Audicus

Audicus is an online hearing aid company based in Manhattan, NY. They are an e-commerce startup offering lower-priced, high-quality hearing aids by eliminating intermediaries.
History
Audicus was launched by Founder/ CEO Patrick Freuler when he spotted a need in the hearing aid market for a cheap, but still reliable and high-tech, alternative. Typical hearing aids on the market go for $1,600, $2,000 per ear. Hearing aids are not usually covered by insurance.
Business model
Audicus bases its business model off of the idea of unbundling. It segments and eliminates costs typically factored into the price of a hearing aid sold through an audiology clinic. Instead of retailing the product in a store, Audicus sells its products over the internet. It aims to cut out three major costs: 1) manufacturing, 2) custom molding, and 3) returns. Custom molds can be accounted for with adjustable, replaceable silicone parts. Finally, Audicus returns rates are three-fold lower than the industry average as people are more willing to part with (and return) $5,000 hearing aids (versus $1,200).<ref name="betabeat.com"/>
Customers send in hearing tests to Audicus; Audicus uses these results to program the hearing aids, like one would use a prescription for eyeglasses. The hearing aids are shipped to the customer and can subsequently be serviced in the Audicus office for the lifetime of the device<ref name="auto"/>
Companies with comparable business models include Warby Parker, 1-800 Contacts, and Harry's.<ref name="xconomy.com"/>

Main Menu

See Also

Main Menu