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Tuesday, April 10, 2007

Diffly - A New MacOSX Software Tool

Matt Mower has just announced the release of his first publicly available software tool for MacOSX. It’s called Diffly and is a productivity app for software programmers. Matt has a long history of developing productivity tools for niche environments. I’ve used several over the years and always found the functionality and UI to be well thought out. Diffly is the first product Matt’s released for general consumption. But since I’m not a programmer, I’m already looking forward to the next one! Congratulations, Matt. 
Pain can be a great motivator (to finish your first Mac application!)

Not the best weekend on record as I seem to have developed an ear infection which is both very painful and very uncomfortable (my jaw isn't working properly). I decided that, rather than spending the day waiting in casualty to be seen by a doctor, I would take my mind off it by debugging the problem with my first MacOSX app that has been preventing me from releasing it these last few (okay 8) weeks.

So I'm quite pleased to be able to announce Diffly my first real MacOSX application written in Objective-C using the beautiful Cocoa framework.

Diffly in action

If you're a developer, use MacOSX, and use Subversion you might want to take a look.

Posted by: Send an e-mail to Terry Frazier Terry Frazier at 10:28 AM  | Permanent Link  | Trackback URL | 
Categories: Technology, MacOS


Monday, April 9, 2007

A Clarification on Zounds Sales Strategy and Some Industry Statistics

A few weeks back I was in the office on Saturday when my phone rang. On the other end was a fellow named Jay Turner, VP of Marketing for Zounds. Like any good marketing VP, Jay had been following web traffic on Zounds and came across my blog entries. As I said previously, I have no direct relationship with the company and no one there knew who I was. Even though I have a small investment, it is as part of a limited partnership and my name appears nowhere in the Zounds' records. So Jay had been looking around my blog trying to figure out who I was and why I was interested.

We had a nice conversation and Jay offered some statistics to clarify points raised in the earlier discussion. What follows are quotes from a follow-up e-mail Jay sent me. I have not independently verified these numbers but I have no reason to doubt them. Zounds did extensive market research before launch and has an advisory board that consists of medical professionals from both the ENT and audiologist fields. Further, 2006 sales statistics published in The Hearing Review show 2.37 million hearing aids sold in the US, so Jay's number of 7%=150,000 is conservative.
Per our conversation, industry research indicates 7% of hearing aids in the US (150,000 units annually) are sold through Ear, Nose, and Throat (ENT) Physicians that employ Audiologists. They buy high-end hearing aids for $1250 wholesale from the Big 6 manufacturers and mark them up to $2500 to $4000 per aid, or 2X to 3X. This same wholesale/retail pricing is used in the independent Audiologist/Hearing Instrument Specialist (HIS) channel.

Zounds provides excellent patient care through licensed Audiologist/Hearing Instrument Specialists, the best technology, and affordable prices to fixed income seniors through Primary Care Physicians (PCPs) and ENTs. Zounds sells the product and diagnostic/fitting service at wholesale (no referral fee, no Medicare/Medicaid reiumbursement, no Stark law conflicts, etc) and the PCP/ENT marks them up to MSRP $999 per aid, making far less, but for many still appealing, mark-up than the Big 6/ENT/Audiologist/HIS business model. There is nothing illegal or unethical about Zounds distribution strategy. Yes, Zounds technology, distribution, price point, and consumer marketing will be disruptive. Unfortunately, there is a lot of misinformation and emotional reaction to Zounds' business model. Overall, Zounds is trying to provide a better product, service, and price to the millions of people who suffer from hearing loss.
So, my hypothetical assertion of paying a referral fee is misleading. Zounds sells to physicians just as all other major hearing aid suppliers.

Another point Jay made in our conversation is that 10%-15% of high-end hearing aids are returned. This is not far off the number quoted by Tom Shearman (5%-10%) for all hearing aids. I would expect return rates for $2,000-$4,000 items to be somewhat higher.

And so the experiment continues. I remain a believer in the Zounds technology and approach, but the market will decide if it's ultimately the right approach. The fact that there is a great deal of emotion and misinformation regarding both the company and the product supports my belief that this is a fundamental disruption for an industry that is ripe for change.
Posted by: Send an e-mail to Terry Frazier Terry Frazier at 4:44 PM  | Permanent Link  | Trackback URL | 
Categories: Business & Finance, Health and Fitness, Technology


Monday, April 2, 2007

What Do You Mean, I Have To Change The Toner?

Several years ago I purchased a mid-range laser printer - a Brother HL-6050DN. My work requires that I review hundreds of documents for some projects and trying to do that on a screen, no matter how big and nice, is an awful experience. So I print them. I don't know how many pages I've printed, but I've gone through dozens of cases of cheap copier paper since I bought it in mid-2004.

Today I got a warning message on the printer control panel:
"WARNING: TONER LEVEL LOW. REPLACE TONER UNIT."

Wow! I had forgotten you have to do that with laser printers. I guess I thought it would run forever like some perpetual motion machine. Good thing I got a couple of spares when I bought the printer. At this rate parts will be discontinued before I have to buy more. In fact, toner itself may become obsolete.

That's the kind of product I like to buy - works great, never breaks, and runs (nearly) forever before you have to fill it up.
Posted by: Send an e-mail to Terry Frazier Terry Frazier at 8:19 PM  | Permanent Link  | Trackback URL | 
Categories: Productivity, Technology
Terry W. Frazier
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