NUH 10.7% 3.1¢ nuheara limited

US OTC market development

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    @Ballsup (In response to Post #: 39407815)

    You raised some very important things to consider - so I took some time formulating an outline of what I've "considered" so far.

    Of course Nuheara are going to have a whole lot more ideas, information, and experience than we have when working out how to sell IQbuds in the US when the OTC laws change. This is supported by:
    • Both JM & DC founding and working with Sensear in the US for many years
    • DC working in the US with Nuheara until just recently
    • Nuheara having already gained experience dealing with a number of different sellers in the US over the past 3 years
    • Current cooperative work with BestBuys, ADCO and Quantum Networks
    • An advisory board with Brian Hall (CE Expert) and Joel Beilin (Audiology expert) - both with a wealth of US experience

    But its a great exercise to start examining how we think they might achieve strong sales in the US in light of the OTC changes.

    First up I don't think "retail is not a viable option" is accurate. Nuheara haven't been talking retail v no retail. They've been talking off the shelf v consultative selling. Its how to make this consultative selling process "work at its best" that they've been spending time on. Hence the work with Specsavers in the UK, the work with ADCO and BestBuys in the US, and their own research etc.

    Nuheara are also constantly learning from "in the market" experience - while their biggest announced OTC competitor BOSE is still trying to build a product! In a discussion I had with Justin a couple of months ago he explained to me how they are now starting to learn much more about who wants their products and how how those people want to buy them. They are finding exactly who the target market is. They are being able to direct marketing effort and our limited dollars directly to the right place. This is happening through in the field experience, through data being constantly fed to them from the APP of every IQbuds owner, and through their recently implemented online hearing assessment tool.

    The OTC law changes are about people being able to buy hearing health products without first going through the formal audiologist/hearing aid process. A process which in itself is very expensive, and results in a very expensive product.
    So how might Nuheara make their product available given this new scenario?
    Lets consider different types of buyers:

    • There are always people who will prefer to buy from the comfort of their own home. To do that, they can go to the newly developed Nuheara website, do an online hearing assessment, identify the product they need, and purchase it directly from Nuheara. Here's an outline of how that channel is developing ... (Or they can go to Amazon and purchase from Quantum Networks).

    • Then we have people who are very happy they don't have to go through the multiple expensive appointments that the Audiology/Hearing industry has forced upon them up until OTC - but still want or need a bit of personal and professional help. This is where an organisation like Specsavers fits perfectly to sell our products. Nuheara needs to ensure that these entities can do the job well (see the snip below about work being done to achieve this) and that they can make enough margin to make a consultative sell worth while (ie IQbudsBOOST (base level), IQstreamTV (nice upsell), IQbudsMAX (for those who like the ultimate and can afford it).

    • Then we have the person who wants to purchase through a CE outlet. Nuheara still want this to be consultative, given this has proven to be a more effective way to sell the product, but it has to be without an audiologist. Here we have the current BestBuys work being done (see second snip below). And we have the work Nuheara have been doing in developing IQconnect:

    So to sum up where I think Nuheara are at in terms of ensuring strong sales in the US with the OTC changes:
    • Three years of learning and development has viable models for selling to varying customers profiles developed and trialled.
    • Margins will not be low - good margins are now possible - with the BOOST, streamTV and MAX each providing a worthwhile margin - and moreso once economies of scale of production are present
    • Connections have been made with BestBuys (>1000 stores), ADCO ( and Specsavers

    (On the point of margins - deals made with US re-sellers have required MUCH lower margins (~10%) than what HN wanted (~25%).)

    So as we can see a lot has already been done in getting ready for the US OTC market. And of course this is just what I know of. I know a lot less about competitors etc (but BOSE have not yet announced a product for which they went through the DeNovo process).

    From what I can see Nuheara have three things still to achieve before August 2020 arrives:
    • Get the MAX product ready (as per the recent ASX update)
    • Move forward on the DeNovo front (in April JM said that the FDA had released the necessary documents to allow Nuheara to move forward and they willbe choosing and using the best path to market once it becomes obvious viaFDA/OTC what this is.)
    • Build the $$$ to a level that will be needed for an all out OTC launch.
    It would be great if this thread could stay focussed on the topic - and contributed to with factual information on both; how well prepared Nuheara are for OTC, and on what has not yet been done, and could still be done.

    Here are a couple of interesting articles related to OTC - there are many more worth reading:
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