In the United States, the warehouse retail chain Costco, known for selling bulk quantities of food and household items at affordable prices, along with its generous return policy and excellent customer service, has garnered a strong following among consumers. However, what many may not realize is that Costco has also become a popular destination for purchasing hearing aids. What could be the reason behind this unexpected trend?
Costco, a multinational company, operates large membership-based retail stores with nearly 115 million members worldwide and over 800 branches mainly in the United States and Canada, with additional locations in other regions such as Taiwan and mainland China.
In recent years, the emergence of over-the-counter hearing aids and devices like the Apple AirPods Pro 2 that can be converted into hearing aids have greatly assisted individuals with hearing loss.
Since 1989, Costco has been offering hearing aids. Currently, 586 out of 615 Costco stores in the United States, as well as locations in 12 other countries/regions, have dedicated hearing aid centers.
According to a report by The Wall Street Journal, many loyal fans of Costco have placed their trust in the retailer’s hearing aid services. Costco has become the second-largest distributor of hearing aids in the United States, following only the Department of Veterans Affairs.
Paul DiCola, the Assistant Vice President of Costco’s Hearing Aid division, mentioned to The Wall Street Journal that Costco’s bulk purchasing helps in lowering prices. Additionally, Costco does not pay commissions to their audiologists, alleviating the pressure on customers when purchasing hearing aids.
67-year-old Cathy Ellis, who had previously spent $6000 on a pair of hearing aids from a specialist, found the maintenance costs to be exorbitant. Subsequently, she purchased a pair for $3000 at Costco that could sync with her iPhone. Ellis commended Costco for its non-discriminatory and pressure-free environment.
Costco currently offers products from three major hearing aid brands, with prices starting at $1500 per pair. Members have up to 180 days to exchange or return hearing aids for a full refund. The hearing aids also come with a three-year warranty, whereas prices at traditional audiology clinics range from $3500 to $7000 per pair.
Abram Bailey, founder of hearingtracker.com, stated that Costco holds over 16% of the hearing aid market in the United States. The website provides independent reviews of hearing aids from audiologists.
Costco’s hearing aid specialists offer free cleaning and repairs to customers while shopping. DiCola mentioned that members who utilize their support services, including the hearing aid centers, tend to renew their memberships more frequently, shop more often, and spend more during each visit.
Another Costco member shared with The Wall Street Journal that he spent $1500 on hearing aids at Costco and mentioned, “Every time I go into that store to get my hearing aid fixed, I end up buying other things.” This behavior exemplifies Costco’s successful business model.
It’s not just Americans who are turning to Costco for hearing aids. According to a report by “NZ Herald” in New Zealand, the high cost of hearing aids has led some elderly individuals to purchase them from overseas or turn to retailers like Costco.