Thus, the innovation is prevalent in the customer experience and output price.
Essentially, Hearing Choices performs an intermediate function. They are positioned as a middle-man, between suppliers and consumers. Hearing Choices provides suppliers/audiologists with an increased volume of sales, and customers with discounted (more affordable) hearing aids.
Ultimately, Hearing Choices enables a product which is essential to so many (i.e. the ageing population and part-deaf) more accessible to the entire community - achieving the SDG's of 'reduced inequalities' and 'responsible consumption and production'.
Founding partners Korbl and Szental were both working in separate corporate backgrounds prior to opening their business. These two close childhood friends, were discussing their grandparents' recent purchase of hearing aids. Korbl and Szental’s grandparents had both paid between “ten to thirteen thousand dollars for [a] pair” of hearing aids. Both parties then realised that they had an opportunity to sell an identical product for “significantly cheaper”. Although this would mean “less margin”, their aim would be to compete on “volume”, quantity and service.
Furthermore, it was perceived by both partners that there was a substantially-sized market to tap into, consisting of a noteworthy population segment. This segment included; the “ageing population”, large numbers of “people going deaf” and a “pension market” of consumers. Samuel Kagan was the first employee to join - around 6 months in. As his grandparents had also paid an inflated price for hearing aids, Kagan shared the passion of the founding partners, hence his current role as ‘National Sales Manager’. Ultimately, all 3 senior members have a unanimous goal to make hearing aids more affordable for Australian consumers in need.
Since establishing the business in 2016, prices have been “dropping” in the Hearing Aid industry - indicating that audiologists and manufacturers selling stock on-site, have had to become more competitive. Thus, Hearing Choices have driven down prices, making hearing aids more affordable for consumers.
Through Hearing Choices “buck[ing] the trend” of just “grab[bing] cash and run[ning]” after the sale, more hearing aid traders are now focusing more on the quality of their service and the longevity of their client relationships. For instance, the unique “hearing success manager” role which Hearing Choices has implemented (approximately 7 currently employed) acts as a quality control measure and assesses the overall experience of clients, even post-purchase. This has placed increasing pressure on competitors to improve their service standards.
Considering that Hearing Choices are resourced to provide people with a “platform to acquire the hearing aid they’re [already] looking for at a lower rate”, this constitutes a distinct advantage over competitors, such as a number of local chains. Ultimately, the low-cost model enables Hearing Choices to compete on volume and attract a greater number of consumers, as they have a genuine opportunity to save noteworthy amounts of money when acquiring hearing aids.
Hearing Choices have successfully revolutionised the hearing aid market. Consumers acquiring hearing aids are now able to save money, make an informed and educated purchase decision, and have issues/concerns rectified post-purchase (as part of the hearing success manager’s role). Therefore, the sustainable development goal (SDG) of achieving ‘reduced inequalities’ (Neshovski, 2018) is relevant. As an overpriced good, hearing aids are not accessible to all members of our society that may need them. For instance, not all elderly and deaf members of the community will be able to afford this premium good. Thus, reducing the cost of this product will make it more accessible to the community and reduce this area of disparity!
The output and service experience offered by Hearing Choices aides the SDG of ‘responsible consumption and production’ (Neshovski, 2018). As more members of the Australian community now have the benefit of being able to afford hearing aids, a number of issues associated with old age and cognitive difficulties will be alleviated and minimised. Furthermore, consumers are now more likely to make an informed purchase decision. Due to the “end-to-end” service on offer and “transparency” in communicating relevant and useful content, consumers are more educated and informed. For instance, Hearing Choices prepare an annual “buyers guide” to ensure that the general public are educated on the “benefits” of the products they are considering acquiring. This initiative contributes to the Hearing Choices vision of “being a friend in the industry”, a major source of competitive advantage and a brilliant point of difference!
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Samuel Kagan, National Sales Manager
Having commenced operations three years ago, Noam Korbl and Akiva Szental initiated their start-up to challenge traditional models of selling Hearing Aids to consumers and also adopted a niche approach to servicing customers needs. Hearing Choices manage the client relationship, even after the purchase has occurred. This is to ensure a superior service and point of difference in the marketplace. Furthermore, Hearing Choices have established a position in the market as a reputable “online business”, performing an intermediate function in the hearing aid acquisition process. On the contrary, the majority of entities selling hearing aids are “manufacturer owned clinics”.