Working with CPAP Manufacturers: Pricing, Inventory, and Support

Your CPAP costs directly impact margins. Manufacturers control pricing, but you control the relationship.

The Major Players

ResMed

Market position: Dominant player, especially post-Philips recall. Estimated 70%+ market share.

Product lines:

• AirSense 11: Current flagship
• AirMini: Travel CPAP
• AirFit mask series: Full face, nasal, pillows

Pros:

• Best-in-class cloud connectivity (AirView)
• Strong brand recognition with patients
• Comprehensive product line

Cons:

• Highest pricing
• Less negotiating flexibility
• Can feel like "take it or leave it"

React Health (formerly 3B Medical)

Market position: Growing alternative, benefited from Philips recall.

Product lines:

• Luna G3: Auto and CPAP models
• Eson masks: Good reviews, lower price

Pros:

• Competitive pricing
• Willing to negotiate
• Good support for smaller DMEs

Cons:

• Smaller market share (patient brand awareness lower)
• Fewer mask options
• Data platform less sophisticated

Fisher & Paykel

Market position: Strong in masks, limited in machines.

Product lines:

• SleepStyle: Auto CPAP
• Mask lines: Vitera, Evora, Brevida

Pros:

• Excellent mask options
• Good humidity systems
• Growing machine market share

Cons:

• Smaller machine install base
• Less comprehensive ecosystem

Pricing Strategies

Volume Discounts

Manufacturers offer tiered pricing based on purchase volume:

Tip: Consolidate purchases with fewer manufacturers to maximize volume.

GPO Membership

Group Purchasing Organizations negotiate pricing on behalf of members:

• Managed Healthcare Associates (MHA)
• Premier
• AdaptHealth affiliate programs

GPO pricing can match or beat volume discounts without minimum commitments.

Seasonal Promotions

Manufacturers run periodic promotions:

• End of quarter (hitting sales targets)
• New product launches (clearing old inventory)
• Trade show specials

Build relationships with reps to get advance notice.

Inventory Management

Optimal Stock Levels

Machines:

• Keep 2-3 weeks of typical volume
• More for popular models (AirSense 11 Auto)
• Less for specialty (travel, BiPAP)

Masks:

• Higher variety needed (face types, sizes)
• Stock top 3 sellers in all sizes
• Keep trial masks for fittings

Supplies:

• Lower value, lower carrying cost
• Can stock deeper (4-6 weeks)
• Watch expiration dates on filters

Avoiding Dead Stock

Inventory that doesn't move ties up capital:

• Track turns by SKU monthly
• Return slow movers before return window closes
• Discount clearance rather than hold

Drop Shipping

Some manufacturers offer drop shipping:

• They ship directly to patient
• You bill, they fulfill
• Lower inventory investment

Tradeoffs: Less control, patient may see different packaging, harder to bundle.

Manufacturer Support

Rep Relationships

Your manufacturer rep is your advocate. Cultivate the relationship:

• Meet regularly (quarterly minimum)
• Share your challenges and goals
• Ask about upcoming products
• Negotiate during annual reviews

Training Resources

Manufacturers provide (often free):

• Product training for staff
• Marketing materials
• Patient education resources
• Data platform training

Ask for: On-site training for new hires, updated materials when products change.

Marketing Co-Op

Many manufacturers offer co-op marketing funds:

• Typically match 50% of qualified advertising
• Requires using approved messaging
• Application process varies

Underutilized opportunity. Ask your rep about available programs.

Technical Support

When equipment fails:

• Understand warranty coverage
• Know the RMA (Return Merchandise Authorization) process
• Keep replacement stock for warranty swaps

Negotiation Tips

Annual Review Approach

1. Prepare data: Your volume history, growth trajectory, competitive alternatives
2. Know your leverage: Are you growing? Exclusive? Large referral network?
3. Ask for specifics: Not "better pricing" but "10% discount on AirSense 11"
4. Bundle requests: Pricing, training, marketing support, payment terms
5. Get it in writing: Verbal agreements don't survive rep turnover

What to Negotiate

Beyond pricing:

• Payment terms: Net 30 vs. Net 15 matters for cash flow
• Return policies: Longer windows, restocking fee waivers
• Freight: Free shipping thresholds, expedited options
• Demo equipment: Free or discounted units for fittings
• Marketing support: Co-op percentages, display materials

Multi-Manufacturer Strategy

Don't put all eggs in one basket:

Primary manufacturer (60-70% of purchases):

• Best volume pricing
• Deepest relationship
• Priority support

Secondary manufacturer (20-30%):

• Competitive alternative
• Different product strengths
• Negotiating leverage

Specialty (10%):

• Niche products (pediatric, travel)
• Patient-requested brands

Drift works with all major manufacturers' data platforms. ResMed AirView, React Health, and more. [See compatible devices →](/support)